Image: DUSAN PETRICIC
More In This Article
Listen to this PodcastOld cars that foul the air with dirty exhaust are a valuable commodity in Texas. If you own a clunker at least 10 years old and live near a major city like Houston, the state will give you a voucher worth more than the car’s value. Drive the car to a dealer, sign a few forms, hand over the voucher—worth up to $3,500—and drive off in a newer vehicle, no soot trailing you down the road.
For the clunker, this swap is the last stop before being plundered for parts and scrap metal. But for low- and middle-income consumers, it’s an opportunity to trade up to a newer car they might not otherwise have been able to afford—a cleaner car that is also cheaper to operate because, being much newer, it gets better gas mileage—further benefiting the environment. Texas sent 13,492 jalopies to the scrap heap during the last year in a program financed by auto inspection fees and designed to help the state’s urban areas meet clean air standards. California is trying a scrappage program, too, as are Canada and various European countries.
See what we're tweeting about
16 Comments
Add CommentI have always heard (and may have read in this magazine) that a car that dies in America can be sent to Africa where it is reborn and made to run for millions of more miles. And the reason it lives so long there is because the first thing they do is rip out the emissions controls.
Reply | Report Abuse | Link to thisMy junky Mazda got me $500 when I turned it in, and I was getting 30 mpg. I can't imagine getting $3500 for a car I paid $1800 for.
Like any government undertaking, this is sure to be rife with errors and inefficiencies. You can be sure that if I can get a $3500 voucher, I will buy an old clunker for a couple hundred dollars and trade it for a new vehicle It probably won't be an American car (car being the operative word; if I can buy a truck with the voucher it would be a GMC). So, in this case, you would have taxes from middle class workers (beloved by all politicians) subsidizing an evil rich white man's purchase of a foreign automobile. Brilliant!
Reply | Report Abuse | Link to thisIn many states, you have to register a vehicle every year (which typically costs $100-200) or pay for a certificate of non-operation. If the cash is only offered for cars that were registered before the program is implemented, that restricts the bonus to cars which people care enough about to pay the registration fee -- which means they're probably being driven.
Reply | Report Abuse | Link to thisEven a clunker that's only driven a few hundred miles a year can be a huge polluter -- especially if it's all city driving.
People who drive clunkers every day cannot afford a new car even if you gave them $10,000 credit. They trade up to a $2,500 "newer clunker" that they buy at the friendly neighborhood used car lot (aka loan shark).
Reply | Report Abuse | Link to thisThose that can afford to buy a car in this tight credit market will reroute clunkers that have maybe a couple thousand miles of life left and were headed for the scrapyard anyways will collect an nice $4,500 rebate. Where is the savings in that?
On top of all this bs 1.1 billion dollars to save 11,400 barrels per day of oil comes out to $263 per barrel.
Does any one see cars from the 60"s and 70's that are not someones prize possession that rarely leaves the garage?
People who drive clunkers every day cannot afford a new car even if you gave them $10,000 credit. They trade up to a $2,500 "newer clunker" that they buy at the friendly neighborhood used car lot (aka loan shark).
Reply | Report Abuse | Link to thisThose that can afford to buy a car in this tight credit market will reroute clunkers that have maybe a couple thousand miles of life left and were headed for the scrapyard anyways will collect an nice $4,500 rebate. Where is the savings in that?
On top of all this bs 1.1 billion dollars to save 11,400 barrels per day of oil comes out to $263 per barrel.
Does any one see cars from the 60"s and 70's that are not someones prize possession that rarely leaves the garage?
If this passes watch out for the next step; requiring all of us with classics live a VW beetle worth about $20,000 to trade it and for a $2,500 voucher. Over my dead lovebug!
Reply | Report Abuse | Link to thisThis is nothing more than another give-away program for those who cannot afford a new car. And who pays? The 30% of us in this country who actually pay taxes.
Reply | Report Abuse | Link to thisCash for Clunkers does nothing that a free market economy will do in 2 or 3 years, and without taxpayer subsidy.
Those who get new cars in this manner can't afford to make the payments, and even if they get one, they cannot afford to properly maintain them, buy insurance, keep safe tires and brakes on them and the like. So all we get for our money is a newer generation of clunkers.
"Cash for Clunkers"
Reply | Report Abuse | Link to thisAmerican politaticans prove once again that together they are dumber then a box of rocks.
People that own and drive an old clunker can not afford to buy and own a new car so what good is a voucher of any size.
IF you gave them a new car they could not afford the taxes, licence and insurance to use the car.
This is just another giveaway to the well to do that can afford a new car. Maybe one of them will buy my old clunker so I can a newer old clunker.
We are all too much occupied of the financial crisis that everything around us especially our environment are almost forgotten by almost all of us. I understand that we all need financial help at times. Financial help can come in many forms – a paycheck, a tax return check (love the Earned Income Credit!), a loan of some sort like a payday loan. There are a lot of different things can help to fix money problems. The bottom line is cash; we all need a little now and again, even if it's cash for fun or for a vacation or if we came up short and we have the power bill to contend with. There are many options to consider when you need a helping hand, whether you want to go to a bank or use a credit card or a cash advance for some <a rev="vote for" title="When to Get a Cash Advance?" href="http://personalmoneystore.com/moneyblog/2009/05/28/cash-advance/">financial help</a>. however, our environment also needs help and our will to take care of our Mother Earth.
Reply | Report Abuse | Link to thisWe are all too much occupied of the financial crisis that everything around us especially our environment are almost forgotten by almost all of us. I understand that we all need financial help at times. Financial help can come in many forms – a paycheck, a tax return check (love the Earned Income Credit!), a loan of some sort like a payday loan. There are a lot of different things can help to fix money problems. The bottom line is cash; we all need a little now and again, even if it's cash for fun or for a vacation or if we came up short and we have the power bill to contend with. There are many options to consider when you need a helping hand, whether you want to go to a bank or use a credit card or a cash advance for some financial help. however, our environment also needs help and our will to take care of our Mother Earth.
Reply | Report Abuse | Link to thishttp://personalmoneystore.com/moneyblog/2009/05/28/cash-advance/
Why do so many people think, because some of us drive old cars and trucks, that we can not afford to buy new ones. I drive an old pick up truck just to carry stuff, it runs good but is rusty and doesn't get the mileage it once used to. I would like to replace it with a new one if I could get $3500 - 4500 towards a new one that would get better mileage and be cleaner for the environment. Because YOU feel that most people are poor. and can't afford new, don't mean the program is bad. I think it should support american auto companies only, but thats because I'm an american and I believe in american products. My two cents.
Reply | Report Abuse | Link to thisI don't qualify because my car already gets good gas mileage. My dad swears by the car buying process here: <a href="http://excarsalesman.typepad.com/">http://excarsalesman.typepad.com/</a> It is kind of similar.
Reply | Report Abuse | Link to thisI haven't tried it yet, but I might because it looks good.
I have a feeling dealers are going to automatically increase prices because of the increased demand (artificial) for lower MPG cars. So the thousands of savings from this bill for consumers is not entirely accurate. The demand will increase prices and you'll get a voucher from increased prices. I'm certain some markets you'll come out even as if they never offered this voucher. It is poorly written legislation.
I don't qualify because my car already gets good gas mileage. My dad swears by the car buying process here:
Reply | Report Abuse | Link to thishttp://excarsalesman.typepad.com
It is kind of similar.
I haven't tried it yet, but I might because it looks good.
I have a feeling dealers are going to automatically increase prices because of the increased demand (artificial) for lower MPG cars. So the thousands of savings from this bill for consumers is not entirely accurate. The demand will increase prices and you'll get a voucher from increased prices. I'm certain some markets you'll come out even as if they never offered this voucher. It is poorly written legislation.
i was trying to get in on the cash for clunkers. i own a 1986 caddy fleetwood. its 23 years old. you can see the gas gage going down as you drive. it probably gets 8 to 10 mpg. however our wonderful govt, says it averages 19 miles per gallon. thats impssible. this car could be the poster boy for this progect.
Reply | Report Abuse | Link to thiscan this broad general info be over rided in some cases? the car is apiece of junk and leaks oil all over the driveway. how can i possibly not qualify. my newer caddy 1997 qualifies! but i cant turn that in its still in pretty good shape. im being forced to keep an old clunker and get rid of our more efficient car. any help. this isnt fair.
i need help re cash for clunkers. i have 2 old cars. one is 1996 caddy deville. it gets good mileage and is still in good shape. my other car ia piece of crap 1986 caddy deville which gets 8-10 miles per hour and leaks oil. would you beleive the piece of junk does not qualify for the program and the 1997 does.
Reply | Report Abuse | Link to thishow can the govt generalize like that there is no way im turning in my1997 caddy and keeping what the govt. says gets good gas mileage. is this fair and can this scam be overided?
i need help re cash for clunkers. i have 2 old cars. one is 1996 caddy deville. it gets good mileage and is still in good shape. my other car ia piece of crap 1986 caddy deville which gets 8-10 miles per hour and leaks oil. would you beleive the piece of junk does not qualify for the program and the 1997 does.
Reply | Report Abuse | Link to thishow can the govt generalize like that there is no way im turning in my1997 caddy and keeping what the govt. says gets good gas mileage. is this fair and can this scam be overided?