House Majority Leader Steny Hoyer and Senate Majority Leader Harry Reid have said they would like to fast track the Cash-for-Clunkers bill through the legislative process.
There's a legitimate fear that new car sales will further stagnate while buyers wait for the bill to pass, which could take a very long time if it's attached to the much broader climate change legislation. Says Reid "Cash for clunkers is really important. Every country in the world is selling less cars than they did before except one country: Germany. And in Germany they have a program for cash-for-clunkers. We need to do the same."
Germany, the first country to implement a car scrapping scheme, has seen new car sales improve by over 20% in each month since the plan's launch in February. Under the proposed legislation in the U.S., new car buyers would be eligible for a voucher worth up to $4,500 for trading in an older vehicle if the replacement manages at least 10 mpg better than their so-called clunker.
