Tuesday, July 07, 2009

Cash for Clunkers

"What was once known colloquially as Cash for Clunkers has been given the official government name of CARS – Car Allowance Rebate System. As soon as President Obama signed the bill, scammers were already thinking up ways to take advantage of the system. Here’s an explanation of how the new law works and how you can take advantage of it legally."

From the official website - primary color, not shockingly, is green.

While the CARS Act makes transactions on and after July 1 potentially eligible for credits under the CARS program, interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued. Issuance will occur around July 23.

Important Things to Know

*Your vehicle must be less than 25 years old on the trade-in date
*Only purchase or lease of new vehicles qualify
*Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
*Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
*You don't need a voucher, dealers will apply a credit at purchase
*Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
*The vehicle that you are trading in is required to be destroyed. Therefore, the value you negotiate with the dealer for your trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to you and estimate of the scrap value of your trade-in vehicle.

Lots of other details explain just how much of a rebate one can get. The short answer: depends on the fuel efficiency of the new vehicle vs. old one.


CoolHandLuke said...

I just returned from the local Ford dealership and was told that they will be allowing people to cash in their "clunkers" on July 24th. I asked them about the details and was told to actually research online b/c they were not informed about everything yet. LOL

I did my research and found that this is a sweet deal. There is a guy documenting this whole new clunkers deal at www.slickbudget.com and he lays out all the info anyone needs for deciding if this is worth while for them. Very interesting read.

Ju said...

while this was suppose to be for consumers, it is not. scams abound, buyers beware. check this : http://butasforme.com/2009/07/17/cash-for-clunkers-the-ultimate-bait-and-switch-marketing-tool/

Anonymous said...

This program is not for the environment! A brand new vehicle that only gets 22 MpG should not qualify for this program (I drive a 10 year old vehicle with plenty of power and get an official 25 MpG (in real life its closer to 28-30) out of it. So, why are older vehicles excluded that have a better mileage than 18 MpG which could be replaced by vehicles and get 10 and more miles improvement to the gallon?
This is a program to boost the big 3 in Detroit and the program requirements had to be lowered to such low levels because otherwise the big 3 could not sell anything within this program due to their lack of real fuel efficient cars.
Don't get me wrong, I have no problem in helping the US automotive industry, but please call it by its right name!