Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Consumers could receive $4,500 in rebates for turning in gas-guzzlers
The House on Tuesday approved a "cash for clunkers" bill that aims to boost new auto sales by allowing consumers to turn in their gas-guzzling cars and trucks for vouchers worth up to $4,500 toward more fuel-efficient vehicles.
Good question. I don't see where/why used car prices would be affected. In fact I don't see where/why new car sales would be significantly increased either. I don't see much coming out of this at all. Restricting it to dirt-old vehicles was a mistake; there should have been four measures and four only:
A: Does the new car get at least 10 more MPG highway (in areas where highways dominate) or at least 5 more MPG city (in areas where city driving is primary)?
B: Does the new car have a lower EPA emissions rating?
C: Did you go from a truck/SUV to a standard passenger vehicle (automatic MPG increase), meaning you actually traded it in for the vehicle?
D: Did you go from a regular car to a hybrid of whatever model, with a MPG increase of any amount?
If any one of those is "YES", you should be able to claim a tax rebate in the following year for 1/10th the price you bought the new car for, even if your tax debt is zero, you should still be able to get a rebate off of it just like the homebuying credit.
Leases should not be eligible; you don't "own" the car.
Trading in vehicles getting 18mpg or less on a vehicle getting 22 or better mpg may help. The dealership can not resell the vehicle, it has to get crushed. Where I'm living it looks a lot like Cuba or Mexico with all the old cars on the road. Tennessee has no vehicle inspection and many of these cars really aren't road worthy, bad enough half these people don't have insurance so I hope they start trading in their three different color buick lesabre with the spiderweb windshield and coat hanger exhaust for something less deadly.
Used gas guzzlers (think Crown Vics and Caprices) will get the highest amount - $4,500 - voucher the government is offering if you go with a new subcompact car.
Basically any 1984-2009 trucks, utility wagons, and fast cars. Even leased vehicles that will be hard to get out of will be eligible.
I doubt it's going to raise the used car pricing. HOWEVER, I do see the possibility of dwindling supply of used cars due to people using them for the vouchers.
CowboyJohn, funds are being allocated to make the money available.
The idea is not to put these cars back on the street and get rid of higher emiison vehicles as well.The catch maybe in many getting financing that is reasonable since the credit has tighened. manycan't get teh low rates offered by makers now.The 0% is for 'well qualified buyers" meaning higher credit scores.Plus if its for small cars and the deamnd goes up they are not going to come down on MSRP as much.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
