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Congress Considers Gas Guzzler Rebate

Congress is considering legislation to entice drivers of environmentally unfriendly SUVs and passenger cars to swap their “clunkers” for more earth friendly vehicles. This so- called “cash for clunkers” bill would provide anywhere from $2,500-4,500 towards the purchase of a new car by unloading say, an aging mid-nineties four-wheel drive model.

This new bill follows state-sponsored gas guzzler rebate programs in California and Texas, two states known for their congested roads and love of cars, to help rid the country of thousands of vehicles with poor miles per gallon ratings and save consumers money at the pump.

However, there are some criteria that need to be met before this “cash” can be put towards the purchase of a new or used SUV or car. First, the gas guzzler in question must be over five years old (2004 or older) and must have an EPA rating of less than 18 MPG combined street and highway. The vehicle must also be in working condition and registered for at least the past 120 days.

If all of those bullet points are met, there is another hurdle in the gas guzzler rebate- finding a new or used SUV that gets 25% more MPG than the government’s 21.3 MPG minimum for a light truck. That may seem like a nominal figure, but that would require the owner of say, a 1998 Jeep Grand Cherokee that gets a combined 14 MPG, find a vehicle that gets at least 28-29 MPG in order to utilize the voucher. Currently, only four vehicles fall within that category.

For passenger cars, the buyer would be required to find a vehicle that gets 25% better mileage than 27.5 MPG. Quite a few vehicles fall within this range, but hybrid cars can be pricey and small, making the deal unappealing for shoppers wanting a family van or large sedan.

Comments to “Congress Considers Gas Guzzler Rebate”

  1. [...] all of those bullet points are met, there is another hurdle in the gas guzzler rebate- finding a new or used SUV that gets 25% more MPG than the governments 21.3 MPG minimum for a light [...]

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