Cash for Clunkers: What Cars Qualify?

By The Car Family

http://www.motorists.org/blog/the-best-new-cars-for-2008

THIS PROGRAM ENDS ABOUT AUGUST 24th.

(You might consider taking that new vehicle and trading up to one above the government’s limit if it meets your needs better. )

The Consumer Assistance Recycle and Save Act of 2009, or “Cash for Clunkers,” is a program designed to get gas hogs and heavy polluters off the road and stimulate new car sales. The federal government is going to provide a voucher of up to $4,500 to the dealer to help reduce the cost of the new car by that amount. It even extends to leases.

Unfortunately, the law really isn’t strict enough as you can sell a gas hog that gets 16 mpg and buy a new one that achieves just 18mpg and still get the credit. Makes no sense unless you are selling large SUVs, the bread and butter of the domestic car manufacturers. Hummm.

There are a lot of other problems with the legislation such as how many people driving around vehicles worth under $4,500 qualify for a new car loan. Of course, The Car Family drives a 1980 Mercedes 240 diesel worth under $1000 and could probably qualify. The old car spews smoke, although the engine is still tight after 400,000 or more miles, but its 28 mpg efficiency makes it ineligible. Oh, well. We would have used the money to buy a new Jetta or Mercedes diesel anyway and the government is also providing a stimulus check to buyers of those vehicles as well.

The clunkers program is set to run July 1 through November 1, but the devil is in the details including what dealers are supposed to do with the trade-ins.

Here are the rules and some FAQs:

Eligible vehicles are those that are drivable, made in the last 25 years, insured by the same owner for at least one year leading up to the trade in, have a combined fuel economy rating of no more than 18 mpg according to http://www. fueleconomy.gov and you are buying a car with a sticker of $45,000 or less. You can use the voucher to purchase a new passenger car that achieves at least 22 mpg or model four more miles to the gallon than the old car to get a $3500 credit. If the new car is rated at over 10 mpg more you get the full $4500 is yours. As for pick-up trucks, SUVs, and minivans, the new hauler must have a rating of 18 mpg with the same qualifications as the passenger car to get the $3500 voucher. But, if the new vehicle gets 5 mpg more help yourself to the full $4500. Dah.

We would recommend you do a lot of shopping first and don’t tell the dealer about the voucher because it comes after you make the best deal. You are entitled to all the reductions offered by the dealer and manufacture. What is really nice is that if you do your homework and get a vehicle priced in the $10.000 range, and there are some very good ones from Kia and Nissan, you can have a new car in your possession for $6000. And, don’t bother looking at motorcycles as they don’t qualify and neither do used vehicles. However, the funds can be used for a lease that runs at least five years.

After you find the best price you need to bring into the dealership the car’s title and insurance and registration showing that it has been yours for at least one year.

The program starts July 1, 2009. The best place to find data is

http://www.cashforclunkersfacts.com/CARS-Law.pdf

For a list of all vehicle websites go to http://www.reacheverychild.com/business/index.html