Today, Congress officially House approved a "cash for clunkers" program 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.
Under the program, 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. It is also possible consumers could also receive vouchers for leased vehicles. It is important to remember that this voucher is taken into account after you receive and discounts or dealer incentives, so the total savings could be significant.
There are two key points to remember:
1. Trade in a car that — this is important — has been registered and in use for at least a year (under the same registration), and has a federal combined city/highway fuel-economy rating of 18 or fewer miles per gallon.
2. Buy a new car, priced at $45,000 or less and rated at least 4 mpg better than the old one to get the $3,500 voucher. If the new one gets at least 10 mpg better, you get the full $4,500.
Representative 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."
The program 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.
To determine the combined gas mileage on your current vehicle, you can visit http://www.fueleconomy.gov/. Go to the lower right hand corner of the main page on click on the “1985-2010 MPG estimates.” It is right below the “2009 Fuel Economy Guide” box.
Details of the program can be found at http://www.cashforclunkersheadquarters.com/
