Congress Close on ‘Cash for Clunkers’

from NY Times:

Quote:

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May 6, 2009, 9:18 am
By Ken Belson

After months of debate, Congress appears close to reaching a compromise “Cash for Clunkers” plan that would give consumers up to $4,500 if they turn in their old car and use the money to buy a new, more fuel efficient replacement.

Late Tuesday, the House Committee on Energy and Commerce released a fact sheet that outlines the plan, which includes elements of two competing bills in the House and another in the Senate.

Summary of ‘Cash for Clunkers’ Agreement (Click to enlarge).Under the plan, consumers can turn in cars or light-duty trucks that get less than 18 miles a gallon. If they buy cars that have “window sticker” mileage ratings of at least four miles a gallon more than their old cars, they will receive a voucher worth $3,500. If they buy cars that get at least 10 miles a gallon more than their old car, they receive $4,500. (Readers can check the “window sticker” mileage ratings of cars going back to 1985 at fueleconomy.gov.)

They can get vouchers for turning in light-duty trucks, large light-duty trucks and work trucks as well.

more here:http://wheels.blogs.nytimes.com/2009...r-clunkers/?hp

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So I can trade in my 8 mpg Lamborghini Murcielago and get $4500 off a new 12 mpg Chevy conversion van? Government is cool!

Yes, but if you did trade your Lambo in on a Chevy van, you would win "Dweeb of the Year"!

Assuming you own the Lamborghini outright, if you did the following:

Trade in: 2009 Lamborghini Murcielago (base MSRP $354,000)
Bought: 2009 Chevrolet Express - Explorer Limited X-SE (roughly $71,000)

Would that mean that the dealer you traded the Lamborghini into would actually owe you $283,000?

This is a total hypothetical as I doubt if the answer is yes you would be able to find a dealer willing to actually pay you to buy a car.

-Tad