Cash For Trucks Bill Passes

Yes, I know it technically covers all "clunkers," but, whether it was the government's intention or not, I'm thinking it will mostly be SUVs and light trucks that are traded in under the Community Assistance to Recycle and Save Act, as passed by the House anyway. And I suppose that's better than nothing. But what I don't understand is why the CARS Act ("CARS," get it?) makes things so difficult on people who would want to trade in actual, uh, cars.

The basic rules covering light trucks and SUVs require the vehicle being traded in to get less than a combined 18 mpg according to the EPA. Also, it can be no older than a 1985 model. Swap that for a vehicle that gets at least 2 mpg better and the government chips in $3,500 toward your new ride; move to a car or truck that gets at least a 5-mpg improvement, and you get $4,500.

Now, there are still a lot of trucks on the road from the recent heyday of the late 1990s-early 2000s that do not get 18 mpg combined. In fact, after a quick glance at the EPA's official figures, it looks like every single full-size pickup or SUV from the 1985 model year on, as long as it packs a non-diesel V8, would qualify for the program. As would just about every body-on-frame SUV made during the eligibility period. And even though these owners couldn't move into another full-size truck — except for the Chevrolet Silverado/Suburban Hybrid and GMC Sierra/Yukon Hybrid — plenty of today's smaller SUVs, along with a larger number of cars, can get the 20 mpg that brings in $3,500. Buyers could even squeeze into a base Chevrolet Colorado or GMC Canyon to get to the magic number.

On the small SUV side, the pickings are pretty good, starting with the 2010 Chevrolet Equinox. This vehicle is already getting rave reviews, and I can tell you from personal experience it's quite sharp. And even the all-wheel-drive version gets a combined 23 mpg. The Ford Escape, a bit long in the tooth, would also qualify, even in six-cylinder/AWD trim. Going to the next size up, the Ford Edge and Ford Flex, and the Chevrolet Traverse, each come in at a combined 19 mpg. I'm betting Ford and/or General Motors could coax another mile per gallon out of these before the bill expires in a year.

For cars, however, things are a bit different. Well, the starting point isn't. You still need a potential trade-in that gets 18 mpg combined or lower. But the thing is, that's not that many cars. The big pigs from the late 1980s are, of course, eligible. But a post-1992 V8 Ford Crown Victoria, for example would not qualify. And by the mid 1990s, most midsize cars would fall off the eligibility list. When you reach the 2000 model year, still a decade in the past, even the Cadillac DeVille was bettering 18 mpg combined.

Then, as far as what your have to purchase to get your own personal bailout, you need a 4 mpg jump for $3,500 and a 10 mpg increase for the $4,500. The former is eminently doable; the latter, not so much. In nearly every case, if you're starting from a piece of basic transportation from Chevy or Ford, you'd have to move into something like a Chevrolet Cobalt or Ford Focus to get the big bucks.

So, let's recap here: Under the currently proposed legislation, if you own a "real" truck, it will be very easy for you to cash in to the tune of $4,500. You won't be able to get a "real" truck in return, but you could easily get into a "real" car or crossover. If you own a car, most people will be completely left out.

In the end, given the buying behavior in the U.S. market, where the Ford F-150 is still the top-selling vehicle, a bill that will primarily cover owners of trucks and still allows them to buy another "American-type" vehicle (size-wise) is at least step in the right direction.