Cash For Clunkers: Government Could Pay You $4500

The federal government wants to pay you for your old car... The only catch is that you'll have to replace it with a more fuel efficient one.

It's called the Cash for Clunkers program. The program's title is a little misleading... You won't actually have cash in your hand, but you will receive the cash indirectly as credit towards the purchase a new car.

President Obama and the House both back the plan which would give you up to $4500 dollars for your vehicle that gets less than 18 miles per gallon.... You will get the money if you purchase a car that gets at least 22 miles per gallon.

The Senate is expected to vote on the measure sometime in the next few days. Supporters are hoping this program will serve two purposes... The first being to get environmentally hazardous cars off the road and the second is to give the auto industry a much needed boost.

Jordan Bandenhop, a sales associate at Gene Messer, says, "We're pretty excited about it if it does pass. I get tons of people coming in here saying they have vehicles they would love to get rid of but they haven't had an opportunity yet. We're hoping if this passes that we're gonna get tons of new business out of it."

But not everyone is so optimistic. Congressman Mac Thornberry says in this time of economic turmoil giving thousands of dollars to people with old cars is a poor use of taxpayer dollars.

This new bill would mandate the old cars be destroyed, which means auto salvage yards would be hard pressed for inventory. Linda Pitman is the President of the National Auto Recyclers Association says, "It's bad for business. Auto recycling has been around since 1943 and we sell quality oem parts. This will only deter us from selling the good parts we know are there."