The “Cash for Clunkers” program is a $1 Billion plan meant to help the environment, automakers and drivers trade out their old gas guzzling clunkers into something a little bit more eco-friendly.
Tax payer money will be used to give people a credit of up to $4,500 to replace their clunkers with the idea that they will buy certain new vehicles that are more fuel efficient and eco-friendly.
“The program already has about 16,000 registered auto dealers signed on; and some say showroom traffic is already up since the program’s official start on July 1.”
“About 250,000 cars are expected to be junked through this program before it ends on November 1. This will hopefully jump start auto sales — which have been down about 35-percent across the industry.”
The plan is not met without opposition though. There are some stating that the program is bad for business.
Auto recyclers for example are saying that they will lose a lot of money due to destroying old engines and parts as opposed to selling them.
The plan also can hurt lower-income buyers who can’t afford brand new cars, even with the government credit, because these motorists will be forced to pay higher prices for spare parts.
Check out the original article: Is cash for clunkers a good idea?
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