Cash for Clunkers - Passed By House

Yesterday the House passed a $4 billion bill to motivate consumers to purchase new vehicles by subsidizng their purchase. The "Cash for Clunkers" bill (H.R. 2751) would give vouchers to consumers worth up to $4,500 when they trade in a "gas guzzler" and buy a new car that is more fuel efficient. The legislation now goes to the Senate. President Obama has said he supports such a measure.

The House version of the bill applies to vehicles that average less than 18 mpg combined city and highway driving. $3,500 could be applied to a new light truck or van that was more fuel efficient than the old one by at least 4 mpg or $4,500 if the new vehicle is 10 mpg more efficient.

Vehicles that have not been insured for the past year or that are older than 25 years are not eligible to be traded in for vouchers.

The bill would require dealers to accept the trade-in automobiles on behalf of the U.S. government and arrange for the transfer of any trade-ins to an entity that will dispose of the car by crushing or shredding it. The trade-in may not be, sold, leased, exchanged, or otherwise disposed. The entity responsible for crushing the automobile may sell parts from the car other than the engine block and drive train

You can determine the MPG rating of your vehicle as well as that of a vehicle of interest by visiting http://www.fueleconomy.gov/feg/findacar.htm

As soon as the bill is enacted Bernardi Honda will provide details on the size voucher that your vehicle will be eligable for when trading for the new Honda vehicle of interest to you.

House OKs $4 Billion Cash for Clunkers (CNNMoney)