The U.S. House of Representatives passed the "cash for clunkers" bill Tuesday in a 298-119 vote. The bill has not yet been approved in any format by the Senate yet.
The House bill, would provide cash vouchers of as much as $4,500 to consumers to trade in their older vehicles. Consumers who trade in cars with a fuel economy of 18mpg or less would qualify for a $3,500 voucher toward purchase of a new car with a fuel economy of at least 22 mpg. A $4,500 voucher could be obtained if the new car purchased gets 10 mpg or more than the trade in.
A similar program in Germany is credited with raising sales by more than 10 percent.