Lots of news these days about the success of the U.S. "cash for clunkers" law.
Back in late June, President Barack Obama signed into law the "cash for clunkers" provision. As is sometimes the case when laws are being drafted in the United States Congress, the "cash for clunkers" provision was written into and became part of a totally different piece of legislation. The way this works is that members of the House of Representatives and the U.S. Senate add or insert language into legisation which is already making its way through Congress. The reason for this tactic is that members especially like legislation which has a very good chance of passing and being signed by the President.
If you can believe it, as noted by the Associated Press, the "cash for clunkers" language was attached to "a measure keeping the wars in Iraq and Afghanistan from running out of money". The "cash for clunkers" legislation is no small potatoes, as it provides $1 Billion USD in funding.
Clunker qualifications:
Here are the basics:
• Vouchers of either $3,500 or $4,500 will be given to people who trade in an older vehicle to buy a new one.
• The trade-in, or clunker, must be no older than 25 years, have average gas mileage of less than 18 miles per gallon, and have been owned by the seller for at least a year.
• The new car must cost less than $45,000 and get more than 22 mpg. To get the higher voucher, the new vehicle must also average 10 more miles per gallon than the old one.
• Trucks—SUVs, pickups, and minivans—have different rules. An improvement of at least 2 mpg between the old and new vehicles qualifies for $3,500; 5 mpg or more entitles buyers to $4,500.
• There are no income limits on voucher recipients, nor restrictions on where the new cars are made.
The program came into effect on July 27/09 and has been so succesful that last Friday, July 31/09, the program was deemed to have run out of money. Wow, $1 Billion--gone just like that.
Anyway, American consumers need not fear. Last Friday, the House of Representatives passed a new meausure adding $2 Billion to the program. The legislation is now before the Senate for consideration.
I will keep you posted.
