Cash for clunkers program proposal - 5/5

[SmartPassion]

What does everyone think about this?



President Barack Obama and Democratic lawmakers reached an agreement on “Cash for Clunkers” — a legislative proposal designed to stimulate U.S. auto sales.
The one-year plan crafted by members of the U.S. House of Representatives would offer vouchers worth up to $4,500 for owners to replace their less fuel efficient vehicles for models that get better gas mileage.
The goal of the "cash for clunkers" legislation is to sell 1 million vehicles.
"By stimulating consumer demand for new vehicles, this proposal will directly benefit domestic autoworkers and automotive manufacturers, which have arguably been hardest hit by the current economic downturn," said Rep. John Dingell, a Michigan Democrat.
Previously, two versions of Cash for Clunkers were being floated in Congress — one introduced in the House of Representatives (H.R. 1550) by Rep. Betty Sutton (D-Ohio) and one by Dianne Feinstein (D-Calif.) (Bill #S. 247).
While full details of the compromised plan are not yet known, Dingell said consumers would get a $3,500 voucher if they trade in a car that gets less than 18 mpg for a new car with mileage of at least 22 mpg. Vouchers of $4,500 would be awarded if the new car gets at least 10 mpg more than the old.
It isn’t yet clear whether there is an age minimum for the cars being traded in, or whether foreign models qualify for the Cash for Clunkers assistance. These were two of the key differences in the bills proposed.
The Democrat-compromised Cash for Clunkers bill will likely be included as a provision of a larger Climate Change package being pushed by Democrats. It would still need to be officially passed through Congress and signed by the president being taking effect.
“Once in a while when you’re in Congress, you do something that really matters in people’s lives,” said President Obama, referring to Cash for Clunkers.
Rep. Henry Waxman (D-Calif.) head of the House Energy and Commerce Committee, said the Climate Change bill is on schedule to pass this year.
Cash for Clunkers has drawn opposition from most proponents of the automotive aftermarket, including SEMA and AAIA. The ASA has pushed for the Clunkers bill to include a repair option.

[John_H]

Sounds decent as long as the car is shown as owned for a minimum amount of time. What happens to the old cars?

[jetfuel]

...meet EZ crusher model A

jetfuel

[forestacademy]

Germany is using a similar program, Problem for them is no one is buying the BMW and Mercedies that are made in Germany, They are buying those smaller greener french cars.

If they try and make it domestic produced cars only, or the old 50% or more substantialy altered in the US, it will be interesting for folks to find out what cars are made here.

[cubefx]

I got this siting in my garage.....



But seriously, I do not like that program. Cars will be crushed.
Eliminating older cars from the road also eliminates the chances to restore, repair and maintain older cars by removing the supply of used parts from those of us who choose not to waste our money on new cars.
Plus, what we will collect in 15-20 years?

CUBE

[jwight]

Just waiting for this to become law and the wife's Town Car is history (or I will be.)

[jetfuel]

...lucky her...two birds with one stone...

jetfuel

[Smart Enuf]

I don't have a problem with this proposal. In California, we've had these SCRAP programs since the early '90s. In those programs, which were voluntary, owners were paid on the order of $700-$1000 per gross emitting vehicle. The idea there, which was well documented and supported by data, is that a car's emissions generally increase significantly as the car ages and its emission control systems degenerate (particularly true for late model vehicles). For the federal proposal, the amount being discussed is quite a bit more.

Since these are voluntary programs, I think we should let the market decide if these programs succeed. If car owners think these older cars are valuable, they can keep them and not participate in the scrap programs. On the other hand, entrepreneurs can buy them up, not scrap them, but instead sell them to collectors or others who will need the parts.

Nobody is forcing car owners to sell their cars to be scrapped, and the decision to scrap should be up to each car owner. What's wrong with a little incentive to sweeten the pot if it helps get rid of gross polluting vehicles that owners find little value in? And if the money is put back into the economy for the purchase of a new car, isn't that a good thing, especially in this economy?

[headless]

The British government have just introduced this over here.
You can get up to £3,000 off a new car if you trade in an old car over 9 years old, so now all the car dealers are advertising on telly and in the papers all about this new discount.
Will it work?, not so sure, most people that buy new cars trade in a much newer car, the people with cars over 9 years old don't tend to buy new cars anyway.
I can see the sales of cars over 9 years old increasing though, buy an old banger for £200 and trade it in and get £3,000 off a new car.........now where's that Autotrader magazine.

[Jordon]

Sounds to me like this will put less used vehicles for sale. There are some that cannot afford a new car even if they get that $4500 break, and this will take many of the older cars for the lower class off the market and in the crusher. I just think its a waist, and won't work the way they think it will.