- Legislation will help local auto dealers, while reducing dependence on foreign oil and air pollution -
Washington, DC – This week, Congressman John Hall voted in favor of a "cash for clunkers" program that will provide consumers who trade in their older, gas-guzzling vehicles with vouchers worth up to $4,500 to help pay for new, more fuel-efficient models.
"Having the opportunity to save 80,000 barrels of motor fuel every day, the 'Cash for Clunkers' program is an important step to mitigating our dependence on foreign oil, reduce our greenhouse gas emissions, and help people save at the pumps," said Congressman Hall.
The legislation also provides a boost to auto dealers at a much needed time. Similar programs in European countries anticipate that 400,000 to 500,000 more new vehicle sales will occur that would not have occurred without the stipend. Up to one million people per year may take advantage of the Program in the U.S. according to estimates.
The legislation provides rebates for cars and trucks in the following four categories:
- Passenger Cars: The old vehicle must get 18 mpg or less. New vehicles with improvement of at least 4 mpg will get a $3,500 voucher. New vehicles with improvement of at least 10 mpg will get a $4,500 voucher.
- Light-Duty Trucks: The old vehicle must get 18 mpg or less. New vehicles with improvement of at least 2 mpg will get a $3,500 voucher. New vehicles with improvement of at least 5 mpg will get a $4,500 voucher.
- Large light-Duty Trucks: The old vehicle must get 15 mpg or less. New vehicles with improvement of at least 1 mpg will get a $3,500 voucher or trade-in of a “work truck.” New vehicles with improvement of at least 2 mpg will get a $4,500 voucher.
- Work Trucks: The old vehicle must be a pre-2002 model. New vehicles in the same or smaller weight class will get a $3,500 voucher.
The bipartisan legislation is supported by a broad coalition that includes the AFL-CIO, UAW, car dealers, the U.S. Chamber of Commerce and the National Association of Manufacturers.
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