The voucher is to be given to those who turn in their at least 8 year old vehicles when they purchase a new one. Called Consumer Assistance to Recycle and Save bill (CARS), the act is considered by all parties involved "a win-win-win" deal for consumers.
"The CARS Act will achieve many goals: consumers will finally get a break to purchase more fuel-efficient vehicles; we will all benefit from a reduction of CO2; and the auto industry will get a jumpstart to spur sales. This legislation will help consumers, stimulate our economy, improve our environment, reduce our dependence on foreign oil, and help our domestic auto and related industries, upon which millions of American families depend for employment," the congresswoman told the aforementioned source.
To benefit from the incentive, except the 8 year old requirement for the used vehicle, consumers must choose to buy a car that is worth at most $35,000. The $5,000 voucher is only valid when buying a North American built car, while the off the continent ones are to benefit from a deduction of only $4,000.
Car manufacturer's officials are pleased with CARS. Rick Wagoner, GM CEO, said 'these kind of programs can have a huge impact. "It would be very helpful to have something like that here in the United States."
The CARS act also states that those who chose to turn their cars in and give up owning a car will receive a transit voucher. This will encourage mass transit, further adding to the environmental value of the bill.
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