June 23, 2009 1:00 PM
Cash for Clunkers Program Moves Forward
Last week, the Senate voted to keep the Cash for Clunkers provision in the $106 billion dollar wartime spending bill. Now that both the House of Representatives and Senate have approved the spending bill, it goes to President Obama for signature. Following this, the U.S. Department of Transportation will have 30 days to put this regulation in place.
Understanding Cash for Clunkers Program
For new car buyers willing to trade-in older gas guzzlers, the $1 billion Cash for Clunkers (CFC) bill will provide vouchers worth up to $4,500 that can be used toward the purchase of a new, fuel efficient car or truck. The program will run until early November or until approved funds are expended. If the initial plan is successful, Congress could seek additional funding. The Congressional Budget Office estimates that the current bill could boost sales by 250,000 new vehicles.
The program provides customers with a voucher worth $3,500 to trade-in a passenger car that gets less than 18 mpg for a vehicle with at least 22 mpg, or $4,500 toward the purchase of a vehicle that gets 10 mpg better fuel economy. For light trucks and SUVs, the new vehicle has to get at least 18 mpg. If it gets at least 2 mpg more than the old one, the voucher is $3,500; if it’s at least 5 mpg more than the old, the voucher is $4,500. The incentive is limited to vehicles with an MSRP of $45,000 or less.
What does this mean to the BMW Group?
As a contributor to America’s economic, social, and sustainable advancement, the BMW Group supports actions that help restore consumer confidence in the economy. BMW and MINI have one of the most fuel efficient fleets in the premium segment of the market and we intend to use the public awareness of the CFC program to highlight our proven efficiency track record (ie: Environmental Defense Study), as well as our newest Advanced Diesel vehicles.
All in all, 21 BMW Group vehicles (6 BMW; 15 MINI) meet the guidelines set by the bill – a minimum of 22 mpg combined fuel economy and MSRP of $45,000 or less (see table below).
