The Seattle Times featured a front page article today about a bill the House approved on Tuesday called the “cash for clunkers” bill. This new bill aims to “boost” new car sales by giving customers the opportunity to turn in their non-environmentally friendly gas-guzzlers in exchange for up to $4,500 toward more eco-friendly and fuel-efficient cars. This bill is in response to months of poor auto sales, 34% lower than a year ago to be exact, as well as the ever increasing desire to have more and more fuel-efficient cars on the highways. Used car sales however are not down as much as new car sales. Auto-Space.com, which prides itself on selling used cars online in a way that puts the customer in charge, is a good example of this.
In addition, the House hopes the “cash for clunkers” bill will stimulate sales and get the car industry on its way back to its original glory despite the recession. The bill aims to generate about 1 million new auto sales. “The U.S. industry is expected to generate about 9.5 million vehicles sales in 2009, compared to more than 13 million in 2008 and more than 16 million in 2007. Car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The old vehicle would be disposed of rather than resold. ” Although the yearlong program is costly, estimated around $4 billion, the effects this bill will have on the environment may be well worth it. By getting rid of gas guzzling cars, and having more fuel-efficient cars overall, we can reduce our carbon footprint significantly.
Take a look at the article here
