‘Cash for Clunkers’ Program May Become a Reality

Two weeks ago, we did a story on the “cash for clunkers” program that was being considered by the Senate. The program is now on the fast track to possible approval, with executives and lobbyists for domestic and foreign auto makers trying to reach an agreement on the program in the next few days.

They want it to be added to the nearly $900 billion economic-stimulus package the Senate will debate next week. The stimulus package was approved in the House Wednesday.
The “cash for clunkers” program would give federal tax credits of as much as $4,500 to consumers who replace older gas guzzlers with new, fuel-efficient cars, reports the Wall Street Journal.

Executives from the Detroit Three are still wary of the program because they worry that it would encourage people to replace their older, American-made cars with new vehicles made by foreign competitors. Auto-industry lobbyists say the plan could help stimulate new auto sales while reducing emissions of greenhouse gases.

If the program is approved, it could be a great money-saving way to dump your gas guzzler for a more fuel-friendly vehicle.