Today‘Cash for clunkers’ still in park
Rules still being worked out for federal car program that gives consumers up to $4,500 to buy fuel-efficient vehicles.
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Article RatingIn an effort to both reduce air pollution and boost fuel efficiency — hopefully stimulating the auto industry in the process — President Barack Obama last month signed the so-called “cash for clunkers” bill into law.
But that program, called CARS, or the Car Allowance Rebate System, which officially started Wednesday, remains idle.
The National Highway Traffic Safety Administration is still working on the rules that will govern it, such as how and how fast car dealers will get paid by the federal government for taking in high-emissions cars and having them destroyed.
As required under the law, the NHTSA has 30 days from the signing of the bill — June 25 — to get the paperwork done, so CARS is expected to become effective by the end of the month.
The program essentially offers owners of older vehicles government vouchers for trading in their gas guzzling jalopies and buying new, more fuel-efficient vehicles.
“I think right now it is probably helpful to have additional incentives or reasons for people to overcome purchase fears because of the negative economy,” said Greg Stevenson, general manager at Family Ford in Carlisle.
Program criteria
To be eligible for the trade-in incentive, your clunker has to meet certain criteria.
For one, it has to be less than 25 years old and have a combined fuel economy rating of 18 miles to the gallon or lower when it was new.
Car owners could get a voucher worth $3,500 for trading that vehicle in for one getting at least 22 mpg. The value of the voucher would grow to $4,500 if the mileage of the new car was 10 mpg higher than the old vehicle.
Owners of sport utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new crossover, truck or SUV gets at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV was at least 5 mpg higher than the older vehicle.
The trade-in must also be in drivable condition and have been registered to and insured by the same owner for a year prior to applying for the program.
“We’ve had a good deal of initial interest in it,” said Stevenson.
However, he said, there is still not a lot of clarity about the details of the program.
“It does make sense. It’s just a questioning of figuring out how it will play out,” he stated.
A total of $1 billion has been set aside by the government for the program. It will run until Nov. 1 or when the money has been spent. Vouchers will be issued on a first come, first served basis.
“I think you’re going to see a bigger push at the beginning of August, once things are solidified and rules are in place,” said Brent Hair, general manager at Graham Motor Company in South Middleton Township, who noted that there have been a few inquiries so far. “I think it has the potential to boost sales.”
For more information about the program, visit www.cars.gov.
