Congress considers paying cash for clunkers

The House passed a bill this week with the stuggling auto dealers -- and the environment -- in mind. It would provide up to $4,500 to people who trade in their gas guzzlers for more fuel-efficient cars.
Proponents said in this story that similar programs have worked in Europe.
The House bill would offer $3,500 for trading in a car getting 18 mpg or less for one getting 22, based on window stickers. The figure rises to $4,500 if the mileage increases 10 mpg. Those trading in SUVs getting 18 mpg would only have to increase mileage by 2 mpg to get the $3,500 and 5 mpg for $4,500.
Auto dealers would provide vouchers.
The Senate is considering a similar bill. The limits apply to cars getting 17 mpg or less. To get $2,500, drivers would have to upgrade to a car getting 24 mpg. Boosting mileage by 10 mpg would get them $3,500 and 13 mpg would bring in $4,500.
SUV buyers would $2,500 for upgrading by 3 mpg, $3,500 for 6 and $4,500 for 9. By a used car that gets 24 mpg and get $1,000.
If the Senate passes its version, the chambers would have to reconcile their bills.
Perhaps then it will be time for a Smart car?
Getty Images photo






