'Cash for Clunkers' Introduced in Congress

Program would allow trade-ins of fuel-inefficient vehicles for cash or public transit vouchers.

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Got an old gas-guzzler in your driveway? Legislation that was introduced yesterday may soon allow you to trade it in for cash - up to $4,500, depending on the car. Said Sen. Charles Schumer, "This is an even better trade-in offer than they could get from any car dealership."

"Cash for Clunkers," as the program is being called, aims to get millions of fuel-inefficient vehicles off the road to help lower our reliance upon foreign oil, and reduce emissons and pollution. According to the Associated Press, by its fourth year the program would save between 40,000 and 80,000 barrels of fuel a day. The estimated cost of the program is between $1 and $2 billion.

The newer the vehicle, the more cash you'll get for it. If your vehicle was made before 1998, you'll get $2,000, while vehicles from 1999-2001 will get $3,000 and any vehicles made after 2002 will get $4,500. A person can also claim the equivalent dollar amount in public transit fares. The cars must be driveable, and must have a fuel economy rating of less than 18 miles per gallon. Once turned in, the old vehicles would be taken apart for scrap.

Find out all the FAQs on Cash for Clunkers from U.S. News' Rankings and Reviews.


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