'Cash for Clunkers' Plan Looks to Increase MPG
Consumers can receive $3,500 to 4,500 for turning in their low-mpg vehicles.
A compromise "Cash for Clunkers" plan being debated in Congress would give consumers up to $4,500 if they turn in their old car and buy a new, more fuel-efficient replacement, according to a New York Times blog by Ken Belson.
Under the plan, which includes elements of two competing bills in the House and another in the Senate, consumers can turn in cars or light-duty trucks that get less than 18 miles a gallon. If they buy cars with mileage ratings of at least four miles a gallon more than their old cars, they will receive a voucher worth $3,500. If they buy cars that get at least 10 miles a gallon more than their old car, they receive $4,500. They can get vouchers for turning in light-duty trucks, large light-duty trucks and work trucks as well.
Owners of any "work truck"-pre-2002 pickups and vans weighing 8,500 to 10,000 pounds-would be eligible for a $3,500 voucher to be used in the purchase of "a new work truck in the same or smaller weight class, since newer vehicles tend to be more fuel efficient."
Congressional Democrats expect about 1 million older cars to be taken off the road. CNW Research said about 1.3 million vehicle owners "would be likely to take advantage of the clunker voucher program."
President Obama has said he supports a clunkers plan.
The plan calls for cars to have a combined fuel rating of 22 miles a gallon. The American Council for an Energy-Efficient Economy, a nonprofit group, issued a press release on May 6 saying the plan's fuel standards were too low.
"Federal incentives should promote vehicles with above-average fuel economy, at a minimum, so that American consumers are better prepared for the higher gasoline prices that are likely to return once the current recession ends," said Steven Nadel, the group's executive director.
Still, the domestic auto industry appears eager for this type of plan. General Motors said in a statement that scrappage programs implemented in other countries around the world have proven to be successful in reinvigorating car and truck sales.
More Small Fleet

Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools
Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.
Read More →
Boosting Last-Mile Fleet Uptime, Safety, and Value with AI Vehicle Inspections
AI-powered inspections are transforming last-mile fleets by replacing manual checks with highly accurate automated scans that detect defects in seconds. By giving fleet operations visibility into the daily condition of their vehicles, you can identify trends over the vehicle’s lifecycle that enable improved procurement decisions, route management, driver training and accountability.
Read More →
Five Ways Seat Belts Help Prevent Injuries
There are five ways seat belts protect occupants from injuries, according to the Tennessee Department of Safety and Homeland Security.
Read More →
It’s here: The 2026 Fleet Technology Trends Report
What does AI mean for fleets? Get the answer — and learn other top tech trends.
Read More →
Small Fleets, Big Impact: How Independent Drivers Power Wreaths Across America
Check out how small fleets and independent drivers power Wreaths Across America each December and why their impact matters more than ever.
Read More →
VMS Survey Finds 65% of Small Fleet Managers Run Operations Alone
A new VMS survey shows small fleet managers are stretched thin, with most handling operations solo and eager to adopt digital tools for relief.
Read More →
Tips for Driving Safely on Halloween Night
This video features a reminder from the Connecticut Department of Transportation (DOT) and the Connecticut Police Chiefs Association, urging drivers to prioritize safety this Halloween.
Read More →
AI, Access, and Uptime: VMS’s Next Chapter with David Prusinski
VMS’s new Co-CEO, David Prusinski, shares how an AI-first approach will give small fleets and repair shops the tools to compete like big players.
Read More →
Fleet Managers Share Winter Prep Tips: It's Never Too Early!
Three fleets share best practices to prep vehicles for winter and prevent downtime when the cold sets in.
Read More →
Hot Weather Driving Tips for Fleet Drivers
As we head into another potentially extreme summer season, the risks for fleet drivers remain high, from engine strain and tire blowouts to unpredictable traffic patterns. An expert shares advice on how fleet drivers can boost their safety during the steamy summer months.
Read More →
