The U.S. House of Representatives passed a bill today that would give new car buyers up to $4,500 to trade in their old clunkers.
The bill sets aside 4 billion dollars for electronic vouchers that would go to new car car buyers who get rid of their old gas guzzlers in favor of more fuel efficient cars.
The bill passed the House by a large margin of 298-119, with two abstaining.
“The auto industry is going through a tremendous restructuring,” said
Rep. Sander Levin, D-Royal Oak. “If there is not increased demand, that
restructuring cannot succeed.”
According to the Detroit Free Press:
"The plan does have several hurdles that will keep some potential
buyers on the sidelines. The clunker being traded in will be crushed or
recycled, meaning it will have no trade-in value beyond the voucher. Of
the 25 million vehicles estimated to qualify for the voucher, most will
be trucks: even 15 years ago, only five models of midsize sedans
managed just 18 m.p.g.
To ensure the vehicles being crushed
are actually coming off the road rather than cinder blocks, the
trade-ins have to have been registered and insured for at least the
past year."
The Senate has yet to act on a similar bill.
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