Dollars For Clunkers Goes to Senate

On June 9th, the House approved their HR-2751 Cash for Clunkers bill that aims to boost new auto sales by encouraging consumers to trade in their gas-guzzling cars and trucks for vouchers worth up to $4,500. The vouchers can be used to buy or lease a new more fuel-efficient vehicle.

Meanwhile, an almost identical bill seems to have S-1200 Cash for Clunkers has stalled in the Senate. To help break the stalemate, a coalition of senators led by Dianne Feinstein (D-Calif.), who sponsored the original and much tougher Senate version of the Cash for Clunkers bill, introduced an alternative measure that would require greater fuel efficiency than the House bill.

To qualify for a voucher under the alternative Senate plan, consumers would have to trade in a car rated at 17 mpg or less and purchase a new car that gets at least 24 mpg. Consumers could receive a $2,500 voucher for a new car that gets at least 7 mpg more than their old car, $3,500 for a new car with a 10 mpg gain in fuel efficiency, and $4,500 for one with an increase of 13 mpg or more.

Source: About.com