Hybrid Car Review

A new attempt to pass a cash for clunkers bill through Congress is becoming more likely. The Obama administration and the House have worked to create a new bill that seems likely to pass.

The Cash for Clunkers is a government funded program that would give new car buyers a voucher to buy more fuel efficient cars. Up to one million customers could qualify for up to one year. The older cars would need to get under 18 mpg in combined driving to qualify.

A new car would have to get at least 22 mpg to qualify for a $3,500 voucher, but if the new car is rated to get 10 mpg more than the old one, the voucher would increase to $4,500.

New trucks would need to get 18 mpg and be at least 2 mpg better than the old truck, while a 5 mpg gain would again raise the voucher to $4,500.

Total costs right now are estimated at $3-4 billion.

House Speaker Nancy Pelosi, in a press release, said she is looking forward to working "...with the Senate to pass this critical job-creating, energy independence legislation through the Congress so that we can send it to President Obama's desk for his signature."

She feels "'Cash for clunkers' is a common-sense proposal that will help provide a shot in the arm for the American auto industry at a crucial time for our economy, reduce the emissions that cause climate change, and make America more energy independent. By helping Americans trade in their old, less fuel efficient cars and trucks for newer, higher mileage vehicles, consumers will save money at the pump, help protect our planet, and create and save jobs for American auto workers."

With such a low mpg barrier, hybrids may see some benefit, but not a lot from the Cash for Clunkers Program. If you look at the most fuel efficient cars, you can see that although hybrids dominate the top of the list, an 18 or 22 mpg is still pretty low.

under the deal, a consumer could turn in a clunker that gets 18 miles per gallon and get $3,500 to buy a car that just barely meets minimum emissions standards in the United States.

The Senate bill sets a higher standard of 27.5 mpg for passenger vehicles and 23.1 mpg for trucks.

The 'clunkers' would be destroyed, which irks some auto recyclers.  There is no age limit on the older cars, nor does the new car need to be a domestic vehicle, either built here or built by a domestic car company, which makes it unlike previous bills.

Also included in the measure are vouchers for work trucks (pick-up or cargo van weighing 8,500-10,000 pounds) could net a voucher for $3,500 for a new work truck in the same or lower wieght class. The vehicle would need to be pre-2002. 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 older work truck and purchasing a pick-up or van weighing between 6,000-8,500 lbs. (Source: Treehugger)