Cash for Clunkers Program
Congress approved a cash for clunkers program on Thursday which provides goverment incentives between $3500 and $4500 to citizens who trade vehicles for more fuel efficient ones. The bill is supposed to reduce dependence on foreign oil, help protect the environment, and prop up the ailing and failing US Auto industry.
Hybrid vehicles are definitely an option for consumers hoping to get these government funds, but they are not a requirement. Car owners get a voucher for $3500 if they trade a vehicle getting 18mph or less for one getting at least 22mpg. If the fuel mileage difference grows to 10mpg, the voucher grows to $4500. Similarly, owners of SUV, trucks, or vans getting 18mpg or worse rececive a voucher for $3500 for trading for a new vehicle getting 2mpg or better. It grows to $4500 if the new vehicle gets 5mpg better.
If a consumer has a vehicle that is worth more than $3500 to $4500, obviously this program will not help. It was intended to target vehicles made in 1984 or earlier. Not only is the fuel mileage an issue, but these cars are much dirtier polluters than some of today’s hybrid cars or even the standard IC engine cars classified as ZEV – or Zero Emissions Vehicles.