The Cash for Clunkers legislation has passed and has received President Obama's signature. Here is a summary of the facts you need to know about the "CARS" Cash Allowance Rebate System:
1. What's a Clunker? A driveable vehicle 1984 or newer, with a fuel economy rating of no more than 18 mpg. To find out the offical mileage on your clunker, visit http://fueleconomy.gov the offical site for fuel mileage calculations.
2. Here's how CARS works: you trade in your older vehicle for cash towards the purchase of a brand new, more fuel efficient one. The better the mileage of the new vehicle, the more money you'll get towards its purchase - either $3,500 or $4,500. The minimum combined fuel economy of a new vehicle purchased under the program must be at least 22 mpg, while new small trucks and SUV's have to get at least 18 mpg, and large trucks have to get at least 15 mpg. The old cars must be salvaged once you trade it in.
3. No such luck , car "flippers:" the program is off-limits to buy an old vehicle and "flip" it - the vehicle must have been insured and registered by the same owner continuously for at least one year before the trade.
4. The environmental idea behind the bill is that it takes old inefficient vehicles off the road. As with any bill, there is controversy from all sides surrounding the bill. Simply Google "Cash for Clunkers" and puruse the over 2,000,000 recent entries.
5. Consumers should act fast. The bill provides vouchers for one million purchases, and the window of time is only from July 1 through October 31, 2009 (whichever occurs first). The bill will be revisited in the fourth quarter of 2009, but changes may be made at that time.
6. You don't need a voucer; dealers will apply a credit at the time of your purchase.
7. The vehicle you are trading in is required to be destroyed. Therefore, the value you negotiate with the dealer for your trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to you and estimate the scrap value of your vehicle.
For more information regarding the program, visit the official website at http://cars.gov, or call us toll free at 1-888-559-4277. We will be happy to give you a complimentary assessment on your trade in vehicle as to whether or not it qualifies for the program and how much money you can expect to receive.
