House reaches agreement on ‘cash for clunkers’ bill, Congress still has to approve

U.S. House members and the Obama administration have reached an agreement for a “cash for clunkers” bill that would offer one million new car shoppers up to $4,500 each in an effort to boost auto sales in the United States.

New cars would have to average at least 22 mpg to qualify for a $3,500 voucher. If the model gets 10 mpg better than the old car, the voucher will be increased to $4,500. Trucks would have to average at least 18 mpg and get at least 2 mpg more than the old model for a $3,500 voucher. 5 mpg better will get you $4,500.

The voucher will be available for only one year and will be offered to one million new car shoppers.

The bill still has to pass Congress. A price tag on the bill was not immediately made available.

– By: Omar Rana

Source: Free Press