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Public Statements

Congress Passes Cash for Clunkers, Will Save Jobs

Press Release

By:
Date:
Location: Washington, DC

U.S. Senator Debbie Stabenow (D-MI) today praised Senate passage of "Cash for Clunkers" legislation, which was part of the final Supplemental Appropriations Act of 2009. Once signed into law, the program will allow consumers to trade in older, dirtier vehicles in exchange for a voucher of up to $4,500 to help pay for the purchase or qualified lease of a new, more fuel-efficient vehicle. This program mirrors Senator Stabenow's Drive America Forward legislation, which she introduced last month.

"This is a big victory for families across Michigan and across our country," said Stabenow. "This is a bill that saves jobs and helps small businesses affected by the economic downturn, all with the added benefit of helping the environment. This program will provide an economic stimulus at a time when hardworking families need it most."

Under the program, consumers may trade in their older vehicles and receive vouchers worth up to $4,500 toward the purchase or qualified lease of a new, more fuel-efficient car or truck. The program will be authorized from July 1, 2009 to November 1, 2009 with $1 billion in emergency funding.

The trade-in vehicles must:
Be in drivable condition

Be continuously insured and registered to the same owner for at least one year

Have a combined fuel economy value of 18 mpg or less (Work trucks must be pre-2002 regardless of mpg)

Not be more than 25 years old with historic or aesthetic value. These vehicles are valued by hobbyists or are a valuable source of restoration parts.

New vehicles
The new vehicle must have a manufacturer's suggested retail price of less than $45,000

Passenger Cars: The older vehicle must get 18 mpg or less. New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.

Small Trucks and SUVs: The old vehicle must get 18 mpg or less. New small trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old vehicle, the voucher will be worth $4,500.

Large Light-Duty Trucks: The old vehicle must get 18 mpg or less. New large trucks (pick-ups and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.

Work Trucks: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. Only 7.5 percent of the total funds can be used for vouchers for the purchase or lease of a work truck. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also "trade down," receiving a $3,500 voucher for trading in an older work truck and purchasing a pick-up or van weighing between 6,000-8,500 lbs.

The mpg values are EPA combined city/highway fuel economy as posted on the window sticker of new vehicles and can be found at fueleconomy.gov.


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