Feds To Offer Cash For Your Clunker

coondoggie sends along a NetworkWorld piece that begins, "The government... wants to motivate you to get rid of your clunker of a car for the good of the country (and the moribund car industry). A 'Cash for Clunkers' measure introduced this week by three US Senators, two Democrats and a Republican, would set up a national voucher program to encourage drivers to voluntarily trade in their older, less fuel-efficient car, truck, or SUV for a car that gets better gas mileage. Should the bill pass, the program would pay out a credit of $2,500 to $4,500 for drivers who turn in fuel-inefficient vehicles to be scrapped and purchase a more fuel-efficient vehicle."

Comments

Just a question

[papabob]

Is this the first time the US goverment give helps to replace old cars? In Europe is a common practice and I though it was a worldwide routine.

(If I recall correctly, it started here in mid 80s to help the transition from leaded to unleaded gas and to improve the general safety of the cars - you know, in those days people drove those 70's tiny tin-'cubic'-car with sharp edges and no safety belt)

One sixth, not six times

[tinrobot]

The average is in the range of 10-15%, which is about one sixth the lifetime emissions of the vehicle. Perhaps you got your numbers mixed up.

Here's a good Google Answers article with lots of references:

http://answers.google.com/answers/threadview?id=433981

Re:Won't Help Big Three

[martin-boundary]

That's not very good economics, though.

Say A buys a used, more fuel efficient car from B, B buys a used, more fuel efficient car from C, C buys a used, more fuel efficient car from D, and D buys a new, more fuel efficient car.

All the old cars are exactly as fuel efficient as they always were, one new fuel efficient car was bought at the cost of 4 vouchers for a total of $10,000-$18,000, and one old car is either being scrapped, or more likely is put on the market for someone else to drive.

Re:My old car is fine

[Anonymous Coward]

Before you get all high and mighty, realize that the US and UK use different gallons. And the UK gallon is larger. 1 US gallon is about .8 UK gallons.

So 34 mpg (US) is a little over 40 mpg (UK).

Oops, that 15 year old car hit that 40+ mpg efficiency you deem so magical.

Not QUITE...

[denzacar]

From TFA:

The catches:

        * The traded-in vehicles must have a fuel economy of no more than 18 miles per gallon;
        * Auto needs to be in be in drivable condition, and have been registered for at least the past 120 days;
        * The voucher needs to be used towards the purchase of a vehicle that has value of less than $45,000, is model year 2004 or later, and meets or exceeds federal emissions standards;
        * Vouchers could also be redeemed for transit fares for participating local public transportation agencies.

For traded-in vehicles that are model year 2002 and later, drivers would receive a voucher for: The purchase of a new vehicle: $4,500; the purchase of a used vehicle: $3,000; a transit fare credit: $3,000.

For traded-in vehicles that are model year 1999 - 2001, drivers would receive a voucher for: The purchase of a new vehicle: $3,000; the purchase of a used vehicle: $2,000; a transit fare credit: $2,000.

For traded-in vehicles that are model year 1998 and earlier, drivers would receive a voucher for: The purchase of a new vehicle: $2,000; the purchase of a used vehicle: $1,500; a transit fare credit: $1,500.

So... you are free to buy a USED car as well - only you get less cash for that. Then again - a used car WILL be cheaper.
And you can even use the money for public transport - if you want to go really green and give up your car completely.

Re:They pay more to scrap fuel efficient cars

[c]

> The equivalent 2009 model has 1MPG less efficiency than my model.

You're not comparing the original sticker mileage of a '94 with a '09, are you? Remember that they changed the rules a few years back, and newer cars on paper tend to be less efficient than the original values of older cars.

c.