Owners of gas-slurping vehicles will soon get an offer President Barack Obama and a nation of auto dealers hopes they won’t refuse.
It’s a promise to knock up to $4,500 off the price of a new fuel-efficient car if the owner trades in their old wheels.
Not just car owners and a recession-battered industry will benefit from the “cash for clunkers” program, supporters say. So, too, will the environment as older pollution-spewing models of cars are taken off the roads..
“This will give consumers an incentive to trade in their older-model gas-guzzlers for new, fuel-efficient vehicles,” said U.S. Rep. Jay Inslee, one of its creators. “It will save consumers money at the pump and at the dealership, and will cut down on carbon pollution going into our air and water.”
Opponents contend auto maker profits are the driving force behind the legislation.
Todd Myers, environmental director of the Washington Policy Center, said if helping consumers and curbing air pollution are in fact important goals, people should be able to buy
less-costly used cars that get high mileage with the vouchers.
They can’t.
“This bill does not focus on improving the miles per gallon rate of automobiles. It is a very poor way of reducing CO2 (carbon dioxide). It focuses on selling new cars,” he said.
Congress stapled this Car Allowance Rebate System and $1 billion in start-up money into a larger federal bill that funds the wars in Iraq and Afghanistan. Obama signed the legislation Wednesday.
The program is authorized to start July 1. However it may be a few days later before it is active. It is set to end Nov. 1.
Most car dealerships are expected to participate. You can find out for sure by calling ahead or checking a Web site the federal government intends to maintain.
Several car makers already are advertising online of their plans to be part of the program. Some are hinting of additional discounts for qualified shoppers.
Not every trade-in will earn a car owner a voucher.
Here are some of the key rules:
Trade-in cars must have an Environmental Protection Agency mileage rating of 18 or fewer miles per gallon. There’s an online database available to learn your vehicle’s rating.
The new car you buy or lease can cost no more than $45,000. Its fuel economy determines the amount of the voucher. The law requires a new car be rated to get at least four miles per gallon more than the trade-in. In other words you can obtain a $3,500 voucher if the new car is rated at at least 22 mpg. Pick a vehicle that gets 10 mpg higher than your old one and the voucher will be worth $4,500.
Rules for small trucks and sport utility vehicles are slightly different. The new truck or SUV must get a minimum of 18 mpg and be rated at least 2 mpg higher than the trade-in to qualify for $3,500. Those that are at least 5 mpg better than the clunker are worth $4,500.
If you qualify and are ready to buy, dealers will give a credit at the time of purchase and get their payment electronically from the government. Vouchers are limited to one per person.
Finally, the dealer must scrap your trade-in. They can sell it off in parts, except for the engine block and drive train, and can keep any money they make.
Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com.
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