Analysts : Cash for Clunkers will most likely clunk
The US Government is set to pass the Cash for Clunkers program soon, where US President Barack Obama is set to sign the bill into law sometime this summer, but economic analysts are not too complacent of the success of the project.
Cash for Clunkers is a program set to promote recycling and reuse, significantly decrease carbon emissions due to faulty automobiles, and provide qualified US consumers with the opportunity to get a newer, better car with substantial help from the government.
However, analysts say that the program is just too complicated, stringent and picky for a significant number of US consumers to actually benefit from.
Any US consumer with a post-1984 automobile that clocks in at less that 18 miles per gallon is eligible to receive a $4,500 cash voucher from the US government to help towards the purchase of a new automobile. However, the requirements don’t stop there. The replacement car must have at least 4 miles per gallon more than the old one, should not exceed $45,000. The new car must be insured and operated by the buyer for at least one year. Some additional rules also apply for SUVs and trucks.
Estimates say that the program will have a lot of trouble converting even as little as 250,000 vehicles nationwide.