As part of his energy plan, U.S. Congressman Mike Rogers (R-Brighton) proposed a plan this past summer to provide payments to consumers who traded in older cars and purchased newer, fuel efficient models.
The proposal died.
But it has now been resurrected by House Speaker Nancy Pelosi (D-Calif.). Yesterday, Pelosi and colleagues, including Rep. Candice Miller (R-Harrison Township) introduced legislation to give American tax payers between $5,000 and $7,500 in vouchers from the feds to buy a new car. To favor American-made vehicles, foreign-made models will only qualify for $4,000 vouchers; this difference garnered the support of the UAW, which opposed an earlier version. The $7,500 voucher would be used only starting in 2010 and only for vehicles which are plug-in hybrids that get 100 mpg or more.
But wait — what if you don’t want a new car, but want to get rid of your used one? The bill has a provision for this, too. Under the bill, $3,000 would be given for a mass transit voucher.
The goal of these Cash-for-Clunker programs is to get gas-guzzling SUV’s and other cars off the road in favor of hybrids.
What about those drivers who do not earn enough, or have good enough credit to qualify for the car loans necessary to buy these new cars? What about those who are not Exceptionally Well Qualified Buyers who won’t get credit to buy a car because, well, the credit market sucks?
Um, nice try Congress.
