Subscribe
What is RSS?
Post a CommentPresident Obama recently signed into law the Car Allowance Rebate System, also known as Cash for Clunkers. The program is designed to stimulate car purchases from participating dealers and remove gas guzzlers off the roads.
If you have any more questions, the government has created a website to help you. I included some of the frequently asked questions many readers would ask about the program.
Double check to see if your clunker qualifies for the CARS program.
When Does Car Allowance Rebate System Start?
The Cash For Clunkers program started July 1st and will continue until November 1st 2009, or whenever funds are used up, whichever happens first. Eligible cars can be traded in for a voucher redeemable toward the purchase of a new, more fuel efficient vehicle. Vouchers are worth either $3,500 or $4,500, depending on several factors, including the difference in fuel efficiency between the old and new vehicles.
Would My Car Would Be Eligible?
There are specific requirements for trading in your ‘clunker’. You need to ceck to make sure your car meets the guidelines.
- Your vehicle must be less than 25 years old on the trade-in date
- Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
- Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
How Can I Determine The Fuel Economy Of My Trade In Vehicle?
The CARS Act requires that NHTSA set up the program website by July 24, 2009 to assist consumers to see if their cars are eligible. Right now, though, you can check out its fuel economy on this site to see your car’s mileage.
The CARS program applies to new car purchases.
Which Vehicles Qualify for the Cash for Clunkers Program?
The Car Allowance Rebate System applies to new vehicles only. So buying a used cars does fall under the program. Some other things to keep in mind:
The new vehicle must have a manufacturer’s suggested retail price of not more than $45,000. That price appears on the window sticker on new vehicles. The new vehicle must also achieve minimum combined fuel economy levels. For passenger automobiles, the new vehicle must have a combined fuel economy value of at least 22 miles per gallon.
Source: Cars.gov
Can I use the credit in combination with manufacturer rebates or discounts?
Yes! The CARS program credit can be used in addition to any rebates or discounts offered by the dealership.
Can I combine this credit with other government incentives?
Yes. You can combine this with other State and Federal incentives, like the hybrid vehicle credit.
If you have more questions please check out the government’s website.
Your Thoughts
Will you be taking the advantage of the Cash for Clunkers Program?
Photo Credit: Auto Exposure Canada
Related Posts -
Check to See if Your Car is Still a Clunker I was watching Good Morning America today and noticed something interesting mentioned. Last week the EPA changed the ratings on a hundred models or so of cars, some with higher mileage reported and some with lower mileage. They added 86 models to the list that can now qualify and updated...... - Personal Finance Interview with One Money Design This week I wanted to share with you an interview with a relatively new blogger. Jason was kind enough to answers some of my questions on personal finances, goals, and blogging. Please subscribe to One Money Design and chat with Jason on Twitter. Could you tell us a little about......
Here are Some Other Great Thoughts -
Hybrid Electric Car Auto Insurance This post is a guest blog written by Travis Overby. With skyrocketing gas prices and the increasing concerns about the impact of carbon emissions on the environment, Hybrid Electric Cars have been growing in popularity. A hybrid electric vehicle combines a fuel-efficient gas engine with an electric motor. The purpose...... - Vehicle Tax Deductions For 2009 Tax Year. Thinking of buying a new car in 2009 to get the tax benefits? Better act fast - you only have 60 or so days left before 2010! Because of the American Recovery and Reinvestment Act of 2009, any new car, light truck, recreational vehicle or motorcycle purchased between February 17......
I will certainly not be taking advantage of the program. I think it is ridiculous not to include used cars in the program. Plus, I heard that the dealers who participate have to report the voucher given to the customer as taxable income. That’s insane.
I think this may be a good deal for those already in the market for a car and the price before the voucher is comparable to a used car (some, but not all, dealerships in my area have offered deals where a 2009 is almost as cheap as a 2007).
We,though, aren’t in the market for buying car. We’re saving up for a town home in the area.
By the way, I checked the government site and the voucher will not be considered taxable income for the consumer:
“The CARS Act expressly provides that the credit is not income for the consumer. However, the credit will be considered as income for the dealer.”
My wife had leased a car before we married, and that’s the car we drive now. The lease is up next year, so while the cash for clunkers program doesn’t apply to us, we are beginning to consider our options for next year. I’m not a big fan of leasing a car for $300/mo when we could save up and buy something used that gets us around. We both work from home, so we don’t do a lot of necessary driving anyway.
[...] Cash For Clunkers: Car Allowance Rebate System Questions and Answers [...]
[...] Panda from Green Panda Treehouse presents Cash For Clunkers: Questions and Answers, and says, “President Obama recently signed into law the Car Allowance Rebate System, also [...]
[...] complete list to see if your clunker still qualifies. As you remember from the post last week on the Cash for Clunker and common questions, they are eligibility requirements for your car to be considered a [...]
What if you have a car that qualifies but whos trade in value is around 7,000? does the 4,500 get added to that to give you 11,500?
[...] you’ve been watching the news, you may have been confused about what is happening with the Car Allowance Rebate System. What is the Cash for Clunkers program about? The program is designed to stimulate car purchases [...]
[...] the Cash for Clunkers program and the First Time Homebuyers Tax Credit all over the news, you might be tempted to jump on [...]
I bought a car through the cars program on july 31. I still have not recieved the car. the dealer said they are holding it untill they get the money from the government. I am now tihout a car and have to find ways to work everyday. I was told I could report the dealer but dont know if this is the best thing to do. Does anyone have advice or knows how to resolve this issue.
Does the dealer get paid money for the rebate amount or does the consumer get a voucher for the amount? My understanding is that no dealers have received any payment as of this date. When will payments be made, how and to whom?
I would call 866- CAR-7891 and report the dealership.
The dealer is responsible for colecting the rebate. All you are suposed to do is go buy a car.
Yeah, I reported them on Friday and haven’t heard anything back yet. Do you know anyone who has reported a dealer? If so what was the outcome?
Have you tried contacting the Consumerist? They usually have some connections to help.
how do I contact the consumerist and what are they able to do?
[...] you’re still on the fence about using the Cash for Clunkers program, you better decide fast. Transportation Secretary Ray LaHood has announced that the CARS [...]
[...] Cash For Clunkers: Car Allowance Rebate System Questions and Answers [...]