Posted by Laurie Kight |

With the barrage of crummy news coming from the auto industry, lawmakers and the Obama administration are hungry to provide something positive to the American people. Enter the “cash for clunkers” bill, proposed legislation designed to provide an incentive for consumers to buy more fuel-efficient automobiles.

The idea, patterned after European programs, is that the government will provide vouchers for up to $4,500 toward the purchase price of a vehicle that gets at least four MPG better than the car a consumer is trading in. Qualifying consumers in the market for a new vehicle can use the voucher as part of a down payment if they want financing (RoadLoans would accept the voucher as cash down, for example), or to reduce the overall purchase price of the vehicle.

Like most government programs, there is a list of requirements that must be met – both from the consumer and with the vehicles in mind (and there are different rules for cars and trucks), but the concept is certainly interesting. As proposed, there are many positives – a customer with an inefficient, less reliable car gets a new ride, the environment gets a break, and the dealer makes a sale. USA Today has put together an FAQ page about the program that covers consumers’ hot topics concerning the issue.

Of course all this depends on the legislation passing. If the bill is part of proposed law that requires a lot of debate, it could take a while. If it’s “fast-tracked” it could be sooner – possibly by the end of the summer. Either way, if it passes, the program will only be good for one year. When and if it passes, RoadLoans will support the program by accepting the vouchers as part or all of a down payment toward the purchase of a vehicle.

Posted on: 6/8/2009 at 2:51 AM
Categories: The Smart Consumer
Post Information: Permalink | Comments (0) | Post RSS