A green car nation

'Cash for Clunkers" won't single-handedly save the environment, rescue the beleaguered auto industry, or spare consumers from financial distress.
But the new $1 billion federal program promises a little help in all three areas, a bit of political symbiosis that explains why the plan motored through Congress three weeks ago on the back of an Iraq war-funding bill.
Once it gets rolling later this month, the program will offer incentives of $3,500 or $4,500 to those who buy or lease a more energy-efficient new vehicle. The goal is to get people to trade in a qualifying gas-guzzler - car, SUV, or light truck - for a comparable vehicle that gets substantially more miles per gallon.
The program's narrow focus has drawn criticism. Still, lawmakers are hopeful that it will make a small dent in energy use and pollution, as well as jump-start depressed auto sales. Without it, automakers are on pace to sell just 10 million new vehicles in the United States this year - down dramatically from 16 million in 2007 and 13 million in 2008, according to Edmunds.com, which compiles data on the industry.
One limitation is the window of opportunity. Although the rebates theoretically became available Wednesday, they are unlikely to spur sales until final procedures are announced, probably around July 24. Until then, car dealers could be on the hook if they credit buyers with incentives and are unable to collect from the government.
At the other end, the program expires Nov. 1 - or whenever the money runs out. Given that its backers initially proposed spending $4 billion to promote the purchase of a million vehicles, and that a similar program boosted Germany's car sales 40 percent in May, the spigot could run dry before November.
Of course, Congress might relent and extend the program. And meanwhile, the funding cap may help by pushing fence-sitters to act. Area dealers say Cash for Clunkers already has captured buyers' attention and may even be dampening sales as vehicle-shoppers await the help.
"We're having customers come in and ask about it every day, or say that they're waiting for it every day," said Ross Choate, managing partner for the John Kennedy Ford, Mazda, and Subaru dealerships in Philadelphia's suburbs.
After a relatively good May and early June, Choate said, sales slowed as Cash for Clunkers drew headlines.
"I do think it's holding people up," he said.
Here are answers to some key questions about the program, formally called the Car Allowance Rebate System:
Which cars qualify? To be eligible for the incentive, a buyer must bring in an operable car that is less than 25 years old and that gets a combined EPA city-highway average of 18 m.p.g. or less. The buyer must have owned and insured the car for the last year - you cannot buy a clunker just to make the trade.
Economically speaking, the car also must be suitable for scrapping - if it is valued at more than $4,500, it may be worth more as an ordinary trade-in, since any car turned in under the program must be junked.
Kelley Blue Book has a online calculator at http://www.kbb.com/kbb/cash-for-clunkers/default.aspx.
What do I do next? To get any incentive, you must buy a new vehicle that averages at least 22 m.p.g., and also at least 4 m.p.g. more than the "clunker." To get the larger $4,500 incentive, the new car must beat the old one by 10 m.p.g.
One other requirement: The new vehicle's manufacturer's suggested retail price (MSRP) cannot exceed $45,000.
Some new cars obviously qualify - think Toyota Prius, Mini Cooper, or Pontiac Vibe. So do most smaller cars.
But, depending on your current vehicle, so may some midsize or larger sedans, and plenty of non-hybrids, such as Toyota Camrys, Hyundai Sonatas, and four-cylinder versions of the Ford Fusion and Mercury Milan. To check models' mileage, go to www.fueleconomy.gov.
Can I junk an SUV or minivan? Yes, and you may be able to use the incentive for a new one, too, which is one of the law's provisions that angers some critics. New SUVs and other vehicles classified as "light-duty trucks" under the law are eligible if they get at least 18 m.p.g.
For the $3,500 incentive, the new light truck must get at least 2 m.p.g. more than the old one. For $4,500, it must get at least 5 m.p.g. more.
Certain larger trucks weighing up to five tons also may qualify. For more information on eligibility and answers to other questions, go to www.cars.gov.
Will this truly help the environment? Yes, but only at the margin.
House backers estimate average savings per vehicle of 250 gallons a year - plausible if you consider that a car averaging 15 m.p.g. needs 1,000 gallons of gas to travel 15,000 miles a year, compared with 600 gallons for a car that gets 25 m.p.g.
At that rate, replacing 250,000 gas-guzzlers should yield an annual savings of 62 million gallons, assuming drivers will not drive more in more efficient vehicles, a premise some critics contest.
But if it is a step in the right direction, it is a small one. According to the Energy Information Administration, U.S. motorists consume 390 million gallons of gasoline each day.