Cash for Clunkers Up for Votes This Week
June 16, 2009
The so-called Cash for Clunkers legislation is up for a vote in the U.S. House of Representatives Tuesday with a Senate vote to follow shortly. If passed, the measure should be in effect sometime between July and September.
The legislation, which allows consumers to receive vouchers worth up to $4,500 on their trade-ins of clunkers for more fuel-efficient vehicles, may generate added sales of about 500,000 new vehicles this year, said Jesse Toprak, executive director of Industry Analysis for Edmunds.com, parent of AutoObserver.com.
U.S. new car sales have been running at an annualized rate of under 10 million units all year. Similar measures in Europe have helped boost sagging sales.
Passage of the legislation, while expected this week, will require at least 30 days of rule-making by the National Highway Traffic Safety Administration, which will run the program, and planning with car dealers as to how to administer the vouchers to buyers.
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