Senate passes "Cash for Clunkers" bill

Some sport utility vehicle owners who are ready to downsize might want to hold off a little longer on buying a smaller vehicle.

The "Cash for Clunkers" bill is now on it's way to President Barack Obama's desk after the Senate passed it overwhelmingly, Thursday night.

The measure is hailed as a new deal for the auto industry and the environment.

The "Cash for Clunkers" program is designed to get the economy rolling again. Dealers sell new cars and get old gas guzzlers off the road. But car dealers still have reservations about how well the program works.

Paul Stasiak, president of the Niagara Frontier Auto Dealers Association says the idea is good, but western New Yorkers are known for our frugality.

Stasiak said, "Most people are going to keep this car and drive it until it is dead, so to speak, and efficiency is not as critical to them as the economics."

How does "Cash for Clunkers" work?

If your old light truck or SUV gets 18 miles to the gallon, or less, a new vehicle will get you a $3500 dollar voucher, if it gets at least two more miles to the gallon, $4500 dollars, if it gets you at least five more miles. The vouchers are the same if your gas-guzzling passenger car gets 22 miles a gallon, or less.

Chevy dealer Duane Paddock told News 4, there are still a lot of unanswered questions, including who takes responsibility for getting the clunkers off the road.

By law, the trade-ins have to be destroyed, but Paddock thinks the concept is great, "There are a lot of vehicles out there, that are ready to come off the road, that maybe only have a value of $1,000. Then you are able to get a credit for $3500 or $4500. That is going to spur on business."

Senator Chuck Schumer is encouraging New Yorkers to go for their piece of the action, quickly. Once the billion-dollar package is spent, it's over.

To qualify for the program, your clunker has to be less than 25-years-old.

Click here for a link to the government's guide for the program.