U.S. House Boosts “Cash-for-Clunkers” Program

July 31, 2009, WASHINGTON, D.C. – Today, the U.S. House passed legislation to extend the recently created “Cash-for-Clunkers” program, which has succeeded in encouraging Americans to purchase new fuel-efficient cars and trucks.  The program allows consumers to trade in their old, gas-guzzling cars for vouchers, worth up to $4,500, to help pay for new vehicles that get more miles per gallon (MPG).

“Since we created this program, participating auto dealers throughout Middle Tennessee have reported increased sales,” said Congressman Bart Gordon.  “This is not only important for our economy as it recovers, but it also strengthens our national security – as consumers purchase more fuel-efficient cars, we reduce our dependence on foreign oil.”

The Cash-for-Clunkers program is expected to reduce U.S. oil consumption by more than 250 million gallons of gas.  Nationwide, more than 200,000 cars have been purchased through the program since July 1, 2009. 

“This is a good bill, especially because it provides additional funds without increasing the federal deficit,” said Gordon, who is a strong advocate for ensuring that new federal spending is completely offset.  “For every new dollar we spend, we’ve got to find a U.S. dollar to pay for it, and this bill does just that.”

The bill provides the Cash-for-Clunkers program with $2 billion in additional funding, which was diverted from an existing energy loan program in the U.S. Department of Energy.  The legislation also extends the program through September 2010.  The Senate is expected to pass the House bill before August 7.

To qualify for a voucher, consumers must trade in an older vehicle that gets 18 MPG or less, and purchase or lease a new car or truck that gets at least 22 MPG.  If the fuel economy of the new car is at least four MPG higher than the old vehicle, the voucher will be worth $3,500.  If the fuel economy of the new car is at least ten MPG higher than the old vehicle, the voucher will be worth $4,500.

For more information about the Cash-for-Clunkers program or to locate a participating dealer in Middle Tennessee, contact the program’s toll-free hotline at (866)-CAR-7891, or visit www.cars.gov.