Cash for Clunkers

Congress is on the verge of passing the "Cash for Clunkers" law, part of H.R. Bill 2346, which is actually an Iraq War appropriations bill.

If the bill passes in the Senate, and is signed by the President, it will be part of the auto industry bailout that will go directly to consumers.

Officially named the "Consumer Assistance to Recycle and Save Program" (CARS), the program will receive an initial allocation of $1B, and will run from July 1 to November 1.

Details are still being hammered out, but according to the website CashforClunkersHeadquarters.com:

1. The definition of "clunker" is a car that gets 18 mpg or less and 16mg for trucks/SUVs.
2. Owners who purchase a new passenger car that gets at least 4 mpg higher than their old "clunker" get a $3,500 voucher. If the mileage difference is more than 10 mpg, the consumer gets the full $4,500.
3. Buyers of small trucks and SUV's need less of an improvement to get the same amounts. If the new vehicle gets at least 2 mpg more than the "clunker," a $3,500 voucher is issued; for new trucks or SUV's getting 5 mpg, the new car owner gets $4,500.
4. For work trucks older than 2000 they get a flat $1,000 regardless of improvements.
5. Consumers need to have owned and registered the vehicle in their name for a minimum of one year to qualify.

If this law passes, Moose, my old Toyota 4Runner, may be headed out to pasture. Wonder what I should buy? Any suggestions?

Photo © Jason Fogelson