Cash For Clunkers
Cash For Clunkers
Fortunately, the government has created a program, which could benefit some of us folks who feel as though our paycheck is getting poured directly into our gas tank: It’s called the Cash Allowance Rebate System (CARS) program or, “Cash for Clunkers,” as it is more affectionately known. No, it’s not a $300 billion dollar stimulus to overhaul your household finances (although, that would be nice), but the program may help out quite a few people wanting to ditch their gas guzzling junker for a more fuel efficient new vehicle.
The goal of CARS is exactly what you think: an attempt to reduce gas consumption, while simultaneously boosting sales for our struggling auto manufacturers. The program works by giving qualifying consumers a $3500 or $4500 voucher toward the purchase of a more fuel efficient vehicle. To keep in line with its goal, though, the program has some fairly strict conditions to be met by both your new purchase and old trade-in. Here is a quick rundown of both categories to help you determine if can take advantage of this offer:
- Must be in working condition and less than 25 years old.
- Needs to have been registered and insured under the same owner for at least one year prior to the trade in date.
- Combined fuel efficiency for city/highway driving must be less than 18 miles per gallon (according to when the vehicle was brand new).
- The sticker price can not exceed $45,000.
- The vehicle must be previously unowned, a.k.a. new.
- Must meet the minimum combined fuel economy level:
- 22 mpg for passenger autos
- 18 mpg for class 1 trucks (under 6000 pounds)
- 15 mpg for class 2 trucks (6001-10,000 pounds)
To Determine if a vehicle you have your eye on will qualify, you may find its fuel economy information at http://www.fueleconomy.gov/cars
Those of you still saying you can’t afford to cash in your clunker, you should look at big picture: it will mean less money you have to spend on gas, $4500 voucher which amounts to a smaller monthly payment, and, furthermore your old bag o’ bolts may not have many years left in it anyway. There are some who can’t afford not to buy a new car right now.
For more information about this program visit the CARS website at http://www.cars.gov/