Will “Cash for Clunkers” Work?by Tim Manni
Lawmakers are considering a bill introduced by several U.S. Senators aimed at reducing our oil dependency and green house gas emissions. The bill known dually as the “Cash for Clunkers” and the “Vehicle Scrappage” Bill, provides consumers with a cash voucher when they trade in their fuel-inefficent vehicle, or clunker.
While environmental groups like the American Council for an Energy-Efficient Economy (ACEEE) are praising the initiative, another group of Americans are staunchly opposed. Vintage automobile collectors are up in arms that this bill could spell the end for the classic, yet gas-guzzling, cars they love and restore. While the bill isn’t specifically aimed at removing vintage vehicles from the road, they certainly aren’t exempt.
With the inauguration of a new Congress just around the corner, this bill will get a fresh set of eyes for consideration:
“This bill will help address that [fuel efficiency] problem. It will create a voucher program to reimburse drivers who trade in their old cars, trucks and SUVs with a coupon of $2,500 to $4,500, depending on the fuel efficiency of the purchased car. If enacted, this bill would be an important part of helping getting America’s struggling automobile industry back on its feet – and help consumers who are concerned about covering the cost of buying a more fuel efficient vehicle. I’d like to thank my colleague Senator Salazar for his leadership in helping to craft some of the bill’s key concepts,” Senator Feinstein added.
“In my opinion this is the ultimate win/win for buyers, dealers, and the auto makers,” wrote CNBC’s Phil LeBeau.
READERS: In your opinion, is this program a win/win, or a waste of time?