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 up to $4500 in rebates to car buyers who traded in certain older vehicles with poor fuel economy. “Cash for Clunkers” was designed to have a twofold effect, both reducing harmful emissions and giving the cash-strapped automobile industry a much needed boost in sales. Consumer reaction to the program was far more enthusiastic than predicted, necessitating additional funds to cover the cost of the consumer rebates. Despite continuing consumer demand, Lahood announced that applications for rebates will no longer be accepted after Monday, August 21, 2009.

Lahood indicated that the Cash for Clunkers program had already processed over $1.9 billion dollars in rebates, with over 450,000 dealer transactions already recorded by the Federal government. “This program has been a lifeline to the automobile industry, jump starting a major sector of the economy and putting people back to work,” Lahood said. Auto manufacturers saw the greatest increase in sales in their fuel-efficient passenger vehicles, with the White Hosue estimating an increase in gas mileage of approximately sixty-one percent over the trade-in vehicles.

The Cash for Clunkers program, also known as CARS, was originally only funded for $1 billion, but after the unexpected consumer response to the program, $2 billion in additional funds was passed by Congress. It is expected that these funds will be essentially depleted by the end of the program. Auto manufacturers and consumers alike have seen the benefits of this program, with Ford Motor Company announcing plans to step up production in response to extremely brisk sales of fuel-efficient cars in the first two weeks of August.

Related posts:

1. Cash for Clunkers: Facts and Figures The CARS program, informally known as “Cash for Clunkers”, ended Monday, August 24th, 2009. Originally...
2. Is Cash for Clunkers Right for You? Do you have an older model vehicle and in the market for a new...
3. Cash for Clunkers $2 Billion Extension Passed After much positioning and worry, Congress has passed legislation that pours another $2 billion dollars...

The ten-day run of the original cash for clunkers program increased much-needed sales for the auto industry, which has been beleaguered by the current economic recession. Of course, skeptics of the program believe that the fix is temporary, and after the funding peters out in September, Labor Day to be exact, car dealers will find themselves in an even larger hole than they were in to begin with.

The major concern for most Americans is where is the money coming from? Once again, the answer to age-old question of how to stimulate the economy rests with the taxpayers. The funding for both the original program and the extension comes from the taxpayers, who have seen more than their fair share of government excess when it comes to stimulus projects. This has been no more apparent than with the bank bail out program. Yet, since the cash for clunkers program is aimed at assisting the taxpayer, is it a bad thing? Probably not for the hundreds of thousands of Americans who were ready to purchase a new car, but for those of us who are already struggling, the impending tax increases to over the cost of all these programs will make it even tougher.

All in all, the cash for clunkers program extension means that more people will have an opportunity to purchase a new vehicle by providing additional cash to drive down the price. If you are in the market, now is a good time to buy.

Related posts:

1. Is Cash for Clunkers Right for You? Do you have an older model vehicle and in the market for a new...
2. Cash for Clunkers Ends Monday The highly successful “Cash for Clunkers” program will end Monday, according to Transportation Secretary Ray...
3. Cash for Clunkers: Facts and Figures The CARS program, informally known as “Cash for Clunkers”, ended Monday, August 24th, 2009. Originally...

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 posts:

1. Cash for Clunkers: Facts and Figures The CARS program, informally known as “Cash for Clunkers”, ended Monday, August 24th, 2009. Originally...
2. Cash for Clunkers Ends Monday The highly successful “Cash for Clunkers” program will end Monday, according to Transportation Secretary Ray...
3. Cash for Clunkers $2 Billion Extension Passed After much positioning and worry, Congress has passed legislation that pours another $2 billion dollars...