cash for clunkers
Think your old Camry qualifies for the government's Cash for Clunkers program? Think again.

While the Cash for Clunkers bill has generated a lot of interest, the bottom line is that it will benefit fewer buyers than might be expected.

The idea of the Cash for Clunkers program is that buyers who trade in a gas guzzler get a $3,500 or $4,500 voucher from the government that can be used toward the purchase of a new, more fuel-efficient vehicle. In very general terms, the program might be of interest if you:
  • Have a 1985 or newer SUV, minivan, pickup, or gas-guzzling car you’ve been driving for the past year, and it isn’t worth more than about $3,000

  • Want to trade it in to buy or lease a NEW vehicle that’s fairly fuel efficient, and intend to do it before November 1, 2009.
Certain criteria must be met in order to get a voucher, so some people may not qualify, and for others, it may not be practical. Your OLD car has to meet a rather strict list of requirements; the NEW car has to get fairly decent gas mileage. The amount of the voucher depends on the mpg difference between the two. Since any car traded in for a voucher has to be destroyed and the voucher can vary from $3,500 to $4,500, it’s not practical to get a voucher if your old car is worth more than that amount.

Also, the initial plan only applies to the purchase or lease of a NEW vehicle (used ones don’t qualify) that retails for less than $45,000, and only one voucher can be applied to each new vehicle. According to the cars.gov website--which is a good source of up-to-the-minute information--purchases made starting July 1, 2009 are potentially eligible for the program, but the final details aren’t expected to be published until around July 23, 2009. The program is set to expire on November 1, 2009, or when the allocated funds have been exhausted, whichever comes first. While the amount of the voucher is deducted from the sale price of the car at time of purchase, the actual voucher funds go directly to the dealer sometime after the transaction has been completed.  

07.01.2009