Update: Cash for Clunkers legislation to pass later this week

Many new car shoppers are holding off on purchasing a new vehicle until Congress passes the new ‘Cash for Clunkers’ bill, which would  give consumers cash vouchers of between $3,500 and $4,500 if they trade in their cars for newer, more fuel-efficient vehicles.

Instead of writing three different posts about the latest updates on the Cash for Clunkers bill, we’re going to throw together a little update for you. Last we heard, the House and Senate had reached an agreement to set aside $1 billion for the program.


U.S. House expected to pass new Cash for Clunkers Bill: According to Automotive News, the House is expected to pass a scaled-back version of the bill today. The fleet modernization legislation that passed the House last week contained between $3.5 billion and $4.5 billion in federal consumer incentives. The program was to last a year. The scaled back version introduced last week will provide funding for three months. The Congressional Budget Office has estimated that 600,000 cars would be sold with $4 billion provided.

Feds say that Cash for Clunkers may take a while, be patient: Federal regulators are telling potential car buyers not to rush out for the cash when Congress completes the bill later this week. “People need to be patient. Creation of a whole new program like this does take time,”  said Rae Tyson, spokesman for the National Highway Traffic Safety Administration. – Detroit News

GM CEO says “Cash for Clunkers” could provide a boost for new -car-sales: Fritz Henderson said that the “cash-for-clunkers” legislation could provide a boost for new sales. “We are seeing stability, albeit at anemic levels,” he said. “Still, better to not be falling, and the levels we are seeing are generally consistent with the assumptions in our plan.” – AutoWeek

– By: Omar Rana