Feds to launch cash-for-guzzlers on July 23

Posted on Tuesday, June 30th, 2009 at 1:08 PM EDT.

The U.S. Transportation Department said it expects to issue final rules for the cash-for-guzzlers program around July 23 and warned dealers that they are legally responsible for any trade-ins structured before that date, the Automotive News reported.

The federal guidance seeks to clear up some confusion that has arisen over when the $1 billion program goes into effect, the paper said. The legislation, signed into law last week by President Barack Obama, says consumers who swap their vehicles for new, more fuel-efficient cars or trucks are potentially eligible for federal credits starting Wednesday, the publication reported.

The program seeks to spur U.S. auto sales while improving the fuel economy of vehicles on the road, the paper said. Consumers will be eligible for $3,500 or $4,500 credits if their current cars or light trucks get 18 mpg or less and the new vehicles they are buying get certain amounts more, the story said. (Automotive News)

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