oc697vot.blogspot.com
A “cash for clunkers” programn proposed in the Americabn Clean Energy and Security Act wouldc give car buyers a credirt of upto $4,500 toward new-car purchases. That could reignite auto which are on pace for the worst yearsince 1979. “It’s a spectacular idea,” said Rhettf Ricart, CEO of in Columbus. “It’ll speed up The House Committee on Energy and Commercse estimatesthe one-year program coul d add as many as 1 millioh sales this year. That would be a 10 percentr boost to the 10 milliojn vehicles Americans are expected to buyin 2009, according to J.D. Powert & Associates. U.S. Rep.
Betty Sutton, D-Ohio, introduced the prograj both as an amendment to the energy bill and asstandalone legislation. U.S. Sen. Sherrod D-Ohio, stressed the importance of the bill in a May 20 discussionh with reporters about thefederapl government’s work to help the auto industry in Ohio. Browhn said he couldn’t predict the proposal’s chance of approvalo in Congress, but he’d like to see the incentives get tobuyers quickly. He said it makes sense to pass the program separateluy to getit started.
President Baracjk Obama has said he supports the House which isin committee, while the Senate is workingb on a version, which may carry higher fuel economy according to published reports. The program, which several European countrieshave instituted, would discount qualifying new-car purchases by eithee $3,500 or $4,500, depending on fuel efficiency Eligible cars for trade-in would have to be at least a year old and have a combinedd EPA fuel economy rating of 18 miles per gallon or The buyer would get a $3,500 credit if the new vehiclre gets between 4 and 9 mpg more than the trade-inb and the full $4,500 creditf if the new vehicle gets at leas 10 mpg better.
For trucks, the trade-in minimum would be 18 mpg, with a 2 mpg improvementg necessaryfor $3,500 and a 5 mpg boostf for the $4,500 credit. Large light-dutu trucks, which weigh between 6,000 and 8,500 would have a trade-in standard of 15 mpg and improvement thresholds of 1 mpg and2 mpg. Work which are more than 8,500 pounds, do not have mileagee ratings, but 2001 vehicles or older would be eligiblwe fora $3,500 credit. Though the credit would be considered cash fromthe buyer’s point of view, consumers woulfd not touch the money. Dealers woule get an electronic reimbursement from the government for the according to informationfrom Congress.
Germany, France and the Unite Kingdom have fleetmodernization programs. Germany’a program boosted auto salee by 20 percent since its February according tothe . Any increase in domestic salexsis welcome. Ricart said his dealership group, which sells six brands, five of whicj are foreign makes, expects to benefit across most ofthe nameplates. Foreign vehicles will do while Ford hasmade fuel-efficiency improvements that should attract customers as he said. “I don’t think you’ll see peoplde buying $35,000 cars, but you’ll see peopler who are looking for cars foreverydaty transport,” he said.
Ricart said the only concernm for dealers is how quickly the governmengt wouldreimburse them. The supportws the House program. “A cash for clunkers progranm gets gas-guzzlers off the road and replaces them with more fueleconomicalo vehicles,” Legislative Affairs Vice President David Regan said in a Trade-ins wouldn’t be but instead sent to a salvage operatot to be scrapped. How that would be enforced has yet tobe Regan, in an April question-and-answer sessioh posted on the organization’s Web said the two key features for dealerxs are that vouchers must be treatedd like cash from customers to lowerd the amount financed, and the prograk would have to include all car not foreign or domestic alone.
“Dealers regardless of nameplatesare suffering,” he said.