Cash For Clunkers bill passes, what does it mean for you?

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Cash For Clunkers bill passes, what does it mean for you?

June 19, 2009 – 9:05 am – No Comment

On Thursday, the Senate passed a “Cash for Clunkers” bill that would give car buyers an incentive to take in their cars and get a new or used car. So, what exactly is this “Cash for Clunkers” bill and how will it affect you?

Well, if your car gets less than 18 miles per gallon, when you go to trade in your car, the government will send the dealership a voucher for $3,500 if the car you get has at least gas mileage of 22 mpg or higher, it becomes $4,500 if it’s 28 mpg or higher. If you own a pickup truck, sport utility vehicle, or minivan that gets 18 miles per gallon or less, you would receive a voucher for $3,500 if the vehicle you purchase gets at least 2 miles per gallon higher than you current vehicle and $4,500 if the vehicle you purchase gets 5 miles per gallon more.

If you have any emotional attachment to your current car, this may not be the deal for you. When you take your car in, it will not go to a loving home or sent out to “live on a farm.” The bill is to ensure that these cars are taken off the roads, so your car will go to scrap and either shredded or crushed.

Obviously, if your trade in value is higher than $3,500 or $4,500 it wouldn’t make much sense for you to participate in this bill anyway simply because the dealership will not give you the trade in value for your car if they have to send it off to be scrapped.

GM and Chrysler have both lobbied for this bill to be passed and while it is another thing that the government has thrown $1 billion at, it is good in the long run for not only the car manufacturers, but also the environment. The only problem is that all the SUVs that were purchased at the height of the “craze” have a higher trade in value than the $4,500 currently offered. If you purchased a Tahoe in 2004, I’m sure that your trade in value is more than $4,500, so that car hasn’t been taken off the road.

I think that this bill is a step in the right direction, but in my opinion, I think that people who drive environmentally UNfriendly cars should be taxed to make up for what the government has spent on this bill.