New Version of Cash For Clunkers Program Would Give Buyers $3,000 to $5,000 Toward New Car

A new spin on the cash for clunkers program was introduced by an Ohio congresswoman Tuesday. The bill would give car shoppers $3,000 to $5,000 to hand over their vehicles that are more than eight years old and use the money to buy a new car or truck that is more fuel-efficient, USA Today reports.

"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. "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."
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What would the government do with all the clunkers being traded-in for the incentive?
The original cash for clunkers program was taken out of the stimulus package before being passed. But overseas, several European countries have a plan like this and it reportedly is helping. 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 incentive.
Car buyers would get $3,000 to trade in a car more than eight years old if they buy a new car that gets more than 27 miles per gallon or truck getting more than 24 mpg. They would get $4,000 to $5,000 if they buy new cars that get more than 30 mpg and commercial trucks getting better mileage than their older counterparts.
USA Today’s story didn’t say what would happen to the old cars being traded-in.
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