Congress’ quick action on a Cash for Clunkers $2 billion extension gives more hope to both automakers reeling from their worst year ever, as well as car buyers looking for terrific deals. Designed to prime the auto market pump in the midst of America’s worst economic slump since the Depression, the Car Allowance Rebate System (CARS) program offers consumers a $4,500 trade-in voucher towards the purchase of a more fuel efficient model. Though several restrictions exist, the initial $1 billion appropriation for the program—expected to last roughly six months—was exhausted in less than a week. With the additional funds, millions more Americans are expected to take advantage of the once-in-a-lifetime offer.

The CARS program—popularly dubbed “Cash for Clunkers” by auto sellers and the media—has two distinct purposes. The first and foremost purpose was to give a boost to both automakers and dealerships reeling in the face of recent economic woes. By guaranteeing a trade-in voucher that is often much higher than the actual wholesale value of the vehicle for trade, it encourages consumers who otherwise would have waited to purchase a car to get down to their dealership today. Indeed, the necessity of emergency supplemental funds demonstrated the success of this effort in a way nobody predicted.

The other virtue of the cash program is an immediate and noticeable improvement in fuel consumption on US highways. The program is in general limited to trade-in automobiles which get less than 18 miles to the gallon, and a number of models are in fact ineligible. Dealers can inform consumers as to their car’s eligibility, and full information about exceptions is available online. In order to insure that the fuel efficiency gains are maintained, dealers are required under the law to actually destroy the cars traded in by using a special chemical which seizes up the engine. The environmental and geopolitical gains expected as a result were a major source of the bill’s bipartisan support.

While the Cash for Clunkers $2 billion extension gives more hope to shoppers looking for a great deal on a new car, many observers expect that even these new funds will be exhausted in a matter of days. Consumers who wish to exchange their gas guzzlers for a new, sleeker model are encouraged to get to a dealership today to take advantage of the savings. The CARS program is changing the way Americans drive faster than anyone predicted.

Cash For Clunkers

The Car Allowance Rebate System, or CARS, is a government program which allows consumers to trade in their older cars for new, more fuel-efficient vehicles. Better known as Cash for Clunkers, this program has energized car sales and provided a boost for the economy along the way.

Car owners with driveable vehicles no more than 25 years old and whose mileage estimates are 18 mpg or lower are eligible for credits of $3,500 or $4,500. Most dealerships are participating in this program. Dealers across the country have seen renewed customer interest, leaving no doubt that Cash for Clunkers has accelerated auto sales and energized the economy. Many customers whose car did not qualify for the credit have ended up purchasing a new vehicle anyway after visiting a showroom or speaking with a salesperson.

Because the $3,500 to $4,500 credit is not taxed as income, this is truly money that consumers will save when purchasing any new vehicle that gets at least 22 mpg.

The improved gas mileage of these new vehicles will immediately put money back into the consumer’s pocket. This is money which can then be spent on new clothing, dining out, or entertainment. This is just another facet, beyond increased auto sales, in how Cash for Clunkers will benefit the economy.

An even greater and more long-lasting benefit will be the increase of more fuel-efficient cars on the the nation’s roadways, lessening dependence on foreign oil and helping to protect the planet’s natural resources. These factors can only contribute to the financial well-being of the country and its consumers.

Complete information on which cars qualify, finding a participating dealership, how the program works for trucks, and the latest updates can be found at the official NHTSA website, www.cars.gov.

President Barack Obama announced a plan to raise emission and fuel standards in hopes to produce better fuel efficiency, ultimately leading to a cleaner environment. The plan proposes that automobiles will have to reach around 35.5 miles per a gallon by 2016. Details of the plan include regulating tailpipe emissions and a raised national standard on miles per a gallon; along with Bush’s 2007 fuel efficiency law and temporary regulations to jump start the process. Although the immediate reaction is criticism, officials note that the long term benefits will outweigh the immediate costs. So, while an instant burden may be placed on manufacturers and buyers, the future holds great potential.

One potential benefit of the future would be cheaper prices at the gas pump. Anyone driving a new fuel efficient car will notice the amount saved at the pump. The saved money pays back for the extra expense of buying the new manufactured cars. Long story short, fuel efficient cars are money efficient. Furthermore, spending less money on gasoline means, obviously, less gasoline is being purchased. White House officials claim the decrease in purchase nationwide would save around 1.8 billion gallons of oil consumption over the lifetime of the program.

Cleaner roads are another product of raised emission and fuel standards. Driving diesel trucks, gas guzzling hummers, and any other current form of carbon monoxide automobiles pollutes the road. While new cars will still function with gasoline, the byproduct, carbon monoxide, is decreased. CO gases are causes for green house gases and global warming. The reduction of poisonous byproducts is hailed by environmentalists. White House officials agree with the environmentalists stating that most Americans want cleaner air, water, nature—environment.

A general consensus over Obama and his advocates is the pros outweigh the cons. Critics may claim that initial car costs go up and safety goes down. However, consumers will still be provided with choice in car selection. Similar to current cars each one has their own safety rating and the choice is the consumers. Any way to put, the sleek efficient cars save money and the environment, save green and green, saves paper and trees.

Whether you are trying to protect the Earth’s natural resources or if you are simply someone who wants to see our country reduce its reliance upon foreign oils, you will be happy to know that the U.S. Department of Transportation has officially posted new fuel economy standards for cars and light trucks that will be released in 2011.  With the new, stricter guidelines, it will be far easier to find a vehicle that will be more fuel efficient.

The changes made to the U.S. Department of Transportation’s guidelines actually began back on January 26th, at which time President Barack Obama gave the department the directive to review technological, legal and scientific considerations in order to develop more stringent standards.

“These standards are important steps in the nation’s quest to achieve energy independence and bring more fuel efficient vehicles to American families,” said the U.S. Secretary of Transportation, Ray LaHood.

According to these new standards, vehicle manufacturers will need to improve the industry-wide average fuel economy to 27.3 miles per gallon.  Currently, the standards for 2010 vehicles are set at 25.3 miles per gallon.  The National Highway Traffic Safety Administration estimates that these new guidelines will reduce carbon dioxide emissions by about 8.3 million metric tons an will decrease fuel use by about 887 million gallons.

In addition to calling for increased overall fuel efficiency, the new guidelines have also implemented an attribute-based system that considers the size of each vehicle in relation to its fuel economy.  Furthermore, the U.S. Department of Transportation has already started to look beyond 2011 and is working on a multi-year plan that will call for the fuel economy of vehicles to become increasingly more efficient.  In order to develop this plan, the U.S. Department of Transportation is considering factor such as market conditions, technology and future product plans manufacturers already have in place.  In this way, the new plan will consider all stakeholders involved in the plan as well as other federal agencies such as the Environmental Protection Agency.