Just In: Cash for Clunkers Passes House

Like it or not, the "Cash for Clunkers" legislation is being rammed through Congress, and word came today that the U.S House of Representatives has passed the bill 298-119. The bill passed would offer up to $4,500 maximum for your "clunker".

Here are the exact requirements to even be considered as eligible for the program: the vehicle must be less then 25 years old (MY 1984), insured in the last year and there is no trade in value outside of the voucher ($4,500 is all you're getting). Pretty restrictive.

In terms of how much for what,  if the vehicle being traded in gets 18 mpg or less and you trade in for a new vehicle getting 22 mpg, you receive $3,500 voucher. If the mileage is 10 mpg higher (28 mpg) you get the maximum amount, $4,500.

Conversely truck, minivan and SUV customers can receive a $3,500 voucher if their new vehicle achieves at least two mpg higher than the one traded in. If the vehicle gets over 5 mpg more then the trade in, $4,500 will be received.

All the automakers are applauding this bill as something that will help kick start new automobile sales again. It remains to see if that will be the case, especially with the dilution in funding and specifics from the original bill. Where are the "Buy American" provisions? I haven't heard anything about them. Regardless, if the Senate passes the bill like it's expected to, it's headed to the President's desk for a signing.