Trade in your shit box and get $4500

The Associated Press: House passes 'clunkers' plan to boost car sales




House passes 'clunkers' plan to boost car sales

By KEN THOMAS – 4 hours ago

WASHINGTON (AP) — 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.

The U.S. industry is expected to generate about 9.5 million vehicles sales in 2009, compared to more than 13 million in 2008 and more than 16 million in 2007.

Auto analysts questioned whether it would be enough of an incentive for many consumers burdened by debt or financially stressed by the troubled economy.

"That is the major sticking point for Americans: How do you finance your vehicle? How do you pay for it?" said Rebecca Lindland, an auto industry analyst for the consulting firm IHS Global Insight.

A group of senators led by California Democrat Dianne Feinstein were pushing an alternative version that would require consumers to trade up for more fuel-efficient cars and trucks to qualify. They complained that even a 2009 Hummer H3T, which gets 14 mpg in city driving and 18 mpg on the highway, could qualify for the incentives under the House bill.

Under Feinstein's plan, a passenger car owner's trade-in would need to get 17 mpg or less to qualify and only new passenger cars getting at least 24 mpg would be eligible. Owners could receive a $2,500 voucher for a new car that gets at least 7 mpg more than their old car. The voucher would increase to $3,500 for new cars with a 10 mpg improvement and $4,500 for new cars with a 13 mpg increase in fuel efficiency.

 

Yeah, this is how he plans to pump more money into the auto industry. Even with the $4500, I still wouldn't be able to afford a car that I wouldn't WANT to drive.


There is a catch to it though. To get the full $4500, your new vehicle has to get better mileage than your old vehicle by 10 MPG. 10 MPG! Basicly, you have to trade in your Mustang GT, for a prius. And newer cars would qualify as "clunkers" also. If they get 17 MPG or less, they are considered a "clunker".

F-them. They can have my "clunkers" when I'm dead. Not a moment before. My "clunkers" will last longer than any of their "fuel efficient" vehicles, and cost less to maintain, as well as less to repair. This bill is NOT good for the economy IMO. This will promote going out, trading in their car thats paid for, and buying another car that they can't afford anyway. Just like ARM's were "good".

 

well if this worked at a buy here pay here then cool. but i doubt it so theres no help for me.

 

What sucks is if you have a new..less fuel efficient vehicle that you wanna trade in, they are gonna beat up the trade-in value that it wont be beneficail if you owe anything. Besides they dont put mileage rating on the diesel that I want

 

This is just part of a slow process of eliminating older vehicles that has been going on for years

 

Lipstick on a pig. I dont care if you call it ice cream, im not swallowing bullshit.

 

The only thing that bill will do is drive up the prices for used auto parts. Making it even harder to find what your looking for,.. and then paying a premium for it.

(Sigh)

Obama is seems more and more like an anti-christ communist.

I havent bought a brand new vehicle in 12 years. And I more then likely will NEVER buy a brand new vehicle for the rest of my life. Not when I can buy one with less then 10k on the clock at 30% discount and have a near new car with the same warranty. A new car or truck is a waste of money in my opinion. They just cost too much for the average working man with very little return on your investment. This does nothing to help the auto industry I know,.. but when inflation has surpassed what the average working man can afford,.. then thats what they get.

This cash for clunkers bill will not make me buy a new car or truck. Just make it harder for me to get affordable parts that I need for older cars I want.



Hurst

 

But, but....we must support the UAW who somehow are now part owners in Chrysler and GM and somehow got moved ahead in line in front of the primary shareholders. I really want to kick in $4500 of my tax dollars so someone can go buy a new car...something I haven't done myself since 1974. This all sounds like Community Reinvestment Act only for cars. We all know how well the CRA worked out.

Uncle Dirt told you not to vote for this idiot with his idiot groupies.

 

Well, ups and downs to the whole thing IMO. How much pollution does the actual production process for new vehicles produce? Im sure its a lot more than a car that has only produced emissions since say, oh, the mid 80's. If everyone drove an old car, even ones with shit mileage, we would probably still have less polution. How much more pollution is there when factories are churning out cars to people that buy new ones every three years? You have the accumulated emissions from their previous cars PLUS whatever it takes to produce their new ones.

As for the ups, when you have people like me, I have a 2002 GT with 140k on it. I still owe 6k. Im so upside down its not even funny. I was going to trade it in not that long ago and the dealership was going to give me $1500 for it. This program might benefit me for a short time period until I can start making enough money to go out and buy the $1000 fox mustang that I want to drive with all the parts I need to make it run and look good. Some way though someone will take an idea that seems good and then bastardize it beyond recognition of what the original idea might have been.

 

yeah we have an late model 2006 kawasaki zzr600 that we bought in 07 and we still owe like $6700.00 on and the sticker price was like $7000. with all the other bills and how the economy took a shit we have not been able to pay any more then the min. and we're screwed on an inflation rate as well cuz it was not financed but got approved for a credit card with the spending limit of the price of the bike. we cant even trade the thing in an upgrade cuz of the aomunt of money owed, its shity condition, and its value droped down to like $1500. 2 grande if it was in perfect condition.