Contact: Jessica Smith, (202) 228-5185
Thursday, June 4, 2009 Kimberly Hunter, (202)228-5282
Program Will Provide Voucher Toward Purchase of New or Used Car,
Help Dealerships Manage Growing Inventories
Senator Jim Webb (D-VA) today introduced legislation to save jobs and boost automobile sales by providing a monetary incentive for consumers to trade in older vehicles for a new or newer, used vehicle.
Under the Automobile Voucher Program, consumers would trade in their five year old or older vehicles and receive a voucher worth $4,000 toward the purchase of a new car, or $3000 toward a used car if manufactured within the past three years. The measure was introduced as an amendment to H. R. 1256, the FDA tobacco regulation bill.
“With more than 3 million jobs tied to the viability of the automobile industry and the latest announcement of additional auto plant closures, this amendment would boost auto sales, help save American jobs, and make car purchasing more practical for more Americans,” said Webb.
Don Hall, President of Virginia Automobile Dealers Association, noted, “The bottom line is that dealers want to sell cars. Senator Webb’s proposal streamlines the process, simplifies it, and, at the end of the day, helps dealers sell cars. That’s good for the dealer, their communities, the manufacturers, and the economy.”
Sen. Webb’s legislative effort would aid automobile dealerships in Virginia and elsewhere that have been severely impacted by General Motors and Chrysler Car Company’s restructuring efforts.
“These dealers are faced with the need to liquidate their inventories quickly,” said Webb. “The Automobile Voucher Program provides a needed extra incentive to accomplish that goal. At the same time, it enables consumers to make individual decisions regarding what automobile purchase is best for them and their families—including purchasing higher efficiency vehicles or those with greater safety features.”
