Senate passes cash-for-clunkers bill for new car buyers
DETROIT -- The Senate passed a pared-down version of the so-called cash-for-clunkers program Thursday that will give rebates to new car buyers who turn in older, less fuel-efficient models and that supporters are hopeful will kick-start the anemic car market.
The program, offering $3,500 or $4,500 cash vouchers, was inserted into a war-spending measure. As passed, program spending is limited to $1 billion and expires Oct. 1.
Consumer website Edmunds.com estimates it still, however, could boost sales this year by about 250,000 vehicles. This week, General Motors CEO Fritz Henderson said the automaker is seeing some stabilization in its sales and estimated GM could see a sales boost of about 10% if the cash-for-clunkers program takes effect.
Dealers have said they need this to help get customers back in showrooms.
"Cash-for-clunkers will provide a much-needed, short-term boost to the auto industry," said American International Automobile Dealers Association President Cody Lusk in a statement. "Americans need a reason to return to their local dealership, and this program, which benefits consumers and the environment, is a very good reason."
The program would take effect within 30 days of being signed by President Obama, which he has said he will do. Cash-for-clunkers is expected to be in operation in early August.
How it works:
•Passenger cars from 1984 or newer with combined miles per gallon ratings of 18 or less are eligible. Owners could get a $3,500 voucher if they trade for a new car rated at least 4 mpg higher or $4,500 if they buy a car that gets 10 mpg more.
•SUVs, pickups or minivans 1984 or newer that get 18 mpg or less could earn a voucher for $3,500 if their new SUV, truck or minivan gets at least 2 mpg more than their old vehicle or $4,500 if the new truck or SUV gets at least 5 mpg more.
In either case, the owner of the trade-in must have had it at least a year, and it must be drivable. Dealers must provide assurance the trade-in then is scrapped.
