If you want to trade in your gas guzzler for a new more fuel efficient car, there’s a good chance you can get a substantial cash voucher for your old car. The US Senate today passed their version of the cash-for-clunkers bill – it will give rebates to new car buyers buying more fuel efficient cars. The way Cash for Clunkers works is that if you have a car that is newer than 1984 and gets a combined EPA rating of 18 mpg or less and you trade it in for a new care rated at least 4 mpg higher, you’ll get a government voucher for $3,500. Buy a car that gets 10 mpg higher, and the check will be for $4,500. It’s a similar deal for SUVs, pickups and minivans – 1984 or newer with a combined 18 mpg or less – it’ll be $3,500 if the new vehicle gets 2 mpg more, and $4,500 if it gets 5 mpg more. You must have owned the older car for more than a year, and dealers will have to provide evidence that the old car is scrapped.
The current bill limits the program to $1 billion and it will expire Oct 1st of this year. President Obama has already said that he will sign it.