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