UPDATE:
BREAKING: House, Senate reach terms on 'Cash for Clunkers' program - but only with $1B in funding
According to The Detroit News, the House and Senate came to terms late last night on a $1 billion 'cash for clunkers' initiative. Part of a larger $106 billion wartime spending bill, the program is not yet law, as the finalized bill must be passed by Congress (it is expected to be voted on next week) and signed into law by President Obama.
Under the terms of the compromise, vouchers worth up to $4,500 would be distributed to those who turn in old vehicles. The program's $1B backing figures to be well short of the $4B it is estimated to cost, meaning that the funding is expected to run out after September 30, the end of the fiscal year. As the theory goes, getting the program approved was the first big step – the DetNews says that key supporters believe that additional funding could be agreed upon subsequently.
As you may recall, the House approved the measure earlier this week, but there were reports of some significant troubles in the Senate where funding and mileage requirements were concerned. In the end, the same mileage figures were reportedly agreed upon, meaning vehicles that return 18 mpg or less in combined city/highway are eligible to turn in their vehicle for a cash voucher. If the new car replacement achieves at least 4 mpg better, a $3,500 voucher would be awarded, and if the new car achieved at least 10 mpg more, the credit would be $4,500. Trucks figure to be a bit different, however, with replacement vehicles needing to net at least 18 mpg, with figures at least 2 mpg better than the soon-to-be-scrapped turn-in. In order to receive the full $4,500 voucher, however, truck buyers' new vehicle would have to improve their fuel economy figures by at least 5 mpg.
The U.S. House approved the "cash for clunkers" legislation earlier today, paving the way for consumers to snag up to $4,500 for trading in their older vehicles for new, more fuel efficient transport.
The bill, which passed 298-119, drew overwhelming support from automakers, local business groups and dealers who claimed the passage could boost sales – further aiding GM and Chrysler's "reinvention" – during the economic downturn.
Although politicians and pundits are sure to weigh-in on the merits of the bill, the specifics appear clear: if your car gets 18 mpg or less and you trade in for a new vehicle the achieves at least 22 mpg, you receive a $3,500 voucher, or $4,500 if the mileage of the new vehicle is 10 mpg higher than your previous heap. SUV, pickup truck and minivan buyers are eligible for a $3,500 voucher if their vehicle gets at least two mpg higher than their trade-in and $4,500 if the vehicle gets five mpg more than their older model. The vehicle has to have been insured for the last year and there is no trade-in value beyond the voucher. The program is also available for leases. Dealers are required to provide proof that the vehicle (1984 MY or later) has been crushed or shredded, and the government estimates that around 25 million vehicles are eligible.
[Source: AP | Image Source: Theo Heimann/Getty]
courtesy of our buds at autoblog.
Hmm, i can't find definite numbers for the SVO, though it does fit into the 1984 model year or older.
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