If 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 from participating dealers and remove gas guzzlers off the roads.

Has Cash for Clunkers been popular? Apparently so. While the bill has been planned to run until November 1, 2009 or until money runs out, the allotment has almost been spent!

Chrysler dealers have had their inventories reduced due to the program’s popularity. 

Cash for Clunkers Ran Out of Money

Last week, it was reported that the Car Allowance Rebate System, better known as Cash for Clunkers, was running out of the billion dollars allocated to it.

Double check to see if your clunker qualifies for the CARS program.

Wall Street Journal made this report Saturday:

Even Friday, officials weren’t able to calculate how much money remained in the clunkers’ kitty, other than to say that the National Highway Traffic Safety Administration, which handles the rebates, has processed $250 million in vouchers. 

Legislators are Trying to Continue to Fund Cash For Clunkers

I’m looking at the news today and I saw that the House has passed the additional funding and Senate is working on the bill this week.

 George Stephanopoulos, a politcal analyst, made the prediction that the  additional funding bill will pass. If you decide to make a purchase on a new car with the program, the cash for clunkers rebate will be honored through  August, 4. 

Is this Program for You?

We’re personally going to pass on the program for a couple of reasons. First off, we are saving up to buy a home soon so we would not like to divert funds from that goal.

I also looked up our vehicles to see if they qualify as clunkers and as expected, they do not. We have a 1994 Acura Intregra and a 200o VW Jetta and both get decent miles per gallon. 

If you ran the numbers for yourself and were already considering getting a car, then you should definately try to take advantage of the program. Just don’t buy a new car and end up getting a large car loan because of the program.

Your Take

Do you think this program is beneficial in the short or long run? Will you pass on the program or are you taking advantage of it?

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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 76 models that no longer do.

10 of the Newly Cash for Clunkers Qualified Cars

• 1987 Buick Regal
• 1987 Cadillac Brougham
• 1987 Chevrolet Caprice
• 1987 Chevrolet G10/20 Van 2WD
• 1987 Chevrolet R10 Pickup 2WD
• 1987 Chevrolet T10 Blazer 4WD
• 1987 Chevrolet T10 Pickup 4WD
• 1987 GMC G15/25 Vandura 2WD
• 1987 GMC R15 Pickup 2WD
• 1987 GMC T15 Jimmy 4WD

Source: USA Today

See the rest of the list here.

10 of the Newly Cash for Clunkers Ineligible Cars

• 1987 Alfa Romeo GTV
• 1987 Alfa Romeo Milano
• 1987 BMW 5 Series
• 1987 Chevrolet S10 Blazer 2WD
• 1987 Dodge Caravan/Grand Caravan/Ram Van 2WD
• 1987 Dodge Shadow
• 1987 Ford Aerostar Van
• 1987 Ford LTD Crown Victoria
• 1987 Ford LTD Crown Victoria Wagon
• 1987 GMC S15 Jimmy 2WD

Source: USA Today

See the rest of the list here.

Here’s the government’s complete  list to see if your clunker still qualifies. As you remember from the post last week on the Cash for Clunkers and common questions, there are eligibility requirements for your car to be considered a clunker.

You need to check 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

If your clunker was close to the 18 MPG threshold, you may have been affected by the EPA updates. Double check  your car’s mileage numbers with the EPA. Your car may now qualify even though you didn’t before, or it may no longer qualify at all. If you have more questions please check out the government’s website.

There are over 16,000 dealerships participating as of today. Please be aware of any scams that involve your social security number. The Cash for Clunkers/ CAR Allowance Rebate System does not require your social security number. Call to report fraud or a scam at 1-800-424-9071. It’s a toll-free 24-hour hotline.

Photo Credt: jamcp

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The best way to save money is to prepare for emergencies. A couple of years ago, we went down to vist my mom and the tire went out. I had a spare tire to put on, but it was a little flat. We had to drive some miles before we hit a gas station that had an air pump. Now I try to check on the spare tire to make sure it is properly inflated.

Being prepared is usually a very good thing.I decided to include a list of things you might need for your car.

• First aid kit (A good one can be found for $10)
• Flashlight (Wal-Mart has a large one for only $3)
•  Fix-a-flat
• Jumper cables (this has helped me numerous times)
• Rags (old T-shirts, etc.)
•  Road flares

If I forgotten something, please add it with a comment.