Thu 25 Jun 2009
Cash for Clunkers Update (Car Allowance Rebate System)
Posted by Dwayne under Automotive News[5] Comments
About a week ago (6/18/09) we talked about the new “Cash For Clunkers” bill that was passed (see Government Tax Incentives). It seems like there has been a lot of confusion as to what cars will qualify both for the trade in and the car that can be purchased. Reading the act that was linked to in our story gives a good idea on how this may benefit the average consumer helps some, but as expected this leaves a lot of questions.
The “Cash for Clunkers” program was renamed “Car Allowance Rebate System” or “CARS” by the National Highway Traffic Safety Administration after President Obama signed the bill into law. The National Highway Traffic Safety Administration (NHTSA) set up a website Cars.Gov to help inform the car buying public of the new program.
Some of the manufacturers are trying to help out with sections of their site dedicated to helping consumers figure out how this will affect them. One of the first to address this has been Ford. As of today (6/25/09) they will have a new section of their sites dedicated to helping you figure out if you “clunker” qualifies for the program, how much you can get as a credit $3500 or $4500, and what new car qualifies for the deal. You will find this section at www.ford.com
In addition to the vehicles that qualify to be traded in and the ones that can be purchased under the program, there are several limitations including
- A person only qualifies once, you can’t use the offer more than once
- The vehicle must be in drivable condition (no towing it in)
- The vehicle has been continuously insured consistent with the applicable State law and registered to the same owner for a period of not less than 1 year immediately prior to such trade-in
- The vehicle was manufactured in model year 1984 or later
- The vehicle has a combined fuel economy value of 18 miles per gallon or less
The car you chose also has minimum mpg requirements of at least:
- 22 miles per gallon for a passenger automobile
- 8 miles per gallon for a category 1 truck
- 15 miles per gallon for a category 2 truck
Another thought while you are deciding on a new car. According to the act it looks like you can combine different incentives.
Quote “COMBINATION WITH OTHER INCENTIVES PERMITTED- The availability or use of a Federal, State, or local incentive or a State-issued voucher for the purchase or lease of a new fuel efficient automobile shall not limit the value or issuance of a voucher under the Program to any person otherwise eligible to receive such a voucher.”
So it is possible that you would be able to get an incentive for a hybrid vehicle and use this “Cash for Clunkers” credit. For more information check Government Tax Incentives.
As time passes other manufacturers will no doubt start to advertise their line of qualifying cars. In the mean time it’s time to start dreaming of trading in that old clunker for something new!
June 27th, 2009 at 3:11 pm
This is a great time to get rid of your old clunker and get an unbeatable deal on a new more fuel efficient car!
June 27th, 2009 at 9:39 pm
Another resource is the Car Allowance Rebate System site that was set up specifically to handle questions about the program.
June 27th, 2009 at 9:42 pm
Looks like the program will only go on until Nov 1, 2009 or until the amount of money that was set aside runs out.
August 9th, 2009 at 2:02 pm
Cash for clunkers is just another way to do away with the American way of free enterprise. If the cars traded in could be resold it might be alright but to do away with the parts which could be reused or recycled is crazy. The engine is rendered inoperable permanently. The car is crushed and shredded. This takes away from the at home mechanic to have to pay a higher cost for used parts and the new cars which are being sold the parts for them will cost a arm and a leg to replaced because the parts are unfortunatly are made overseas. Plus the car payments will have to be paid, the full coverage insurance still has to be paid, and the taxes will still be due. I am afraid in the next 8 to 12 months we will see the biggest repo that we will see in a long time.
August 10th, 2009 at 9:49 am
@Jackie
It will be interesting to see if your prediction is right. For those who do their homework first this is a great way to get into a new car (if you qualify). Manufacturers are giving some great rebates, match that up with a 4500 credit, that can mean getting a car at a fraction of the price you would normally pay. This also has the additional benefit of keeping some jobs going (see Toyota Plant Closing