Feds to offer cash for your clunker

By Layer 8 on Thu, 01/15/09 - 12:22pm.

The government is trying to stimulate a lot of things, the economy, Wall St., the mortgage industry, and now it wants to motivate you to get rid of your clunker of a car for the good of the country (and the moribund car industry).

A "Cash for Clunkers" measure introduced this week by US Senators Dianne Feinstein (D-Calif.), Susan Collins (R-Maine), and Charles Schumer (D-N.Y.) would set up a  national voucher program to encourage drivers to voluntarily trade in their older, less fuel efficient car, truck or SUV for a car that gets better gas mileage.

Car owners could get only one voucher in any three-year period. Dealers and scrap recycling companies could get payments of $50 per vehicle. And the overall program could cost as much as $2 billion a year.

Should the bill pass, the "Cash for Clunkers" program would reimburse drivers with a credit of $2,500 to $4,500 for drivers who turn in fuel-inefficient vehicles to be scrapped and purchase a more fuel efficient vehicle.

According to the senators the program could save between 40,000 to 80,000 barrels per day of motor fuel by the end of the fourth year.

The bill could also educe greenhouse gas emissions between 6.6 million metric tons to 7.6 million metric tons, or the equivalent of removing 1.1 million to 2.2 million vehicles from the road in one year. It should also reduce nitrogen oxides, which cause ground-level ozone (a leading cause of respiratory health problems, like asthma), by 3,043 short tons (2,761 metric tons) by 2013.  All of those promises could come true if an estimated 500,000 to 1,000,000 vouchers are issued per year, the senators said.

The catches:

  • The traded-in vehicles must have a fuel economy of no more than 18 miles per gallon;
  • Auto needs to be in be in drivable condition, and have been registered for at least the past 120 days;
  • The voucher needs to be used towards the purchase of a vehicle that has value of less than $45,000, is model year 2004 or later, and meets or exceeds federal emissions standards;
  • Vouchers could also be redeemed for transit fares for participating local public transportation agencies.

For traded-in vehicles that are model year 2002 and later, drivers would receive a voucher for: The purchase of a new vehicle: $4,500; the purchase of a used vehicle: $3,000; a transit fare credit: $3,000.

For traded-in vehicles that are model year 1999 - 2001, drivers would receive a voucher for: The purchase of a new vehicle: $3,000; the purchase of a used vehicle: $2,000; a transit fare credit: $2,000.

For traded-in vehicles that are model year 1998 and earlier, drivers would receive a voucher for: The purchase of a new vehicle: $2,000; the purchase of a used vehicle: $1,500; a transit fare credit: $1,500.

Layer 8 in a box

Check out these other hot stories:

Air Force: More unmanned aircraft than manned in 2009

Apple's Steve Jobs takes leave of absence

Paybacks: Telescammers to fork over $50 million in restitution

Will bats inspire future micro unmanned aircraft?

Government spends over $30 million to sharpen cyber security saber

Watchdogs bite IRS for continued security lapses

FBI/DOJ warns of economic cybergeddon

Beam up my shape shifting robot Scotty: Layer 8's Best of 2008

Ducks, dorks and deviants: Wackiest stories of 2008

About Layer 8
Layer 8 is written by Michael Cooney, an online news editor with Network World
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
British Airways
FCC’s Video Relay Service (VRS)
General discussions
IP routing
Lance Atkinson
Wireless / Mobile
civilian airspace
federal security
jet engine
language translation
math problems
network security
open source
rocket car
spear phishing
unmanned aircraft
web glitch