Get ready for a new government stimulus program – this one designed to help the environment and the auto industry.
Affectionately known as “Cash For Clunkers“, or ” Car Allowance Rebate System/CARS”, it lets you trade in your old car or truck for a voucher good towards the purchase (or lease) of a new vehicle that gets better mileage. The better the mileage of the new car, the more money you get.
You need to act quickly because program expires in November, and it has multi-layered restrictions on which vehicles qualify. If your vehicle is worth more than the cash you get, it doesn’t make sense to do the program, since you won’t get trade-in or resale value .
How the Cash For Clunkers – Car Allowance Rebate System/CARS Program Works
The aim of the program is to get older less fuel efficient vehicles off of the road. You trade in your old car or truck for a voucher towards the purchase (or lease) of a new vehicle that gets better mileage. The better the mileage of the new car, the more money you’ll get towards the purchase of a new vehicle.
You get either a $3,500 or a $4,500 voucher, depending upon the increase in mileage per gallon in old car to new car. To find out the MPG of your old car vs. a new car, check out this website.
- The minimum combined fuel economy of a new car purchased under the program must be at least 22 mpg.
- Small trucks and SUVs have to get at least 18 mpg.
- Large trucks have to get 15 mpg.
- The old cars will be salvaged once they’re turned in.
Which cars qualify for the Cash For Clunkers – Car Allowance Rebate System/CARS Program?
Here are the criteria we know so far:
- Must be in drivable condition.
- Have been continuously insured to the same owner for at least one year immediately prior to trade-in.
- Model year 1984 or later.
- Must suck gas – fuel economy of 18 mpg or less.
How to Participate In the Cash For Clunkers – Car Allowance Rebate System/CARS Program
To participate in the program you just have to buy a new car from a participating new car dealership. The incentive amount that you qualify for will be applied to the new vehicle’s purchase price. You won’t receive an actual check or voucher. The program will run from July 1, 2009 to November 1, 2009.
Ford is already gearing up with their “Recycle Your Ride” program which features a calculator at www.Ford.com to help consumers figure out how much the government would give them to trade in for a new Ford vehicle. The calculator also can figure the fuel economy of one’s current vehicle and determine the amount of voucher funds that can be applied toward qualifying Ford, Lincoln or Mercury cars and trucks. Ford claims to have 20 vehicles across its Ford, Lincoln and Mercury lineup that meet trade-in requirements for CARS.
Make sure you check out the other tax breaks available to you from prior Obama administration economic stimulus actions.
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{ 2 comments… read them below or add one }
Beware of Ford Motor Company and their “green” claims. “Cash for Clunkers” is a great PR scheme and a way to sell more cars. Don’t be fooled: Ford doesn’t care about the environment in my community.
Ford is partnering with a known polluter, Pan Am Railways, which has repeatedly spilled oil and diesel, not reported it, under-reported it, failed to clean it up, and refused to take preventative measures.
Ford Motor Company is supporting Pan Am Railways in building a 25-acre parking lot to unload Ford vehicles over a critical aquifer that supplies drinking water to 15,000 people.
A perfectly good lot is one-quarter mile away and Ford is passively choosing to support Pan Am Railways in paving our aquifer.<
Cash for Clunkers is really desinged to promote car sales over a very short period of time. A more long term way to increase car sales is to allow people who donate car to charity to claim the book value as their tax dedcution. Most donated cars are recycled. Those that aren’t have to pass inspection before they are sold or given to the public.