‘Cash for Clunkers’ Bill Passes Through House

The U.S. House of Representative recently passed a bill, supported by President Barack Obama, that would allow citizens to get up to $4,500 in vouchers toward fuel-efficient vehicles if they trade in their gas-guzzlers.

Passing 298-119, the bill is one element of the government-aided restructuring of General Motors and Chrysler. If the strategy works, consumer demand should increase and auto sales should rise. Statistics show that overall auto sales are down 34 percent in May 2009 from 12 months prior.

Under the bill, car owners receive a voucher worth $3,500 if they trade in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher grows to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle.

Source:

USA Today: House Approves ‘Cash for Clunkers’ Bill to Boost Auto Sales