Cash for Clunkers. Save money on your new Camaro!

[steveo17]

MSNBC.com

House approves ‘cash for clunkers’ plan
Consumers could receive $4,500 in rebates for turning in gas-guzzlers
The Associated Press
updated 5:50 p.m. ET, Tues., June 9, 2009

WASHINGTON -

The House on Tuesday approved a "cash for clunkers" bill that aims to boost new auto sales by allowing consumers to turn in their gas-guzzling cars and trucks for vouchers worth up to $4,500 toward more fuel-efficient vehicles.

President Barack Obama has encouraged Congress to approve consumer incentives for new car purchases as part of the government's work to restructure General Motors and Chrysler. The House approved the bill 298-119.

Supporters pushed for the measure to stimulate car sales and increase the fleet of fuel-efficient vehicles on the nation's highways. The auto industry has sought the incentives after months of poor auto sales.

"Stimulating sales is the only way to get the auto industry back on its feet," said Rep. Donald Manzullo, R-Ill.

General Motors Corp. and Chrysler LLC have received billions of dollars in government aid and the entire auto industry has watched car sales plummet during the past year. In May, overall sales were 34 percent lower than a year ago.

"Our industry has been stuck in neutral and really has not started to move," said Larry Kull, president of Marlton, N.J.-based Burns Kull Automotive Group, which includes General Motors, Honda and Toyota dealerships.

President Barack Obama has urged Congress to approve consumer incentives for new car purchases as part of the government's efforts to reorganize General Motors and Chrysler through the bankruptcy courts.

The vehicle scrappage bill has been under negotiations for months as lawmakers try to find a solution that boosts car sales while providing some environmental benefits. Proponents have pointed to similar programs in Europe that have enhanced auto sales.

Opponents said the bill failed to include incentives for used vehicles and represented an artificial incentive for the industry.

"It's defying the laws of economics and saying we can manufacture enough of a demand to keep the auto industry afloat," said Rep. Jeff Flake, R-Ariz.

Separately, House and Senate appropriators were discussing providing $1 billion to a supplemental war funding bill for the "cash for clunkers" program, which aims to generate about 1 million new auto sales. Since the yearlong vehicle program is expected to cost $4 billion, lawmakers would attempt to find the additional money later this year.

Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker.

Owners of sport utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle. Consumers could also receive vouchers for leased vehicles.

Rep. Betty Sutton, D-Ohio, the bill's chief sponsor, said the bill showed that "the multiple goals of helping consumers purchase more fuel efficient vehicles, improving our environment and boosting auto sales can be achieved." Sen. Debbie Stabenow, D-Mich., has backed a similar version in the Senate, which has the support of automakers and their unions.

The bill would direct dealers to ensure that the older vehicles are crushed or shredded to get the clunkers off the road. It was intended to help replace older vehicles — built in model year 1984 or later — and would not make financial sense for consumers owning an older car with a trade-in value greater than $3,500 or $4,500.

The U.S. industry is expected to generate about 9.5 million vehicles sales in 2009, compared to more than 13 million in 2008 and more than 16 million in 2007.

Auto analysts questioned whether it would be enough of an incentive for many consumers burdened by debt or financially stressed by the troubled economy.

"That is the major sticking point for Americans: How do you finance your vehicle? How do you pay for it?" said Rebecca Lindland, an auto industry analyst for the consulting firm IHS Global Insight.

A group of senators led by California Democrat Dianne Feinstein were pushing an alternative version that would require consumers to trade up for more fuel-efficient cars and trucks to qualify. They complained that even a 2009 Hummer H3T, which gets 14 mpg in city driving and 18 mpg on the highway, could qualify for the incentives under the House bill.

Under Feinstein's plan, a passenger car owner's trade-in would need to get 17 mpg or less to qualify and only new passenger cars getting at least 24 mpg would be eligible. Owners could receive a $2,500 voucher for a new car that gets at least 7 mpg more than their old car. The voucher would increase to $3,500 for new cars with a 10 mpg improvement and $4,500 for new cars with a 13 mpg increase in fuel efficiency.

for those trading in cars for a camaro, this could be an additional way of saving money perhaps

[vm1971]

and maybe finally (no offense to any owners of these) we'll see less and less "MONTE LUMINAS" on the road. hahahha!!!

[HemiWK57]

OK so can someone answer this for me? I have a 2005 Jeep Grand Cherokee with a 5.7 Hemi. Do I qualify for anything on a new V6 camaro?

[weedwacker13]

Ill give you $4,500 for a 5.7 jeep, just let me know.

[LDGn63]

Originally Posted by vm1971

and maybe finally (no offense to any owners of these) we'll see less and less "MONTE LUMINAS" on the road. hahahha!!!

Ha! my previous commuter was a Lumina sedan 27 MPG v6 and would burn the tires off from a standstill. (wasnt real pretty though)

[LDGn63]

Originally Posted by weedwacker13

Ill give you $4,500 for a 5.7 jeep, just let me know.

surely this is ON TOP of trade value. (but watch out for low-ball trade values in conjunction)

[PieNsky]

Looks as if I come close, but no cigar. My 2 wheel drive, 4 cylinder 4runner is listed as 18 city 22 hwy on the revised EPA MPG. I noticed you have to get a max of 18 mpg and I suppose that is combined but I can not find how they will do ti. On the gov site, it lists what a 15,000 mile a year use would cost and it was based on a combined driving (45% city?).

[weedwacker13]

I dont believe that the bill is for above trade in value.

It is intended to get old cars off the road. Not 4 year old cars.

Anyway, my offer stands

[PieNsky]

Originally Posted by LDGn63

surely this is ON TOP of trade value. (but watch out for low-ball trade values in conjunction)

I don't think so as the vehicles will be crushed to ensure that they will be taken off the road. Also, they would have to be in your name and insured for at least 12 months before the trade in.
Hmmmmm.... It will last for 12 months after it passes so you would have to go out NOW and buy a clunker and put the minimal insurance on it to get 4500 dollars

[LDGn63]

Originally Posted by weedwacker13

I dont believe that the bill is for above trade in value.

It is intended to get old cars off the road. Not 4 year old cars.

Anyway, my offer stands

yea, apparently i fail reading comp 101!
"The bill would direct dealers to ensure that the older vehicles are crushed or shredded to get the clunkers off the road. It was intended to help replace older vehicles — built in model year 1984 or later — and would not make financial sense for consumers owning an older car with a trade-in value greater than $3,500 or $4,500."

[HemiWK57]

OK, so I guess I misunderstood and thought it would be an additional 3500-4500 incentive. Obviously my vehicle is worth more than 4500.

[Dukeboy01]

This program only works if you have a junker that's worth less than $4,500. You don't get the value of your trade- in and $4,500. If your car is worth more than $4,500 as a 2005 Jeep Grand Cherokee surely would be, then you would just trade your car in.

The way to make this work is to go find a $500 junker this weekend before the bill is signed, keep it for a year and then trade it right before the deal sunsets in 2010. If you already have an old junker, you're a step ahead in getting a handout from Uncle Sugar.

[camaro67]

does my old 67 qualify big block about 10 miles per gallon

[Design1stCode2nd]

The problem with this bill is at best you can get $4,500 so Unless you are rolling around in 15-20 yr old car this isn't all that great. Most 10yr old cars if they run OK will get you 2-4 grand anyway. Someone is always looking for a beater. And this is on a new car not a new used car so if you are running around in a 15 year old car most likely you can't afford a new one anyway.

So this will help a few people but not many.