Cash for Clunkers Information
Now that this program has been out for a week or so, let’s take a look at it. This is a federal government program . First of all, of course the government was concerned about running through the initial billion dollar funding within the first week – HELLO?!?! They’re giving away money, of course they’re going to run out. Did they think nobody would show up for a free $4,500?? Who was in charge of running the budget projections on this project? Jeez, no wonder the economy is in turmoil. So now it looks like they’re in the process of approving another 2 billion in funding to continue this obviously popular program.
ANYWAY, the program isn’t quite as simple as showing up with a junky car and driving off with a new one. There are rules of course, so let’s look at the basics to see if you qualify:
- 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 program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.
And another thing to know, you have to have owned the vehicle for at least one year. You should also be sure that you can really afford the new or leased car. Just because you’re getting a big discount doesn’t mean this might be the best decision for you. Be informed and think it through!!
Go to the CARS website for more information
UPDATE: This government program is ending on Monday, August 24, 2009. No more Cash for Clunkers after that date….
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