Skip to comments.US House Passes 'Cash For Clunkers' Bill
Posted on 06/10/2009 2:39:21 AM PDT by Daffynition
WASHINGTON -(Dow Jones)- The U.S. House of Representatives approved legislation Tuesday aimed at stimulating auto sales by providing cash vouchers to consumers to trade in gas-guzzling cars for newer, more efficient models.
The 298-119 vote culminates months of wrangling among lawmakers over the details of a so-called "cash for clunkers" program, pushed mainly by Democrats and President Barack Obama. Most members voting "yes" were Democrats, while all but a few of the "no" votes came from Republicans.
The legislation aims to halt a steep slide in auto sales. Proponents pointed to a program in Germany credited with spurring a double-digit spike in car purchases there.
Rep. Sandy Levin, D-Mich., said the U.S. government's efforts to restructure the auto industry, which is costing tens of billions of dollars, "won't work if there isn't work on the demand side."
The legislation, which still must be passed by the Senate, faces hurdles, including questions about where to find the money for the one-year, $4 billion program. Some lawmakers have suggested the money could come from the economic- stimulus package passed earlier this year.
The House bill, authored by Rep. Betty Sutton, D-Ohio, would authorize the administration to provide cash vouchers of as much as $4,500 to consumers who trade in older vehicles and then lease or purchase a newer, more energy- efficient one. It would require the older vehicle to have a fuel economy of 18 miles per gallon or less and the newer vehicle to get at least 22 mpg. The voucher would be worth $3,500 if the newer vehicle achieved a 4 mpg increase in fuel economy. If the mileage of the new car was at least 10 mpg higher than the older vehicle, the voucher would be worth $4,500.
The older vehicles would be dismantled. [snip]
(Excerpt) Read more at money.cnn.com ...
So this is how they crush Ford, Toyota and Honda of America.
How much for a dilapidated Pelosi?
CWII rapidly gaining ground on WWIII....
So the used car market is going to be flooded with gas guzzlers which will be selling at low prices. I thought the goal was to get them off of the road instead of making them attractive.
According to the article it seems to allow purchase of a "newer" car rather than a new car. Room for a lot of shenanigans to go on here. Of course that may be the purpose of the whole fiasco.
Agreed! My mind is still trying to absorb this fiasco ...need more coffee.
I believe the news stories say that the cars are ‘sposed to be “dismantled” ...so if you’re in the parts business, that may mean a good thing, until the market is glutted.
It’s Bambi handing out the pie to his followers. Every good dictator has got to give a little largesse every now and then. Keeps his ignorant followers loyal.
Sure, spend another coupla hundred billion - its all gonna be inflated away anyway - its freeeeeee money!
first, i post a sale for a ‘brand new car’, normally retailing for $20,000, for $19,000
then, i get a clunker from the junk yard for $100. trade it in and buy the car for $20,000 but only pay $15,500.
i then deliver it to my customer who bought it from me for $19,000... pocketing the $3,400
not a bad profit... 3400% on my money ... straight from the US taxpayer
yea.. this won’t get scammed by ACORN
At least it’s a better deal than my last car purchase. Last time around, I spent $80B for a controlling stake in GM, which is worth nothing. This time around, I’ll pay $4500 at a time for cars worth $100. By obama’s standards, that’s better than average.
The plan does have several hurdles that will keep some potential buyers on the sidelines. The clunker being traded in will be crushed or recycled, meaning it will have no trade-in value beyond the voucher. Of the 25 million vehicles estimated to qualify for the voucher, most will be trucks: even 15 years ago, only five models of midsize sedans managed just 18 m.p.g.
To ensure the vehicles being crushed are actually coming off the road rather than cinder blocks, the trade-ins have to have been registered and insured for at least the past year.
Hemorrhage vs paper cut. I love it!
Anyone who accepts the “cash” is just hiking the price on themselves. When will the idiots out there come to realize the government has nothing until they take it out of our pockets. Its going to be really ugly when those capable of a smidgen of rational thought suddenly realize what has been foisted upon them.
Toyota and Honda would be the big beneficiaries. Meh.
Big beneficiaries? Government-owner auto production will undercut Ford, Toyota and Honda. They won’t be able to compete. They’ve already got a borrowing problem. Chrysler and GM are getting our bailout money at a much lower rate than the other three can. And then there’s the auto turn-in for clunkers-for-cash going on.
Yep. This is so true.
There is NO doubt, the government is saturated with population control advocates.
This is “Here’s $4,500 to put you in the death trap of your choice!”
As far as I’m concerned, their followers deserve to die on the road.
But ...but .... Honda and Toyota already have the cars .... how long will it take for GM to have them on the lots?
I’m trying to look up CAFE standards and how the EMPG will be calculated for the program ...or should I say pogrom? I have to get to work now. Later.
So the House thinks that people will give their cars up? Keep on dream......................LOL