Cash for Clunkers

Want to get cash for clunkers?

Last Thursday, the U.S. Congress approved a “Cash for Clunkers” program aimed at encouraging people to trade in their old model vehicles for a more fuel-efficient ride.  If you qualify, government incentives from $3,500-$4,500 may be provided to you when you trade in your gas guzzler for a vehicle with improved gas mileage (miles per gallon, or mpg).

Three big benefits of the new legislation are obvious:

1.  More people should will be able to afford cars that use less gas (win-win for both consumer and environment)

2.  Its the ultimate in recycling!

3.  Car dealers and automakers will enjoy a surge of new buyers… badly needed in the current economic climate.

The sponsor of the proposal, Senator Debbie Stabenow (D-Mich), stated:

“This is an emergency for families and small businesses – for an industry that has been the backbone of our economy for a generation.”

The Cash for Clunkers bill still must be signed by President Obama before it becomes law; we expect that it will be approved.  The program is an additional $1 billion in federal spending by the Obama administration, and has been criticized by some as either needless spending, or not going far enough!

Nonetheless, if you’re interested in taking advantage of the program, Cash for Clunkers authorizes spending under the bill from July through November 2009.  As early as August, consumers may be able to… “cash in.”

Before you head down the road toward a new vehicle, consider the requirements for qualifying under the Cash for Clunkers program:

• Car owners must trade in one that gets 18 mpg or less for a new one that gets at least 22 mpg
• SUV/pickup/minivan owners must trade in a vehicle that gets 18 mpg for a new one that gets at least 2 mpg more than their old one
• Your vehicle must be a 1984 model or newer, in drivable condition
• You must have continually owned and insured your vehicle in the 12 months prior to your trade-in
• The new vehicle must have a MSRP of $45,000 or less
• In order to qualify for a $4,500 voucher, instead of just $3,500, car owners must trade up to a new car with 10 mpg improvement; SUV/pickup/minivan owners must trade up to a new one with at least 5 mpg improvement
• Participating car dealers will be able to access the government vouchers electronically
• Dealers must ensure that older vehicles are crushed and disposed of to get the gas guzzlers off the roads

Unsure as to whether your make/model qualifies, and the amount of government incentive to which you may be entitled?  Check out www.fueleconomy.gov.

Will the program help U.S. automakers dig out?  Should we soon be seeing more fuel-efficient vehicles on the road?  I guess the answers lie in part with American consumers.

What do you think?