The U.S. House of Representatives passed the "Cash for
Clunkers” bill on Tuesday, sending the legislation to the Senate. The
$4-billion bill would provide consumers with cash vouchers to purchase
new, more fuel-efficient vehicles after getting rid of less-efficient
“clunkers.”
To be eligible, the bill states a “clunker” must get
18 mpg or less in combined city and highway fuel ratings. Under the program, consumers who
purchase new vehicles that are at least 4 mpg more efficient than their
previous vehicles would receive a $3,500 voucher. A
$4,500 voucher would be given for purchasing a vehicle that’s at least
10 mpg more efficient.
Cars that are 25 years or older and those
that haven’t been insured for the past year aren’t eligible for the
program. The program would last for one year or until funding runs out.
A
similar bill currently in the Senate would take funding from current
stimulus dollars, whereas the bill passed by the House would require new funding.
“‘Cash
for clunkers’ is a common-sense proposal that will help provide a shot
in the arm for the American auto industry at a crucial time for our
economy, reduce the emissions that cause climate change, and make
America more energy independent,” House Speaker Nancy Pelosi said in
May. “By helping Americans trade in their old, less fuel efficient cars
and trucks for newer, higher mileage vehicles, consumers will save
money at the pump, help protect our planet, and create and save jobs
for American autoworkers.”
The Specialty Equipment Market
Association (SEMA) issued a statement last month expressing its
disappointment in the measure because scrapping cars would jeopardize
the jobs of independent repairers.
The Automotive Aftermarket
Industry Association (AAIA) also opposes the bill, claiming it would
prematurely destroy vehicles and their parts and components, limiting
low- and middle-income families’ access to used vehicles.
Click HERE to read about the bill’s introduction.
Click HERE to read an essay in support of Cash for Clunkers by National Auto Body Council Executive Director Chuck Sulkala.
