$3,000-$5,000 incentive for car buyers proposed
DETROIT -- An Ohio congresswoman unveiled another iteration of a cash-for-clunkers plan, a bill aimed at spurring car sales by giving buyers $3,000 to $5,000 to turn in their old wheels for something new and greener.
"This is a very comprehensive bill with multiple beneficial effects that I think will make it palatable to enough of the Congress that we can enact it," says Rep. Betty Sutton, D-Ohio, who introduced the bill Tuesday. "It not only assists consumers who need a lot of help in this economic downturn, but it will stimulate our economy, reduces emissions, and reduces our dependency on foreign oil."
An earlier attempt to pass such a plan failed to gain broad support throughout Congress. But European car sales are benefiting from such efforts. A recent analysis by CSM Worldwide showed vehicle sales in the several nations with such plans will be 400,000 more this year than they'd be without the bonus.
The bill would give $3,000 to consumers trading in cars more than 8 years old if they buy a new car that gets more than 27 miles per gallon or truck getting more than 24 mpg. The rebate would rise to $4,000 to $5,000 for cars getting more than 30 mpg and for commercial trucks getting better mileage than their older counterparts.
Though the bill has automaker support, the potential cost could doom it, says Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable. "The bill could become the victim of its own success. If everyone takes advantage of it, then the costs shoot up."
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