Senate Passes Cash For Clunkers Bill.
June 19th, 2009 by SIOTI Blogger
Senate Passes Cash For Clunkers Bill.
The Senate has approved a $1 billion program to give vouchers to consumers who trade in their gas-guzzling clunkers for more fuel-efficient models — a move that dealers hope will revive slumping auto sales. Congressional leaders attached the legislation to a $106 billion spending bill to fund troops in Iraq and Afghanistan. The spending bill passed by a 91 to 5 vote but not before some Republican lawmakers unsuccessfully sought to strip the measure from the bill.
“Let’s not add a billion dollars of unnecessary debt,” said Sen. Judd Gregg (R-N.H.) during the Senate floor debate.
Dealers, unions, trade groups and automakers have been lobbying for months for the legislation in hopes that it would stop the streak of dismal U.S. auto sales. “The simple fact is that we need to get Americans into car showrooms, and this is the bill that will do it,” Rep. Candice S. Miller (R-Mich.), a co-sponsor of the legislation, said in a statement. The program offers vouchers of up to $4,500. The bill now moves to the White House for the president’s signature. President Obama has repeatedly encouraged Congress to pass a cash-for-clunkers bill.
Consumers would be able to start using the vouchers as soon as the National Highway Traffic Safety Administration finalizes the rules — a process that must conclude within 30 days of the president’s approval.
Here’s how the program works:
Under the program, trade-in vehicles must be 1984 models or newer and have average fuel economy of no more than 18 miles per gallon. The new car or truck must get better gas mileage than the one that was scrapped. The payoff amount increases depending on the difference in the fuel efficiencies of the old and new cars. For instance, a new car getting at least 4 more miles per gallon than the old car will be eligible for a $3,500 voucher. Whereas a new car getting at least 10 more miles per gallon would get a $4,500 voucher.
To guarantee vehicles are actually roadworthy — and not just sitting on cinder blocks — trade-ins must be registered and insured to the same owner for at least a year.
Tags: "Cash For Clunkers Bill", "Cash For Clunkers", "Show It Or Tow It", showitortowit.com
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