- Ford, Hyundai, Audi Gaining Interest
- Cadillac Converj Smart Extension of Volt
- Chrysler Makes Smart Call Staying Unplugged—For Now
- China Growth Shows GM Good Fortune
- Inflatable Seat Belts Aimed At Second Row Safety
- Do You Buy Marchionne's Turnaround Plan?
- October Shows Auto Rebound Will Be Slow
- How Mulally Got Ford Back in The Black
- Green Car Incentives Are Just Starting To Roll
- GM Touts Progress, Serves Up Details on Latest Refunds
MOST SHARED
- Pharma & Social Media
- CNBC TRANSCRIPT: Warren Buffett & Bill Gates - Keeping America Great
- Cities With the Most Home Price Reductions
- Warren Buffett and Bill Gates Share Their 'Optimism' With Eager Columbia Business Students
- Microsoft's Bill Gates Praises Apple's Steve Jobs For 'Saving the Company'
- Disney Profit, Sales Top Street Forecasts; Shares Jump
- Warren Buffett's $100,000 Offer and $500,000 Advice for Columbia Business School Students
- Is Euphoric Market Ignoring Warning Signs?
- China Fourth Quarter Growth Could Hit 10%: Official
- Obama to Outline Strategy to Boost US Exports to Asia
- EXCERPTS and IMAGES: Warren Buffett & Bill Gates - Keeping America Great
- Microsoft's Bill Gates Praises Apple's Steve Jobs For 'Saving the Company'
- Gold Is a Bad Inflation Hedge—Like Oil: Stock Picker
- Intel's Andy Bryant Offers An Explanation
- US 'Actively Working' on Weaker Dollar: Fund Manager
- Options Boil on Biotech Buyout Rumors
- Warren Buffett's $100,000 Offer and $500,000 Advice for Columbia Business School Students
- Activision Blizzard's "Modern Warfare 2" Sales Break Records
- 5-Star Manager's 5 Stocks for Changing Markets
- Obama to Outline Strategy to Boost US Exports to Asia
- Friday May See 'Risk Trade' Stalling; Dollar in Focus
- Job Market Politics to Keep Interest Rates Low
- AIG, Symbol of Crisis, Watches Its Stock Zoom Back
- Disney Profit, Sales Top Street Forecasts; Shares Jump
- Bill Gates Praises Apple's Jobs for 'Saving the Company'
- Cities With the Most Home Price Reductions
- Is Euphoric Market Ignoring Warning Signs?
- Video Game Sales Plunge, but Have They Hit Bottom?
RSS FEED
Behind The Wheel
![]() |
iStockphoto |
Congress is considering a "Cash for Clunkers" bill that would give people a $4,500 voucher to trade in their "gas guzzlers" for certain fuel efficient models.
In my opinion this is the ultimate win/win for buyers, dealers, and the auto makers.
• Buyers get help in buying a newer model that will get better mileage, and therefore help them save money. Granted, $4,500 ain't exactly winning the lottery, but it's something. With the economy in the tank, every little bit will help a lot people make the numbers work to buy a car.
• Dealers benefit by having a new incentive program spur traffic. Yes, consumer confidence is still the main reason sales are depressed, but these vouchers could spark more showroom traffic and ultimately sales.
• Auto makers would be helped by having a program that could push demand, especially for more fuel efficient models. With cars lasting longer, even gas guzzlers are holding up. Lately, that's made people say, "ok, I may not like this boat I'm driving, but it does the job for now."
• The environment would also get a break as this program could take tens of thousands gas guzzlers off the street. By one estimate, the program could save 40,000-80,000 barrels of motor fuel a day at the end of the offer.
So what's the catch? There are several.
• Your gas guzzler has to get fewer than 18 mpg.
• The new or used model you are buying has to exceed the federal fuel economy rating for its vehicle class by at least 25%
• The car you are buying can not cost more than $45,000
• The new or used ride must be no older than a 2004 model.
And depending on whether you are buying a new or used model, and the year of the gas guzzler you are trading in, the amount of your federal voucher or tax credit would vary.
For example, some new people trading in a newer or more recent car will qualify for $4,500. By comparison, people ditching guzzlers made before 1998 may only get $2,000. Regardless, the amount of the voucher, people will get something.
So there you have it. You can trade in the beast, and save some money in the process.
_____________________________________
Click on Ticker to Track Corporate News:
- Ford Motor [F
Loading...
()
]
- General Motors [GM
Loading...
()
]
- Nissan [NSANY
Loading...
()
]
- Honda Motor [HMC
Loading...
()
]
_____________________________________
Questions? Comments?










