Senators Stabenow of Michigan and Brownback of Kansas introduce the Drive America Forward Act.
Drive America Forward by any other name is Cash for Clunkers
Here at LotPro.com, we see where late last week, Senators Debbie Stabenow, a Michigan democrat and Sam Brownback, a Kansas republican, jointly issued a press release regarding the introduction of S. 1135, the Drive America Forward Act more commonly known as the “cash for clunkers” bill.
Although the actual bill is still being printed by the government printing office and is not yet available for perusal, the news release shed even more light on how the program would work (at least as it has been proposed).
In broad terms, car buyers would trade in their older vehicles and receive vouchers of up to $4,500 toward the purchase or lease of a new, more fuel-efficient car or truck. As it is currently written, the program would be authorized for up to one year and provide for approximately one million new car or truck purchases.
The legislation divides cars and trucks into four categories and the mpg values are based on the EPA combined fuel economy as posted on the Monroney label affixed to new vehicles and also found on the EPA web site.
Bill specifics
The trade-in vehicles must:
• Be in drivable condition
• Be continuously insured and registered to the same owner for at least one year
• Have a combined fuel economy value of 18 mpg or less (Work trucks must be pre-2002 regardless of mpg)
• Not be more than 25 years old with historic or aesthetic value. These vehicles are valued by hobbyists or are a valuable source of restoration parts.
New vehicles
• The new vehicle must have a manufacturer’s suggested retail price of less than $45,000
• Passenger Cars: New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
• Small Trucks and SUVs: The old vehicle must get 18 mpg or less. New small trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old vehicle, the voucher will be worth $4,500.
• Large Light-Duty Trucks: The old vehicle must get 18 mpg or less. New large trucks (pick-ups and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
• Work Trucks: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. Only 7.5 percent of the total funds can be used for vouchers for the purchase or lease of a work truck. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also “trade down,” receiving a $3,500 voucher for trading in an olderwork truck and purchasing a pick-up or van weighing between 6,000-8,500 lbs.
Funding for the bill will come from redirected recovery funds. To prevent someone from buying a clunker just to qualify, the program will commence retroactively on March 30th of this year and last for 12 months from that date. Owners that have purchased a vehicle that falls within the program guidelines prior to the bill’s passage and March 30th will receive a $3,500 voucher if they can verify they followed the ownership requirements and the vehicle was scrapped as outlined in the program.
The Bottom Line
The bill is currently in committee (Commerce, Science and Transportation of which Senator Brownback is a member). And while it has the backing of all the auto manufacturers as well as the National Automobile Dealers Association (NADA), other groups such as the Engine Parts Group and the Automotive Aftermarket Industry Association, are against it, arguing that scrapping these vehicles would add to already overcrowded landfills and remove a large number of valuable rebuildable parts from the supplier pipeline.
Tags: automotive aftermarket industry association, cash for clunkers, debbie stabenow, drive america forward, drive america forward act, engine parts group, EPA, Fuel Economy, nada, national automobile dealers association, sam brownback
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