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Published May 20, 2009, 09:42 PM

Proposal to give car buyers credit towards a newer car

Fargo, ND (WDAY TV) - A proposal in Washington D.C. could help you afford a new, more fuel efficient vehicle, but it may have some side effects for those choosing to stick with older models. WDAY 6 Reporter Sarah Klaphake joins us live with more. This proposal, making its way through the house is being called "cash for clunkers". If you get rid of an old car for a new one with better gas mileage, you could get up to a 45-hundred dollar voucher to put towards your big purchase.

By: Sarah Klaphake, WDAY

Fargo, ND (WDAY TV) - A proposal in Washington D.C. could help you afford a new, more fuel efficient vehicle, but it may have some side effects for those choosing to stick with older models. WDAY 6 Reporter Sarah Klaphake joins us live with more.

This proposal, making its way through the house is being called "cash for clunkers". If you get rid of an old car for a new one with better gas mileage, you could get up to a 45-hundred dollar voucher to put towards your big purchase.

“There’s no question it would have a good impact, depending upon, again the devil is in the details. If they keep it simple, keep it fast and keep it cash.”

Dan Anderson is the General Manager at Muscatell Automotive. He's hoping the proposal will include foreign cars, like the Kias they sell.

“By excluding them, I think you're saying something to the workers, to the workers of those companies, and kind of taking the consumers voice to vote with their money away.”

Some predictions show one million cars could be sold because of this deal, helping a struggling business.

But it may also leave old cars in the dust at places like Seventh Avenue Auto Salvage

“We go through about 1300 cars a year.”

The proposal could require old cars to be destroyed, crushed, and recycled, but that would actually hurt Richard Preston's business.

“It would have really no value to me, other than the weight of scrap metal if I can't sell the motor, tranny, mechanical pieces.”

Preston says if he can't sell old parts from some cars, people still driving older models might have a hard time fixing them for a reasonable price.

Representative Earl Pomeroy tells us he thinks the proposal makes sense and would increase sales at a time carmakers are struggling while getting old wrecks off the road.

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