Cash for Clunkers

Do you have an older model vehicle and in the market for a new fuel efficient model? Is your car on its last legs, and you do not want to deal with expensive repairs? Then the recent program instituted by the U.S. Government, Cash for Clunkers, may be the right program for you. The government’s “Car Allowance Rebate System” (CARS) has $1 billion allocated to the Cash for Clunkers program and takes gas guzzlers off the road.

So is Cash for Clunkers right for you? In order to qualify for the program, your trade-in model must meet the following requirements:

• Your trade-in must have been manufactured less than 25 years ago.

• Your trade-in must have a combined fuel efficiency rating of 18 miles per gallon or less.

• Your trade-in must be in drivable condition.

• Your trade-in must be insured and registered to the same owner for the past full year.

In addition to the above requirements for the trade in model, the new car bought must have a combined MPG rating of at least 2 more MPGs than your trade-in. Of course, if the value of the trade-in model is less than the rebate offered by the Cash for Clunkers program, then the Cash for Clunkers program is not right for you.

The rebate offered by the Cash for Clunkers program is either $3500 or $4500 depending on the fuel efficiency of the new model. If the new vehicle being purchased has a fuel efficiency of 5 MPG more than the trade-in vehicle, the larger rebate can be obtained. In addition, by electing to use the Cash for Clunkers program, the buyer is no longer in a position to negotiate a trade-in value for their older vehicle and has to accept the fixed rebate amount of either $3500 or $4500.

Thus, if you are in the market for a new car with great fuel efficiency and have an older model to trade-in with a value under $3500 or $4500, then Cash for Clunkers is the right program for you.

Related Articles of Interest:

1. Cash for Clunkers: Facts and Figures The CARS program, informally known as “Cash for Clunkers”, ended Monday, August 24th, 2009. Originally slated to cost $1 billion, Congress increased the total funds...
2. Cash for Clunkers Ends Monday The highly successful “Cash for Clunkers” program will end Monday, according to Transportation Secretary Ray LaHood. Part of the overall stimulus package, this program offered...
3. Cash for Clunkers $2 Billion Extension Passed After much positioning and worry, Congress has passed legislation that pours another $2 billion dollars into what President Obama is calling the most successful stimulus...
4. Your 230 MPG Chevy Volt: Get Insurance Rates From the successful Cash for Clunkers program to an increased interest in fuel economy in general, the new Chevy Volt has generated a great deal...