Would giving cash rebate for new hi gas mileage cars be better than "cash for clunkers?" No trade-in required?
For example, many "clunkers" probably average about $1,500 value. so many buyers are saving only about $2,000 or $3,000 on the purchase, not $3,500 to $4,500. What if we just offerred a $2,000 to $3,000 rebate on new fuel efficient cars, with the most efficient getting the biggest discount. Owners could then sell their clunkers on Craig's List or by some other means. This may even keep used car prices lower for low income people, and would still stimulate sales of newer cars.
The point of Cash for Clunkers is to get the low fuel economy cars off the road and ease the dependence on foreign oil.
