The internet is consumed with information about the new Cash for Clunkers program, signed by President Obama. While some of the information you find may be helpful, most of it will probably be perplexing, engulfing, or even just plain hilarious.
I won’t be the recipient of any prestigious awards, but I will attempt to clarify the Cash for Clunkers program. With a shiny price tag of 1 billion dollars, the purpose of this bill is to renovate our roadways by the way of removing older vehicles that pose hardship due to poor fuel mileage, and in turn, boost vehicle sales as well as the economy as a whole.
The Consumer Assistance Recycle and Save Act of 2009 (CARS), affectionately referred to by the American public as the Cash for Clunkers program, provides that potential consumers can trade qualifying automobiles for a new vehicle and receive a cash voucher incentive toward the new vehicle price in doing so. What that means for you is that registered 91′ Firebird roosting in your garage could transform into a stout down payment for a new vehicle.
The older vehicle will be scrapped, and you can be the owner of a newer, more fuel efficient detail. In all reality, the government has yet to release all the details and explanations to dealer, and there will, inevitably, be a lot of stipulations. However, here’s an overview of the information that we do, presently, know about the Cash for Clunkers program:
Ok, so what type of car qualifies as a clunker in the Cash for Clunkers program? The car has to have been made within the last 25 years, and it has to have been registered and for at least a year before you trade it in. Plain and simple, scrap yard piles of steel, which formerly was a car, will not qualify. Your clunker has to have a maximum mileage rating of 18MPG, as set forth by http://www.fueleconomy.gov This information will, indeed, be verified before a trade in.
So the big question you want to know is how much money, exactly, will I receive with this new Cash for Clunkers Program? Well, that varies, and the main criterion is the new vehicle that you purchase.
For passenger cars, the new vehicle must have a minimum of 22 MPG. In addition, if you buy a car that has a 4 MPG advantage, then you’ll $3500 towards the purchase. If your new vehicle, on the other hand, provides at least 10 MPG benefit, then you will be the recipient of a $4500 credit towards the purchase of the new car.
For light trucks, SUVs, and minivans, the stipulations are a little different. The new auto must have at least 18 MPG, and you’ll get the $3500 credit for an improvement of only 2 MPG; the $4500 credit will be available to you if your increase is 5 MPG.
So what type of vehicle can you buy under the Cash for Clunkers program? It’s got to be new, unregistered, and have an MSRP below $45,000.00. If you want to lease a vehicle, you must sign a lease for 5 years, minimally.