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The American car enthusiast, who also owns a Chevrolet Prizm, may be in the market for an upgraded vehicle soon. Last Thursday, the Senate approved a national plan called “Cash for Clunkers,” which gives New Yorkers $3,500 to $4,500 cash if they trade in their old, inefficient cars, trucks and SUVs for more fuel-efficient models.
The purpose of the legislation, which is part of the FY 2010 Supplemental Bill, is to speed up the removal of inefficient, gas-guzzling cars from the road and replace them with more environmentally friendly alternatives, lawmakers said. At the same time, with nearly 100,000 car owners in the city qualifying for the rebate, 35,600 of whom reside in Queens, legislators hope the plan will alleviate the impact of gas prices for many New Yorkers.
“This is a smart investment in our nation’s economy and environmental future that will also help jumpstart the struggling car industry,” said Sen. Charles Schumer (D-New York), who was a co-sponsor on the original Cash for Clunkers bill, introduced in January.
To qualify, all trade-in vehicles must be in drivable condition and be continuously insured and registered to the same owner for at least one year. All vehicles must have a combined fuel economy value of 18 miles per gallon or less. The value of the voucher then depends on the class, age and fuel economy of the vehicle and the new vehicle must have a manufacturer’s suggested retail price of less than $45,000. The program will run from July 1 to Nov. 1 with $1 billion in emergency funding, but Schumer cautions New Yorkers to act fast, before funding runs out.
To qualify for a voucher, drivers must swap their cars for newer models that get at least 22 mpg or higher. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If a driver manages to score a new car that is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
The rules for SUVs and trucks differ slightly. Work trucks must be pre-2002, regardless of mpg. If the mileage of a new truck or SUV is at least 2 mpg higher than the old vehicle, owners get $3,500. To qualify for $4,500, the SUV owner must trade in the old vehicle for one that gets at least 5 mpg’s or higher. When trading in an old light-duty truck for a new one, an increase of 1 mpg will yield a $3,500 rebate, while a 2 mpg increase will score a driver the $4,500 rebate.
Although it may sound like a fraction of an increase in miles per gallon, Robert Sinclair, a spokesperson for the American Automobile Association of New York, said the program is actually taking a great leap.
“The average mile per gallon in the U.S. is worse than it was in 1984 — which is due to the growth of SUVs and the proliferation of trucks,” Sinclair said. “Even a two mile-per-gallon increase will make a difference. This is a very enlightened proposition.”
One aspect of the Cash for Clunkers plan that may be surprising is car owners will not be required to trade in their old vehicles for American cars. Even so, Sinclair hopes the program, in conjunction with federal loan money some carmakers will be receiving, will motivate the American car industry to compete with foreign manufacturers by creating more fuel-efficient models.
“Americans have seen the light,” he said. “They know they need to have smaller, fuel efficient cars, but American vehicles haven’t kept up. All of the American manufacturers have something to offer. We just need more of it.”
At Best Ford dealership in Floral Park, leasing Manager Chris Finnigan said he is eager to introduce Ford’s greener models to car owners who qualify for the rebate. By today’s standards, it’s been a red-letter week for Ford. Not only did the Detroit automaker receive a $5.9 billion loan Tuesday to assist in making 13 of its models more fuel efficient, its chief executive also vowed to invest $14 billion in advanced technology in the next few years — three slivers of good news that may have contributed to Finnigan’s buoyant spirit.
“We’re very excited and the public should be excited for $3,500 or $4,500 to spend on better cars that work well,” Finnigan said. When asked to specify a few Ford models that Finnigan thinks rebate holders should consider, the list began with the Ford Fusion and Fusion Hybrid.
Thomas Doerrer, of Ozone Park, would be open to the idea of trading in his 1998 Mercury Villager for an American model, but said he has had to pump so much money into his current vehicle, that he’s hesitant to go that route.
“I would buy American, as long as I could get a good deal with it and as long as it doesn’t give me problems,” Doerrer said. “Right now, I would look at the Toyota Corolla.”
Despite the absence of specific language in the bill that would insist rebate holders choose American, some car owners, like Big Blue’s, wouldn’t conceive of any other option.
“Years ago, you could buy a Toyota or a Volkswagen and they’d last a million years,” Latella said. “But those cars are only getting more expensive and they’re nowhere near what they used to be. American workmanship has really improved over the years. Plus, I’ve always had a Chevy.”
And what car would replace faithful Big Blue, should a $4,500 rebate check appear in Latella’s hands tomorrow?
“I’d probably go the route of the Chevy Cobalt,” she said. “It’s a sin to give up my wagon, but the car is so old, it’s getting to the point where it’s not even identifiable as a car. The rebate makes buying a new car more cost effective. I’d do this in a heartbeat.”
Under the program, consumers can also trade in a pre-2002 work truck, defined as a pick-up truck or cargo van weighing between 8,500 and 10,000 pounds and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a pick-up van weighing between 6,000 and 8,500 pounds.
To learn more about the Cash for Clunkers program and sign up for a voucher, visit cashforclunkersheadquarters.com.
