House and Senate Agree on Cash for Clunkers Bill

Negotiators for each legislative body agreed to include the $1 billion program in a $106 billion wartime spending bill. This is short of the program’s expected cost of $4 billion annually, and this year would only fund it through Sept. 30, the end of the fiscal year. In other words, it’s more of a get-the-ball-rolling agreement, with additional funding to come later.

The bill is expected to pass when it goes to a vote in both houses, and President Barack Obama has said he supports the measure, which is intended to boost auto sales and put more efficient vehicles on the road.

The provisions are the same as those in the House bill passed earlier this week, but here’s a quick guide to what the bill could do for consumers.

• Cars rated at 18 mpg or lower in combined city and highway driving could be turned in for cash vouchers good toward the purchase of a new car. New cars rated at least 4 mpg higher would earn a $3,500 voucher, while a 10 mpg improvement would earn a $4,500 voucher.
• Trucks (including vans and most SUVs) are eligible, but the new vehicle must average at least 18 mpg and get at least 2 more mpg than the old vehicle to qualify for the $3,500 voucher. Five more mpg would earn a $4,500 voucher.
• All old vehicles will be scrapped, so consumers will want to check the trade-in value of their old car before they participate.

House, Senate Teams OK $1B ‘Cash for Clunkers’ Program (Detroit News)