The idea behind the cash for clunkers bill is to take less fuel efficient vehicles off the road and replace them with more fuel efficient vehicles by offering vouchers for rebates off the purchase of the new car based on increase in average MPG. Cars that are turned in, therefore, are not meant to be reintroduced to driving conditions in their poor fuel efficient manner but rather scrapped for parts and materials. See the referenced Business Week article for suggestions on how the program could be improved for Phase 2 of cash for clunkers.
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