China Posted June 10, 2009 Share Posted June 10, 2009 House passes 'clunkers' plan to boost car sales By KEN THOMAS 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. In May, overall sales were 34 percent lower than a year ago. "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. 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. Link to comment Share on other sites More sharing options...
Kilmer17 Posted June 10, 2009 Share Posted June 10, 2009 So my wifes old minivan that is probably only worth 1500 in a trade in is now worth 4500? How do I do this? Link to comment Share on other sites More sharing options...
SnyderShrugged Posted June 10, 2009 Share Posted June 10, 2009 More wasted tax payer money that will attain virtually no precise benefit. The definition of "clunker" is now aan auto that isnt as fuel efficient as a hybrid? Link to comment Share on other sites More sharing options...
SkinInsite Posted June 10, 2009 Share Posted June 10, 2009 Woo time to get rid off my truck for a new beemer. Link to comment Share on other sites More sharing options...
Peeping Wizard Posted June 10, 2009 Share Posted June 10, 2009 Why not simply provide a subsidy for anybody buying a "fuel efficient" American car? It accomplishes the same thing and requires less administrative headache. Link to comment Share on other sites More sharing options...
panel Posted June 10, 2009 Share Posted June 10, 2009 That seems unfair, Do I have time to buy a $100 car and trade it in for $4,500? Link to comment Share on other sites More sharing options...
SnyderShrugged Posted June 10, 2009 Share Posted June 10, 2009 Why not simply provide a subsidy for anybody buying a "fuel efficient" American car? It accomplishes the same thing and requires less administrative headache. even better, no subsidy and waive all federal taxes and fees that relate to driving for the life of your auto loan or 5 years, whichever comes first. Now THAT would stimulate the economy from the common man's perspective. Link to comment Share on other sites More sharing options...
JohnLockesGhost Posted June 10, 2009 Share Posted June 10, 2009 How about people work hard, save their money, replenish our national reserve of savings. Maybe to do this we'll have to drive our ugly "clunkers" around for a few more years than we'd like, but you can't get ahead without sacrifice, right? Oh yeah, this is America, where economic hard times are an excuse to act more irresponsibly. Link to comment Share on other sites More sharing options...
hockeysc23 Posted June 10, 2009 Share Posted June 10, 2009 That seems unfair,Do I have time to buy a $100 car and trade it in for $4,500? Um well the KBB on a H2 even on trade in has got to be larger than 4.5k I mean I get what youre saying that we shouldn't help people that made bad decisions and I agree. But I don't think 4.5k is really a lot in trade in value. Enough to make people go flip cars right away. Link to comment Share on other sites More sharing options...
FanboyOf91 Posted June 10, 2009 Share Posted June 10, 2009 Here's the House bill (HR 1550). http://thomas.loc.gov/cgi-bin/query/z?c111:h1550: Apparently, car dealers who sign up for the Program issue the vouchers. Link to comment Share on other sites More sharing options...
Peeping Wizard Posted June 10, 2009 Share Posted June 10, 2009 even better, no subsidy and waive all federal taxes and fees that relate to driving for the life of your auto loan or 5 years, whichever comes first.Now THAT would stimulate the economy from the common man's perspective. But that would actually make sense. We can't do that... Link to comment Share on other sites More sharing options...
Rdskn4Lyf21 Posted June 10, 2009 Share Posted June 10, 2009 Can I go buy like 4 $100 cars, and get $18,000 for them for a new one? Link to comment Share on other sites More sharing options...
dockeryfan Posted June 10, 2009 Share Posted June 10, 2009 Increasing consumerism is not the answer. Waste of money, IMO. Link to comment Share on other sites More sharing options...
dockeryfan Posted June 10, 2009 Share Posted June 10, 2009 The way it is written, you could get a voucher while buying a new Hummer. Stupid. Link to comment Share on other sites More sharing options...
#98QBKiller Posted June 10, 2009 Share Posted June 10, 2009 Here's the House bill. http://thomas.loc.gov/cgi-bin/query/F?c111:1:./temp/~c11175kUBr:e426: Apparently, car dealers who sign up for the Program issue the vouchers. That link is broken. Link to comment Share on other sites More sharing options...
PokerPacker Posted June 10, 2009 Share Posted June 10, 2009 I do want to point out that it mentioned the voucher for your trade could be worth "up to" $4,500. Either way, though, I don't like this bill. Link to comment Share on other sites More sharing options...
twa Posted June 10, 2009 Share Posted June 10, 2009 The way it is written, you could get a voucher while buying a new Hummer. Stupid. Yep Why not include the credit for motorcycle purchases as well? The asking price for my old Explorer just went up:D Link to comment Share on other sites More sharing options...
sacase Posted June 10, 2009 Share Posted June 10, 2009 STupid bill. Wasting tax payer dollars on the global warming myth. If people want to buy hybrids they will. Link to comment Share on other sites More sharing options...
dockeryfan Posted June 10, 2009 Share Posted June 10, 2009 STupid bill. Wasting tax payer dollars on the global warming myth. If people want to buy hybrids they will. way to miss the point entirely. It isn't about global warming. Even if it were an attempt to reduce fuel consumption, it would be to reduce dependence on oil, not to reduce greenhouse gasses. It's ostensibly about saving the American Auto Industry. It's about increasing consumerism, to help these failing companies. An estimated 1 in 10 jobs, about 13,000,000, is related to the automobile industry. If we help them, we save job cuts. That's the thinking anyway. It's failed thinking, because the job cuts will still happen. Struggling families should not be buying cars. It reminds me of when Bush told everybody to go out and spend for the holidays. It's not a creative solution to this problem at all. Link to comment Share on other sites More sharing options...
Fifty Gut Posted June 10, 2009 Share Posted June 10, 2009 this may not be the best way to go about ridding American streets of gas guzzlers, but I'm sure as hell taking advantage of the program. I've been waiting for this program to pass, the Senate is next, in order to buy a new car. I've got two late 90s SUVs I was just gonna junk or donate cause they had little to no trade in value Link to comment Share on other sites More sharing options...
The Mayor of Fed Ex Field Posted June 10, 2009 Share Posted June 10, 2009 They are projecting 650K additional sales in 2009 because of this. Link to comment Share on other sites More sharing options...
The Mayor of Fed Ex Field Posted June 10, 2009 Share Posted June 10, 2009 "I've got two late 90s SUVs I was just gonna junk or donate cause they had little to no trade in value" Consider that now $9K. You have to move up 10 MPG to get the $4500, I think its 4 or 5 to get the $3500. If you drive an old Ford pick up truck that gets 15 MPG, and buy a new 2009 Chevrolet Silverado that gets 20 MPG. You can get $4500. Link to comment Share on other sites More sharing options...
BigMike619 Posted June 10, 2009 Share Posted June 10, 2009 I have a 94 Z-71 that might just need to find its way for another Chevy. Link to comment Share on other sites More sharing options...
Fifty Gut Posted June 10, 2009 Share Posted June 10, 2009 "I've got two late 90s SUVs I was just gonna junk or donate cause they had little to no trade in value"Consider that now $9K. You have to move up 10 MPG to get the $4500, I think its 4 or 5 to get the $3500. If you drive an old Ford pick up truck that gets 15 MPG, and buy a new 2009 Chevrolet Silverado that gets 20 MPG. You can get $4500. yeah, the program is a bit suspect. they should be encouraging less trucks, SUVs and low MPG minivans on the road, not more just because the MPG rating has improved a little bit since the 90s Link to comment Share on other sites More sharing options...
SnyderShrugged Posted June 10, 2009 Share Posted June 10, 2009 yeah, the program is a bit suspect. they should be encouraging less trucks, SUVs and low MPG minivans on the road, not more just because the MPG rating has improved a little bit since the 90s "they" shouldnt be encourageing nor discouraging anything whatsoever. "They" should fully support whatever auto market that fits the needs and desires of American families. period Link to comment Share on other sites More sharing options...
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