We (the U.S. government) want to buy your gas guzzler.

Is there anything this government can't do for you?

This is the article for those who do not wish to visit the link:

May 06, 2009 -- New program to provide $4,500 voucher for fuel-efficient cars
Washington, D.C. is set to take a cue from Europe in adopting its own version of a "cash for guzzlers" program.

The central idea is to allow people to take an old, nearly worthless car and receive a cash bounty of up to $4,500 toward buying a new fuel-efficient vehicle.

Under the proposed system, the full amount of the voucher would phase in based on the miles per gallon your next car purchase gets.

Say you start from a baseline of 18 mpg on your current vehicle and get a new car that gets 22 mpg. Then you'd get a $3,500 voucher. You're only eligible for the full $4,500 voucher if your next purchase gives you at least 10 mpg more than your old vehicle.

There will be a separate program for SUVs (you'll need a 5 mpg increase to qualify); one for light-duty trucks (2 mpg increase); and one for work trucks. The latter is a real reversal in policy; small business was previously given tax subsidies to buy the most fuel-inefficient trucks it could!

Talking about legislation that's in progress is always dangerous. But there's a lot of momentum for this and a general consensus on the broad outline that seems to be agreeable to most politicians in D.C.

MacTheKnife's blog | login to post comments

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Submitted by brianpasch on Thu, 05/07/2009 - 8:48pm.

Whatever the name of the final bill is called, my friends who are car dealers are crossing their fingers. For them the Cash for Guzzlers would be a much needed shot in the arm.

If the numbers are correct, over a million cars will be sold. I just wonder how long this voucher system will prop up sagging sales when consumers are still cautious about taking on new debt.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.