‘Cash for Clunkers’ program introduced in U.S. House

WASHINGTON, D.C. – House Bill 1550, the Consumer Assistance to Recycle and Save (CARS) Act, has been introduced by U.S. Rep. Betty Sutton, D-Ohio, that will offer $3,000 to $7,500 vouchers to owners of vehicles that are at least eight years old to purchase more fuel-efficient vehicles, an incentive that is only available to consumers who purchase North-American-built vehicles.

Princeton University’s Dr. Alan Blinder, in a New York Times article published in 2008, referred to this policy option as “Cash for Clunkers” – government payments to remove older, less-fuel-efficient or high-polluting vehicles from America’s highways.

The $3,000 to $7,500 vouchers are based on miles-per-gallon, and vary depending on where they were built. To promote American cars built domestically, cars built in the United States must get at least 27 miles per gallon on the highway, while those built in Canada or Mexico must get at least 30 miles per gallon to qualify for the program.

The Automotive Service Association (ASA) says that it supports a Cash for Clunkers Program if it includes these following important points:

• A vehicle repair option for consumers.

• Programs should be administered by the states.

• Vehicle participation should be tied to emissions and improving air quality.

•  Repair cost allowances should be sufficient to address emissions repairs.

For additional information visit ASA’s legislative Web site at www.TakingTheHill.com.