Cash for Clunkers Questions

Congress considering offering $4,500 bailout to SUV drivers in exchange for something only slightly better.


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When we heard that Congress was considering legislation that would allow SUV owners to trade in their gas-guzzling vehicles for cash, our first reaction was, hey, that’s not a bad idea. Unfortunately, things are never as simple as they seem, and this deal is not quite the victory for the environment we initially thought. In order to qualify for the $4,500 paycheck, car owners are asked to trade in their current vehicle for one that gets better gas mileage, which is great, but unfortunately the requirements are pretty lax. Cars that get 22 mpg, SUVs that get 18 mpg, and trucks that get 15 mpg would all qualify as “fuel efficient.” Do those numbers seem suspiciously low to anyone else? Just checking.

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