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Car Allowance Rebate System – China Fast PCB Boards Produce – Electronic Assembly Services Manufactu by hi joiney
Legislative history Economist Alan Blinder helped popularize the idea of a scrappage program and the moniker cash for clunkers with his July 2008 op ed piece in the New York Times Blinder argued that a cash for clunkers program would have a tripartite purpose of helping the environment stimulating the economy and reducing economic inequality A number of organizations advised Congress in developing the program including ACEEE CAP Action Fund and SmartTransportation org Jack Hidary of SmartTransportation org and Bracken Hendricks of the Center for American Progress co wrote a paper which was distributed to Congressional offices in November 2008 describing the multiple benefits of a cash for clunkers program The House approved the creation of a cash for clunkers program with the 298 to 119 passage of the CARS Act Consumer Assistance to Recycle and Save Act H R 2751 The House bill sponsored by Rep Betty Sutton D Ohio allowed consumers to trade in vehicles with a combined fuel economy of 18 or less for new more efficient vehicles In the Senate Debbie Stabenow D Michigan and Sam Brownback R Kansas sponsored a bill very similar to the House s An alternative bill proposed by Dianne Feinstein D California Susan Collins R Maine and Charles Schumer D New York would have had a greater focus on increasing fuel economy Proponents argued that the alternative bill would lead to 32 more efficiency improvements than the House Stabenow Brownback version of the program The alternative bill would have required that the trade in vehicle have a fuel economy rating of 17 mpg or less and offered a three tiered voucher system ranging from 2 500 for a new car that is 7 mpg more efficient than a trade in to 4 500 for one that is 13 mpg more efficient Mileage improvement requirements would be less for light and heavy duty trucks Pre 1999 work trucks would be eligible for the 2 500 voucher regardless of mileage improvements The alternative bill also gave a 1 000 voucher for the purchase of a more efficient used car the House bill completely excluded used vehicles In the Senate the cash for clunkers legislation was inserted into a larger war supplemental funding bill Dissenting Senators raised a point of order under Rule 28 which prohibits insertion of provisions not previously passed by either house into conference reports The rule was overridden with 60 votes despite some senators including Sam Brownback being uncomfortable with a last minute change that called for the bill s funding to come from deficit spending rather than from the stimulus package that was originally agreed upon The larger funding bill passed by a vote of 915 in the Senate The Supplemental Appropriations Act 2009 was signed into law with the Consumer Assistance to Recycle and Save Program C A R S as Title XIII The program received an initial allocation of 1 billion out of the 4 billion estimated cost funded by the U S government and the program time length was July 1 November 1 It was implemented by the NHTSA which had 30 days from the approval of the bill to post all program details online In response to the DoT estimate that the 1 billion appropriated for the system was almost exhausted by July 30 2009 due to very high demand Congress approved an additional 2 billion for the program with the explicit support of the Obama Administration On July 31 2009 the House of Representatives approved the extra 2 billion for the program and the Senate approved the extension on August 6 defeating all six amendments presented President Barack Obama signed the bill into law on August 7 and the appropriation was exhausted by August 24 2009 Eligibility criteria Vehicle must be less than 25 years old on the trade in date Only the purchase or 5 year minimum lease of new vehicles qualify Generally trade in vehicles must get a weighted combined average rating of 18 or fewer MPG some very large pickup trucks and cargo vans have different requirements Trade in vehicles must be registered and insured continuously for the full year preceding the trade in Trade in vehicles must be in driveable condition The program ran from July 1 2009 until August 24 2009 The program requires the scrapping of the eligible trade in vehicle and that the dealer disclose to the customer an estimate of the scrap value of the trade in The scrap value however minimal will be in addition to the rebate and not in place of the rebate The new car bought under the plan must have a suggested retail price of no more than 45 000 and for passenger automobiles the new vehicle must have a combined fuel economy value of at least 22 mpg Last minute car ineligibility According to USA Today the U S Environmental Protection Agency EPA revised its mileage estimate list just before the start of the Car Allowance Rebate System program For example the 1991 Dodge Grand Caravan is listed below as ineligible because the 1991 Dodge Grand Caravan with a 4 cylinder engine has an EPA combined mileage of 19 and is not eligible however the V6 3 3L and 3 8L engines in these vehicles have EPA combined mileage of 18 and thus are eligible The changes made some of the following cars with certain engine configurations ineligible Ineligible Cars 1987 Alfa Romeo GTV 1987 Alfa Romeo Milano 1987 BMW 5 Series 1987 Chevrolet S10 Blazer 2WD 1987 Dodge Caravan Grand Caravan Ram Van 2WD 1987 Dodge Shadow 1987 Ford Aerostar Van 1987 Ford LTD Crown Victoria 1987 Ford LTD Crown Victoria Wagon 1987 GMC S15 Jimmy 2WD 1987 Lincoln Continental 1987 Lincoln Mark VII 1987 Lincoln Town Car 1987 Mercury Grand Marquis 1987 Mercury Grand Marquis Wagon 1987 Plymouth Sundance 1987 Plymouth Voyager Grand Voyager 2WD 1987 Plymouth Voyager Grand Voyager 2WD 1987 Porsche 944 1987 Toyota Truck 4WD 1988 Mazda 929 1988 Peugeot 505 Sedan 1988 Peugeot 505 Sedan 1988 Toyota 4Runner 4WD 1989 Mazda 929 1989 Peugeot 505 Sedan 1989 Porsche 911 Carrera 1990 Audi 80 Quattro 1990 Dodge Caravan Grand Caravan Ram Van 2WD 1990 Plymouth Voyager Grand Voyager 2WD 1990 Saab 9000 1990 Toyota 1 Ton Truck 2WD 1990 Toyota Truck 2WD 1991 Audi 80 Quattro 1991 Dodge Caravan Grand Caravan 2WD 1991 Dodge Ram 50 Pickup 2WD 1991 Lexus ES 250 1991 Mitsubishi Truck 2WD 1991 Plymouth Voyager Grand Voyager 2WD 1991 Toyota Camry 1991 Toyota Camry Wagon 1992 Acura NSX 1992 Dodge Caravan Grand Caravan 2WD 1992 Dodge Ram 50 Pickup 2WD 1992 Jeep Cherokee 4WD 1992 Jeep Comanche Pickup 4WD 1992 Mitsubishi Truck 2WD 1992 Plymouth Voyager Grand Voyager 2WD 1992 Saab 900 1992 Saab 900 1993 Dodge Ram 50 Pickup 2WD 1993 Dodge Stealth 1993 Jeep Comanche Pickup 2WD 1993 Mitsubishi 3000 GT 1993 Mitsubishi Truck 2WD 1993 Toyota Camry 1993 Toyota Camry Wagon 1994 Mazda B2300 B3000 B4000 Pickup 2WD 1994 Mazda MPV 1994 Mitsubishi Diamante Wagon 1994 Volkswagen Corrado SLC 1995 Kia Sportage 2WD 1995 Mazda MPV 1995 Toyota Tacoma 2WD 1996 Jeep Cherokee 2WD 1996 Nissan Truck 2WD 1996 Toyota Supra 1996 Volkswagen Jetta GLX 1997 Chrysler Concorde 1997 Chrysler New Yorker LHS 1997 Dodge Intrepid 1997 Eagle Vision 1997 Kia Sportage 4WD 1997 Mercedes Benz C3 AMG 1997 Nissan Truck 2WD 1997 Toyota Supra 1997 Toyota T100 2WD 1997 Volkswagen Jetta GLX Karen E Aldana with the National Highway Traffic Safety Administration said the agency initially wasn t aware of what happened On the final rule we said we d use their fueleconomy gov ratings so the fact that they re changing it all of a sudden if that s happening this is the first I ve heard of this NHTSA spokesperson Rae Tyson later said that anyone that had made a deal before July 24th had done so at their own risk Hyundai Motor America had been helping its dealers close Cash for Clunkers deals early by providing them with cash advances equal to the expected CARS rebate a Hyundai spokesman said About 14 of Hyundai sales were Cash for Clunker deals according to the automaker Last month Hyundai sold about 38 000 cars It was unclear if any of Hyundai s deals so far were made ineligible by the changes said Hyundai spokesman Phil Leinert or how the automaker might deal with situations in which a car s eligibility changed The EPA gave no reason its ratings were inaccurate or why some went up according to USA Today Karl Brauer editor in chief of Edmunds com said It s unfortunate that consumers who had been researching and planning to trade in their vehicle are now left in the dust Consumers acting in good faith should not be penalized for undisclosed and last minute changes made by the government Kevin Smith Edmunds com editorial director said in a statement The U S Department of Transportation has ruled that deals involving cash for clunkers trade ins based on old EPA mileage numbers and consummated before July 24 will be honored but that deals consummated after July 24 on vehicles that became ineligible as clunkers due to mileage ratings changes will not be honored Credit Depending on the type of car purchased and the difference in fuel economy between the purchased vehicle and the trade in vehicle the amount of the credit given in the form of vouchers to eligible customers is either 3 500 or 4 500 New car dealers will be able to reduce the purchase price by the amount of the voucher for which that the customer is eligible Engine disablement and scrappage criteria A disabled and marked Cash for Clunker Toyota Previa trade in Death Row of traded in SUVS and trucks under Cash for Clunkers Dodge Caravan turned in for Cash for Clunkers note paper placard on dash To ensure that vehicles traded in under Cash For Clunkers will not be resold by dealers the program outlines a procedure for destructively disabling the engine and thus also precluding the possibility that any mechanical engine components might be salvaged to be used in the repair of any other vehicles The motor oil is drained and replaced with a sodium silicate solution then the engine is started and run until the solution becoming glass like when heated causes engine internals to abrade and ultimately seize In addition the salvage or scrap facility which acquires the vehicle cannot sell any powertrain components from the scrap vehicle This includes the disabled engine most specifically the long block components the transmission transaxle and in some cases the axle assemblies The salvage or scrap facility can sell any other component from the scrap vehicle until they are ready to crush and or shred the vehicle The salvage or scrap facility has 180 days to ultimately crush and or shred the vehicle citation needed The outlined procedure says that running the engine at 2 000 RPM should disable the engine within a few minutes if not then allow the engine to cool off before repeating the procedure Hazards associated with the intentional overheating and destruction of the engine include rupturing radiator and hot water steam motor oil ejection toxic fumes and fire By completely disabling the engine the CARS program avoids illegal schemes such as the one discovered in Germany where authorities found that an estimated 50 000 scrapped vehicles have been exported to Africa and Eastern Europe In contrast with the U S program the German program only requires dealers to drop off the scrapped vehicles at junkyards thus allowing the illegal exports Auto recyclers and dismantlers have criticized the program due to requirements that the engine is to be disabled to prevent re use of the car To auto recyclers a car s engine is considered to be the most valuable part of a junked car Some recyclers have refused to participate in the program as well due to the limited profit potential of junking a car brought in under CARS National Motor Vehicle Title Information System After Hurricane Katrina vehicles that were declared as total losses in one state were transferred to other states and resold to unsuspecting consumers with clean titles In order to avoid clunkers declared under the CARS program and that could also find their way back onto the used car market through similar surreptitious means the federal government set up the National Motor Vehicle Title Information System NMVTIS to track totaled vehicles and prevent their resale Currently 28 state motor vehicle agencies participate or contribute to NMVTIS and 11 others are working toward participation All states are required to be fully participating by Jan 1 2010 The CARS program required that recyclers report the Vehicle Identification Numbers VINs and the status of clunker to the National Motor Vehicle Title Information System NMVTIS within seven days of acquiring the vehicle Used car shoppers by paying a fee can have access to vehicle history reports via electronic database at www vehiclehistory gov The database contains information on vehicles from insurance companies junkyards and salvage yards The NMVTIS is the sole repository for clunker data Program results Auto Observer said there was one major technological glitch in the program Government officials said the public site for customers and the site for dealer sign ups were on the same server which became overloaded The site was taken down the night of July 24 2009 while the two functions supposedly were separated and put on two different servers Auto Observer reported Dealers also had difficulty getting paperwork processed Given the uncertainty of being paid dealers decided to wait on destroying the old cars By July 29 150 million of the 1 billion had already gone to new purchases Dealers have had a higher volume of potential customers partly because of other incentives offered by the manufacturers and the sellers Some dealers believed the increase was only temporary However many people who visited car dealers found out their cars were not eligible but they bought cars anyway A lot of people who were able to participate were buying anyway but their trade in value jumped significantly According to House Speaker Nancy Pelosi the cars purchased had higher gas mileage than what the bill required The National Highway Traffic Safety Administration reported 23 000 participating dea
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