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.

No related posts.

President Obama is set to release new pollution standards today that will up the miles per gallon a fleet must have by 2016. At the time this article was written, information and details had not yet been released, however California, the District of Columbia, and thirteen other states have been urging the federal government to let them put forth more harsh standards than what the government’s current requirements are. The 15 entities are asking for regulations that would cut greenhouse gas emissions by 30 percent in new vehicles by 2016. Of course, in March 2008, there was a ruling that said states couldn’t determine their own limits on greenhouse emissions, so the legislation would have to come from the federal government.

Today’s announcement is set to follow the same path as the 30% reduction in greenhouse emissions by 2016. It is rumored that the new emission rules would go into effect for cars and trucks made for the 2011 model year and beyond.

The new proposal will have two separate standards for fuel efficiency and greenhouse emissions. The idea is to get car manufactures to produce cars that have a high MPG as well as a smaller carbon footprint. Roland Hwang, the vehicles policy director for the Natural Resources Defense Council said he expects the standard will be set somewhere around 35 miles per gallon for the vehicle fleet by 2016.

There is already a law on the books that requires at least 35 miles per gallon by 2020, which is a 40% increase from the current 25 miles per gallon standard. The energy law, implemented in 2007, however is seen as just not enough right now since we’ve seen what high gas prices can do to our wallets, as well as what high emissions can do to the environment. The current 25 miles per gallon standard hasn’t been changed since 1985.

The government is already pushing General Motors as well as Chrysler to produce more fuel efficient/environmentally friendly vehicles. Since the two companies have accepted billions of dollars in federal money, it would probably be in their best interests to continue to do things that the government “suggested.”

New fuel efficiency standards for U.S. made cars would likely make American made cars a bit more appealing to everyone, not just Americans, but car buyers from all over the world. If you look at countries like Great Britain, when we were complaining about our gas being over $4 a gallon, they said that they would welcome a price like that. At the time, they were paying upwards of what equaled out to 10 U.S. dollars for a gallon of gasoline.