Emailing "That New Car Smell Just Got a Little Closer"
I've been following the cash for clunkers bill with some interest in this blog, as it seems to be an interesting way for the government to goose the economy, especially the beaten-down auto industry. Yesterday the House easily
passed the bill by a vote of 298-119. The bill now heads to the Senate, where passage
seems reasonably assured. The President has already said that he will sign the bill, so for about 650,000 Americans, a new car or truck subsidized by the federal government seems to be on its way.
Before you start dreaming about turning in your vehicle, keep in mind that there are some real restrictions on the program. The point of the program is remove old gas-guzzling vehicles from the street, not newer models, so your late-model Camry or Accord won't qualify. The target of the program is any vehicle built after 1984, owned and insured by the owner at least one year before the trade-in (this provision is to prevent you from going to the junkyard to find a clunker that qualifies for the cash), and has a value less than $4500 or $3500 (the maximum amount of cash available). Different rules apply to cars and SUVs/trucks, so be sure to check out the
details. Cars and trucks that are traded in must be sent to scrap yard where their drivetrains will be destroyed, ensuring they can't go back on the road to pollute.
Whatever its economic merits or demerits (and I think there are many demerits), there's no doubt in my mind that the program will be wildly popular and will significantly boost auto sales. I think there's a real chance that the program will therefore cost more than its estimated $4 billion price tag. As the program comes closer to fruition, though, consumers are going to have a lot of questions about what cars and trucks qualify, on both the trade-in end and the new-car end. A quick Google search for "cash for clunkers calculator" reveals that there is no web-based service (yet) that allows you to input what vehicle you have, and then generates a list of eligible vehicles you can buy and the varying cash rebates attached (and how about carbon footprint reduction too?). Sounds like a real business opportunity for those savvy web programmers out there!