This week Congress may choose to put as much as $4,500 in your pocket for a brand new car. If you have an old gas guzzling car, truck or SUV lawmakers may give you a big chunk of change to buy some more fuel-efficient wheels. Supporters of the Cash for Clunkers program say it will get those gas-hogs off the road but this would also give the auto industry a much needed $1 billion shot in the arm.
Derrick Jackson has been driving a 1985 Monte Carlo around for years. It only gets about 16 miles per gallon in the city and he likes the idea of something more fuel-efficient. "We always could save a little more money," he said.
So he's looking at getting a new one and getting rid of the old ride. He has had a few offers but never more than $1,500. If Congress says yes to this bill that could change.
To qualify, the car, truck, or SUV has to get 18 miles to the gallon or worse and be made between 1984 and 2001. For cars, if you improve your mileage by at least 4 miles a gallon with your new vehicle you get $3,500. If you improve by 10 miles a gallon or more it's $4,500. There's a more complex scale with more relaxed mileage improvement requirements for trucks and SUV's.
Wes Thomas with Northpoint Mazda Volkswagon in Sherwood said, "who couldn't use the extra cash? Everybody needs the boost right now." Thomas thinks this will be very popular in Arkansas and it couldn't come at a better time for car dealers. "Anything we can do to jump start the economy and keep things going is going to be good," he said.
Thomas says if Cash for Clunkers goes through not only will you have more fuel efficient vehicles on the road, but with improved safety standards they'll be more secure on the road too.
Incidentally, Mr. Jackson also has a truck at home that only gets 12 miles to the gallon so you can bet he's hoping this will pass.
You may wonder what happens to the old cars and trucks. Since the idea is to get them off the road, the dealers will have to send them off to the salvage yard. Senator Mark Pryor says he likes the idea of the Cash for Clunkers program, but he wants to take a close look at it to make sure the U.S. can afford it.
