We’ve been following the federal government as they come up with aid and bail out packages for General Motors and Chrysler, but on a consumer level all we’ve heard thus far is some chatter on possibly rolling out a “cash for clunkers” program. Like Germany, the United Kingdom and other European countries, American policymakers have been debating crafting a similar program, but now it appears that the parameters of what is being called “cash for guzzlers” is nearly set.
Cash For Guzzlers In The Works
According to The Detroit News, “cash for guzzlers” would effectively award owners who traded in their fuel thirsty rides for a new, economical car. Though the definition of guzzler hasn’t yet been set, the goal of Congress is to permanently remove these particular cars from roads and have them scrapped.
Eligible buyers (who must be able to afford a new car in the first place) would be given up to $4500 for their trade in, monies which would be taken off of the price of their new car. This means that after negotiating their best deal and including whatever manufacturer incentives are offered at the time, the federal government (that’s me and you, the taxpayer) would put an additional $4500 on the hood.
Would Current Manufacturer Incentives Stay?
There is no telling if the car companies would keep current incentives in place to move iron, but if they were you could come away with the deal of the century. Literally.
For example, if you don’t mind purchasing a Pontiac (R.I.P. by the end of 2010) GM is currently offering $1000 savings on the slow-selling G3 5 door. Go for the strip model with a sticker price of $15,055 and you may be able to drive away from your Pontiac showroom for as little as $9555 plus tax, tags, fees, etc. ($1000 GM discount & up to $4500 from Uncle Sam). Of course, if you have your eyes on a beefy G8 sedan, you may not be able to get the full $4500 if anything.
What Will Congress Do?
Of course, the entire deal could unravel if members of Congress are too caught up with implementing a “climate change” provision to limit carbon emissions. That means your favorite legislators could limit the parameters of the vehicles eligible for the program to a select few “green friendly” models if some of the more zealous members hold sway.
Given that Congress is debating the merits of a college football playoff system while the economy burns and the Taliban marches on, I wouldn’t bank on purchasing a new car with federal assistance just yet. By the time the final bill makes through the House and is taken up by the Senate, what the president ends up signing may be far different than what is being worked on right now.
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