Are you driving around in an old gas guzzler worth less than $4,500? Would you like to trade it in for a nice, fuel-efficient new car? Well, then, guess what - the government has just made it a lot easier with the new Cash for Clunkers program!
In an attempt to spark new car sales and get old clunkers off the road, President Obama initially signed the $1 billion Consumer Assistance to Recycle and Save (CARS) Act of 2009, also known as the Car Allowance Rebate System program or "Cash for Clunkers." The Cash for Clunkers bill provides either a $3,500 or $4,500 instant-credit to those who trade in their present gas guzzler for a new, more fuel-efficient car.
The widely popular and successful Cash for Clunkers program is now closed. The Department of Transportation shut down Cash for Clunkers on Monday, August 24, 2009 at 8 p.m. EDT due to exhausted funds. This is a great deal for you if you're interested in saving money on the purchase of a new car and saving money at the pump, while decreasing your carbon footprint. A similar trade-in program has worked in Europe and the United States government sees this as an opportunity to stimulate new car sales, while reducing our dependence on foreign oil. This is a win-win situation for consumers, car manufacturers, the economy and the environment.
To qualify for a Cash for Clunkers credit, you must meet the following conditions: - Your old vehicle must be insured and registered in your name for at least one year immediately prior to trade-in.
- Your old vehicle must be in drivable condition. When they say "clunker" they don't mean a scrap of metal overgrown by nature.
- Your old vehicle must be less than 25 years old on the trade-in date. No Model-T's please.
- The new vehicle that you buy must cost less than $45,000.
See below for specific details for the 4 eligible vehicle categories: Passenger Cars: This includes cars, station wagons, convertibles — well, you get the picture. To receive a voucher for a new car, you must meet the following criteria:
- Old car: 18 mpg or less.
- New car: at least 22 mpg.
- $3,500 voucher: 4-9 mpg improvement between old and new car.
- $4,500 voucher: minimum 10 mpg improvement between old and new car.
Light-Duty Trucks: The light-duty truck category in the Cash for Clunkers program includes all SUVs, as well as pickups and vans weighing less than 8,500 pounds, with a wheelbase 115 inches or less for trucks or a wheelbase of 124 inches or less for vans. To receive a voucher for a light-duty truck trade in, you must meet the following criteria:
- Old vehicle: 18 mpg or less.
- New vehicle: at least 18 mpg.
- $3,500 voucher: 2-4 mpg improvement between old and new vehicle.
- $4,500 voucher: minimum 5 mpg improvement between old and new vehicle.
Large Light-Duty Trucks: A large light-duty truck is a truck/van that weighs between 6,000 and 8,500 pounds with a wheelbase of greater than 115 inches for trucks or greater than 124 inches for vans.
- Old vehicle:18 mpg or less.
- New vehicle: at least 15 mpg.
- $3,500 voucher: 1 mpg improvement between old and new vehicle.
- $4,500 voucher: minimum 2 mpg improvement between old and new vehicle.
Work Trucks: Work trucks weigh between 8,500 and 10,000 pounds.
- Old vehicle: no mpg requirements, but must be 2001 model or older.
- New vehicle: no mpg requirements, but must be similar in size or smaller than trade-in.
- $3,500 voucher: no mpg requirements, since it's assumed that newer trucks will be more fuel efficient than model year 2001 and older trucks.
- $4,500 voucher: not available.
Search through our
Car Chooser to find the right truck for you!
Other Facts About the Cash For Clunkers Program: Q: In addition to the credit, will I be able to get real trade in value for my vehicle? A: No. Cash for Clunkers is a trade-in program and the credit is locked-in, meaning that if your car is worth more than $4,500, then it's better to trade it in for its full value. However, if your junky old clunker is worth only $500, this program is perfect for you!
Q: Can I combine the credit with other rebates and incentives? A: Absolutely. The credit is basically a rebate from the government, while normal rebates and incentives are offered by the car manufacturer.
NewCars.com has an up-to-date
Rebate Center with all of the available rebates and incentives based on your location. Adding the voucher to a rebate or low interest financing can save you tons of money. A $4,500 voucher plus a $2,000 rebate equals a $6,500 down payment.
Q: Where do I get the trade-in credit? A: The dealer will apply the credit at the point of purchase.
Q: Where can I find my current vehicle's mpg? A: You can find your current vehicle's combined mpg at
fueleconomy.gov.
Q: What does EPA combined mpg mean? A: The EPA has two mpg ratings based on its standardized testing: Estimated Highway and Estimated City mpg. The EPA multiplies the Estimated Highway mpg by 45% and City mpg by 55% to give the "EPA combined" figure.
Q: Does the Cash for Clunkers program apply to leasing a new car as well as purchasing one? A: You can use the voucher for a lease of five years or longer.
Q: How will the Cash for Clunkers program affect the environment? A: Well, it's hard to say, but it is a fact that older cars, especially the clunkers tend to pollute more per mile than newer cars. One recent study found that cars 13 years or older produce 75 percent of all car pollution. Therefore, the Cash for Clunkers program will likely reduce emissions that harm our environment.
Q: Can I buy any car I want as long as it receives the requisite mpg's? A: No. Any vehicle purchased using the credit must have an MSRP of $45,000 or less.
Q: What about the new car tax incentive plan the government is offering? Does that apply to the Cash for Clunkers program? A: Yes it does. Since you are purchasing a new car under $49,500, you are eligible to have the state sales tax deducted from your taxable income. To find out more about the new car tax incentive program,
click here.
Q: If I have two clunkers, can I trade them both in and get two credits?
A: No. The program is limited to one credit per person.
Q: What happens to my car after I trade it in? A: Your car goes from the dealer to the junkyard. Some parts are salvaged but the rest is smashed.
Q: Can I go to any dealership to trade in my car and receive a credit? A: No, dealers will have to register to participate in the program, so be sure to contact the dealership before you pay them a visit.
Participating in the Cash for Clunkers program is easy and is a great opportunity to save money and the environment.
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