Archive for New Legislation
On Thursday President Obama signed into law H. R. 3435 supplementing $2 billion to the National Highway Traffic Safety Administration (NHTSA) of the Department of Transportation (DOT) for the Consumer Assistance to Recycle and Save Program. The CARS (Car Allowance Rebate System) program, or Cash for Clunkers as it has been called, has been extremely successful.
Below is President Obama’s statement:
“I want to thank the United States Senate for acting in a bipartisan way to use Recovery Act funds to extend the ‘Cash for Clunkers’ program. Now, more American consumers will have the chance to purchase newer, more fuel efficient cars and the American economy will continue to get a much-needed boost. ‘Cash for Clunkers’ has been a proven success: the initial transactions are generating a more than 50% increase in fuel economy; they are generating $700 to $1000 in annual savings for consumers in reduced gas costs alone; and they are getting the oldest, dirtiest and most air polluting trucks and SUVs off the road for good. Businesses across the country – from small auto dealerships and suppliers to large auto manufacturers – are putting people back to work as a result of this program. I want to thank Leader Reid and the members of the Senate who moved quickly to extend a program that benefits our recovery and our auto industry while reducing our economy’s dependence on oil.”
So what vehicles are selling? According this CNN report (with data from the National Highway Traffic Safety Administration), the top ten selling cars in the “Cash for Clunkers” program are:
1. Ford Focus
2. Toyota Corolla
3. Honda Civic
4. Toyota Prius
5. Toyota Camry
6. Ford Escape
7. Hyundai Elantra
8. Dodge Caliber
9. Honda Fit
10. Chevy Cobalt
But apparently there are discrepancies on how the vehicles are reported.
In this CNN report (analysis from Edmunds.com), the top selling vehicles are:
1. Ford Escape
2. Ford Focus
3. Jeep Patriot
4. Dodge Caliber
5. Ford F-150
6. Honda Civic
7. Chevrolet Silverado
8. Chevrolet Cobalt
9. Toyota Corolla
10. Ford Fusion
The explanation…
“Edmunds.com uses traditional sales measurements, tallying sales by make and model. The government uses a more arcane measurement method that subdivides models according to engine and transmission types, counting them as separate models.” See the full report at CNN.com
The first billion dollars appropriated didn’t last long. If you were thinking about trading in your clunker, you had better do it soon! Go to CARS.gov for complete program details.
Car Allowance Rebate System (aka Cash for Clunkers) is a GO! CARS.gov is online!
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CARS.gov
CARS.gov published the following “Things to Know”:
- Your vehicle must be less than 25 years old on the trade-in date
- Only purchase or lease of new vehicles qualify
- Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
- Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
- You don’t need a voucher, dealers will apply a credit at purchase
Visit the CARS.gov website for more information about the program.
Cash for Clunkers ready for President Obama – How to turn $172 into $4500
Posted by: | CommentsOne way to get legislation through Congress is to tag it to an important Appropriations Bill. That’s how the “Cash for Clunkers” made it through the Senate. As part of the final Supplemental Appropriations Act of 2009, it is likely that President Obama will sign this Bill into Law. I blogged about the “Cash for Clunkers” in the past, so here are the final details from United States Senator (Michigan) Debbie Stabenow:
See official press release.
Under the program, consumers may trade in their older vehicles and receive vouchers worth up to $4,500 toward the purchase or qualified lease of a new, more fuel-efficient car or truck. The program will be authorized from July 1, 2009 to November 1, 2009 with $1 billion in emergency funding.
The trade-in vehicles must:
• Be in drivable condition
• Be continuously insured and registered to the same owner for at least one year
• Have a combined fuel economy value of 18 mpg or less (Work trucks must be pre-2002 regardless of mpg)
• Not be more than 25 years old with historic or aesthetic value. These vehicles are valued by hobbyists or are a valuable source of restoration parts.
New vehicles
• The new vehicle must have a manufacturer’s suggested retail price of less than $45,000
• Passenger Cars: The older vehicle must get 18 mpg or less. New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
• Small Trucks and SUVs: The old vehicle must get 18 mpg or less. New small trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old vehicle, the voucher will be worth $4,500.
• Large Light-Duty Trucks: The old vehicle must get 18 mpg or less. New large trucks (pick-ups and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
• Work Trucks: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. Only 7.5 percent of the total funds can be used for vouchers for the purchase or lease of a work truck. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a pick-up or van weighing between 6,000-8,500 lbs.
• The mpg values are EPA combined city/highway fuel economy as posted on the window sticker of new vehicles and can be found at fueleconomy.gov.
Edmunds.com
Will the Chrysler Bankruptcy help pass the “Cash for Clunkers” legislation?
Posted by: | CommentsOne day has passed since America’s 3rd largest automaker, Chrysler filed for Chapter 11 bankruptcy protection. Lawmakers have been working for months to nail down a bill that would help stimulate auto sales.
Timeline:
January 14, 2009 – “Accelerated Retirement of Inefficient Vehicles Act of 2009″ – S. 247
Here is a summary of Feinstein’s, Collins’, and Schumer’s legislation in January:
A measure introduced today by U.S. Senators Dianne Feinstein (D-Calif.), Susan Collins (R-Maine), and Charles Schumer (D-N.Y.) would establish a national voucher program to enable and encourage drivers to voluntarily trade in their older, less fuel efficient car, truck or SUV for a more fuel efficient vehicle. Specifically, the so-called “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. The traded-in vehicles must have a fuel economy of no more than 18 miles per gallon, be in drivable condition, and have been registered for at least the past 120 days. Vouchers could also be redeemed for transit fares for participating local public transportation agencies. The program would operate for four years, from 2009 – 2012, and is expected to encourage the early retirement of up to one million vehicles per year.
In the House of Representatives, a companion bill was proposed by U.S. Representatives Steve Israel and Jay Inslee – H.R. 520:
The Israel-Inslee bill, the Accelerated Retirement of Inefficient Vehicles Act (ARIVA) of 2009 (H.R.520), establishes a federal incentive for the voluntary retirement of fuel-inefficient vehicles from the current pool of about 235 million cars and light trucks registered to private and commercial owners in the United States. It is intended to operate for four years, 2009-2012, and to incentivize the early retirement of up to one million vehicles per year. The legislation provides consumers with vouchers valued between $2000 and $4,500 which can be used towards the purchase of a newer, more fuel efficient vehicle or toward public transit fare.
In March U.S. Representative Betty Sutton introduced her version of the bill – H.R. 1550.
Here is a summary of Sutton’s legislation:
Rep. Sutton’s Consumer Assistance to Recycle and Save (CARS) Act gives consumer purchase incentives for turning in vehicles that are 8 years or older to buy more fuel-efficient vehicles or to obtain a transit voucher. In the legislation, new car purchases that qualify for this incentive must achieve a minimum of 27 miles per gallon on highways, while new trucks must achieve a minimum of 24 mpg for highway driving. The bill provides graduated incentives based on greater fuel efficiency.
This legislation was followed on March 19th by the “New Automobile Voucher Act of 2009″ by Representative Donald Manzullo – H.R. 1606.
CashForClunkers.org
What do you think? Will the Chrysler Bankruptcy help this bill turn into law?
