President Obama Signs Cash for Clunkers Legislation
June 24, 2009
WASHINGTON -- It's official. President Obama has signed the Cash for Clunkers legislature that provides a financial incentive to consumers who ditch their old gas guzzler for a new fuel-efficient model.
The author of the legislation, Ohio Democratic Rep. Betty Sutton, was quoted by the Cleveland Plain Dealer as saying the measure would "improve our environment and help shore up the jobs of millions of Americans who depend upon our auto and related industries for their livelihood."
The Car Allowance Rebate System (CARS) will be administered by the National Highway Traffic Safety Administration, which will issue credits through car dealers of $3,500 or $4,500 to buyers of fuel-efficient cars who turn in older, gas-guzzling vehicles to be scrapped.
Rules for the legislation are being written, which likely will take a month.
Posted by Michelle Krebs at 3:20 PM under Companies , News | Comments (3) | digg this | Seed Newsvine
What an ill conceived program. Full of flaws. If you have a 10 year old car that gets a combined 19mpg and are ready to buy one getting 31mpg you have no incentive. But, if you have one getting 14 and buy one with 24 you get $4,500.
What if you have an SUV and want to buy a car getting +15mpg more.
I think it is unlikely it is going to attract many buyers. If I were a dealer I would hope so as well. Because if it is widely used, their sales will be delayed until the program kicks in 6 to 8 weeks down the road.
Everyone needs to remember this in November 2010. So many members of congress are lawyers who have become professional politicians. They lack the real world experience to fully evaluate the impact. I'm not sure they care. They are more about saying they did something than about than about if that something made any difference.
Posted by: johnh77379 | June 24, 2009 at 5:30 PM
It will be interesting to see the numbers, month to month and final, once this half measure goes into effect. Virtually all of the comments here on AO and elsewhere are dissenting at best.
Posted by: fulcrumb | June 25, 2009 at 9:22 PM
Y'know, Edmunds ought to set up a "web pool" for the CARS program. those whose correctly guess the number of vehicles sold within say, 25,000, using the CARS, would win a T-shirt, coffee mug, mouse pad, something. Maybe a $3500 clunker.
What does CARS stand for again? Congress Aint Really Serious?
Posted by: fulcrumb | June 25, 2009 at 9:47 PM