On Thursday, the Senate approved a Cash for Clunkers law that would give car purchasers an inducement to trade in their automobiles and get a new auto. So, what accurately is this Cash for Clunkers bill and how will it have an effect on you?
Well, if your auto gets under 18 miles per gallon, when you go to trade in your auto, the government will give the dealership a coupon for $3,500 if the car you receive has at least gas mileage of 22 mpg or higher, it becomes $4,500 if it is 28 mpg or higher. If you possess a pickup truck, SUV, or minivan that receives 18 miles per gallon or less, you would receive a voucher for $3,500 if the automobile you purchase gets at least 2 miles per gallon higher than you present vehicle and $4,500 if the vehicle you purchase gets 5 miles per gallon more.
If you have any emotional fondness to your present car, this might not be the deal for you. At which time you take your auto in, it will not go to a devoted home or sent out to live on a farm. The proposal is to ensure that these automobiles are taken off the roads, so your car will go to scrap and either shredded or flattened.
Obviously, if your trade in value is exceeding $3,500 or $4,500 it wouldn’t make a great deal of sense for you to partake in this bill anyhow simply because the dealership will not give you the trade in price for your auto if they have to ship it off to be scrapped.
GM and Chrysler have together lobbied for this bill to be accepted and while it is another thing that the government has thrown $1 billion at, it is good in the long run for not only the car manufacturers, but also the environment. The only problem is that all the SUVs that were bought at the height of the craze have a higher trade in worth than the $4,500 at present offered. If you bought a Tahoe in 2004, I am sure that your trade in value is more than $4,500, so that car hasn’t been taken off the highway.
I imagine that this bill is a step in the appropriate direction, but in my belief, I believe that people who drive environmentally UNfriendly automobiles should be taxed to make up for what the government has spent on this proposal.Fascinated in learning more about
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