The house has now passed the Cash for Clunkers stimulus bill that will, if passed by the Senate, allow customers to receive up to a $4,500 voucher to trade in their gas guzzlers for a more fuel-efficient new vehicle.
For consumers this means you now have more incentive do get ride of the old 18mpg or worse vehicle and pick up a new ride that will get higher mpg. Clunkers are considered passenger cars, mini vans, SUVs, and light-duty trucks that get 18 mpg or less city/highway combined. Also included in the clunker category are large light-duty trucks that get at less than 15 mpg as well as work trucks manufacture before 2002.
For passenger cars and mini vans, if the new vehicle is at least 4 mpg higher than the old vehicle you will receive a $3,500 voucher towards a new vehicle. If the new vehicle is at least 10 mpg higher than the old vehicle, the voucher is good for $4,500. For light trucks and SUVs, the new truck or SUV needs to be at least 2 mpg higher to obtain the $3,500 voucher, and at least 5 mpg higher than the old vehicle to receive the full $4,500. Large Light duty trucks need a 1 mpg improvement to obtain the $3,500 voucher and at least 2 mpg increase for the $4,500 voucher. Work trucks will receive a voucher for $3,500 towards a later model truck or a smaller truck.
All the old clunkers turned in through this program will be crushed and the engines and transmissions will be shredded. The hope is to get these higher polluting vehicles off the roads and replaced with cleaner vehicles. Though this bill has only been passed by the House thus far, there is a lot of excitement in the auto industry. There is talk of a one-year time limit or 1 million purchase limit. For this reason, it is vital to pay close attention to when the bill becomes affective and what exactly the guidelines will be since they can change in the Senate. This bill will be a great way to upgrade into the nicer more luxurious vehicle you have always want!
