January 30, 2009; News 12 This Morning
If you're looking for a new set of wheels, Uncle Sam is looking to help you out. With auto sales at near crisis levels, Washington is trying to figure out a way to get more keys into the hands of Americans.
Lawmakers are talking about one plan that would make new car costs tax deductible. Auto loans of up to $49,500 would qualify.
The second plan is more politely known as "fleet modernization" but more affectionately as "cash for clunkers." Owners of older cars would get vouchers worth toward the purchase of newer, more fuel-efficient vehicles. Those vouchers could be worth thousands, which is good news since so many of those gas guzzlers are hard to sell these days. For the customer to get that cash, the car dealer would have to certify that the trade-in was getting scrapped and not resold. Some estimates say if this became law, it could save 80,000 barrels of oil everyday.