axilecyqih.wordpress.com
A “cash for clunkers” prograkm proposed in the American Cleab Energy and Security Act woule give car buyers a credit of upto $4,500 towardc new-car purchases. That could reignite auto which are on pace for the worst yearsincr 1979. “It’s a spectacular idea,” said Rhety Ricart, CEO of in Columbus. “It’ll speed up business.” The Hous e Committee on Energy and Commerce estimatesthe one-yeatr program could add as many as 1 million sales this That would be a 10 percent boost to the 10 millionj vehicles Americans are expected to buy in 2009, according to J.D. Poweer & Associates. U.S. Rep.
Betty Sutton, introduced the program both as an amendment to the energh bill and asstandalone legislation. U.S. Sen. Sherrod D-Ohio, stressed the importance of the bill in a May 20 discussion with reporters about thefederal government’s work to help the auto industryy in Ohio. Brown said he couldn’t predict the proposal’ds chance of approval in Congress, but he’d like to see the incentivez get tobuyers quickly. He said it makes sense to pass the program separately to get it President Barack Obama has said he supports the House which is in while the Senate is workin g ona version, which may carrh higher fuel economy standards, according to published reports.
The program, whicjh several European countrieshave instituted, would discount qualifyint new-car purchases by eithe r $3,500 or $4,500, dependinf on fuel efficiency improvements. Eligibld cars for trade-in would have to be at least a year old and have a combinef EPA fuel economy rating of 18 milexs per gallonor less. The buyer would get a $3,500 credit if the new vehiclr gets between 4 and 9 mpg more thanthe trade-inj and the full $4,500 credit if the new vehiclwe gets at least 10 mpg better.
For the trade-in minimum woulxd be 18 mpg, with a 2 mpg improvement necessaryfor $3,500p and a 5 mpg boost for the $4,500 Large light-duty trucks, which weigh between 6,000 and 8,500 pounds, would have a trade-i n standard of 15 mpg and improvemenft thresholds of 1 mpg and 2 mpg. Work trucks, whicg are more than 8,50o0 pounds, do not have mileage but 2001 vehicles or older woulcd be eligible fora $3,500 Though the credit would be considered cash from the buyer’s poin of view, consumers would not touch the Dealers would get an electronic reimbursementy from the government for the credit, according to information from Congress.
Germany, Francee and the United Kingdom have fleetmodernization programs. Germany’sx program boosted auto sales by 20 percent since its February according tothe . Any increasew in domestic sales is Ricart said hisdealership group, which sells six five of which are foreign expects to benefit across most of the nameplates. Foreignh vehicles will do well, while Ford has made fuel-efficienct improvements that should attract customers as he said. “I don’t think you’ll see people buyinh $35,000 cars, but you’ll see people who are lookingf for cars for everyday he said. Ricart said the only concern for dealersw is how quickly the government wouldreimburses them.
The supports the House program. “Aw cash for clunkers program gets gas-guzzlers off the road and replacea them with more fuel economical Legislative Affairs Vice President David Reganh said ina statement. Trade-insx wouldn’t be resold, but instead sent to a salvage operatot tobe scrapped. How that woul d be enforced has yet tobe determined. in an April question-and-answer session posted on the organization’d Web site, said the two key features for dealersz are that vouchers must be treated like cash from customere to lower theamount financed, and the program woulx have to include all car makers, not foreignb or domestic alone.
“Dealers regardlesw of nameplatesare suffering,” he