Legislation aimed at giving owners of older cars a financial incentive of up to $4,500 to upgrade to a newer model has recently been introduced in Congress. Known as “Cash for Clunkers,” sponsors of the measure say its intention is to remove gas-guzzlers and polluting older models from the roads, plus give the ailing auto industry a shot in the arm with added sales. Consumer participation in the program is voluntary. (The economic stimulus bill that has recently passed through the Senate compliments this bill by encouraging new-car sales through tax credits.)

Under the “Cash for Clunkers” bill, owners of 1998 or older models rated at 18 mpg overall or less would get a voucher of $2,000 toward the purchase of a new vehicle capable of 25 percent better fuel mileage than Department of Transportation Corporate Average Fuel Economy (CAFE) targets for that class of vehicle. The amount would rise to $3,000 for a 1999-’01 model, and $4,500 for a 2002 or newer. All vehicles would have to be drivable and registered, and so-called clunkers turned in would be scrapped. Lesser amounts could be applied toward a used car (about 25-33 percent of new car offers), as long as it’s a 2004 or newer model. Owners could also opt for a public transit credit instead.

Supporters say the plan could take as many as one million older vehicles off the road each year during the four-year program, and save as much as 80,000 barrels of oil a day. The National Automobile Dealers Association has expressed its support for the measure.

But some car enthusiasts have expressed concerns that collectable cars and parts might be lost. Seven automobile aftermarket trade groups have banded together to oppose the bill. The Specialty Equipment Market Association (SEMA)--an organization representing the car parts, accessories, and customizing industry--has asked its 7,358 member companies to oppose it. SEMA has also said the bill would put affordable transportation further from reach for low income people, and that poorly maintained vehicles are a bigger pollution problem than older cars.

—Jim Travers

Update: You can check the EPA fuel economy rating on your current vehicle, clunker or otherwise, at fueleconomy.gov.