“Cash for Clunkers”

According to Iowa Congressman Bruce Braley, a Democrat from Waterloo, a million American consumers may soon be able to get a "voucher" for up to $4500 if they get rid of a gas-guzzling "clunker" car and replace it with a newer, fuel-efficient model.  (The "voucher" would be like one of those manufacturer's rebates consumers often get to reduce the total sale price of a vehicle.)   

Read the news release from Braley's staff below.

Braley Announces White House-Congress Compromise on “Cash for Clunkers” Program
Braley-introduced proposal to be included in Energy Bill

Washington, DC – Today, Rep. Bruce Braley (D-Iowa) announced that a compromise has been reached between the White House and Congress to include a “Cash for Clunkers” program in the American Clean Energy and Security (ACES) Act.  Braley received the news while visiting the White House this morning with other members of the House Energy and Commerce Committee, which is considering the energy legislation.

In March, Braley introduced the Consumer Assistance to Recycle and Save (CARS) Act with Reps. Betty Sutton (D-OH) and Candice Miller (R-MI).  The bill created a “Cash for Clunkers” program that would take older, gas-guzzling vehicles off the road and spur new car sales by providing consumers with a $3,000 to $7,500 incentive to buy more fuel-efficient cars or trucks.  The CARS Act provided graduated incentives based on greater fuel efficiency.

“The ‘Cash for Clunkers’ concept will help boost our economy, save families money, and decrease our dependence on foreign oil,” Braley said.  “By including this compromise in the new energy bill, we can accomplish many goals at once: consumers will get a break to purchase more fuel-efficient vehicles; we will all benefit from a reduction of greenhouse gases; and we will save American jobs by jumpstarting the auto industry.

“‘Cash for Clunkers’ is a common-sense idea that can have a big impact on the economy.  I’m glad to see this idea moving forward.”

Today’s compromise would provide consumers with incentives of $3,500 or $4,500 based on the fuel efficiency of the old vehicle and the fuel efficiency of the new model. 

A summary of the compromise — provided by the House Energy & Commerce Committee — is below..

Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel efficient cars and trucks.  The program will be authorized for up to one year and provide for approximately one million new car or truck purchases.  The agreement divides these new cars and trucks into four categories.  Miles per gallon figures below refer to EPA “window sticker” values

• Passenger Cars:  The old vehicle must get less than 18 mpg.  New passenger cars with mileage of at least 22 mpg are eligible for vouchers.  If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500.  If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.

• Light-Duty Trucks:  The old vehicle must get less than 18 mpg.  New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers.  If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500.  If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.

• Large Light-Duty Trucks:  New large trucks (pick-up trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers.  If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500.  If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
 
• Work Trucks:  Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class.  There will be a finite number of these vouchers, based on this vehicle class’s market share.  There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality.  Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 – 8,500 pounds.