Cash for clunkers program goes live this week
July 28, 2009 by admin
This week the government finally kicked off their Cash for Clunkers program, aimed at helping to improve fuel efficiency and provide a sales boost to auto manufactures. The new “CARS†program will be a great avenue for consumers who have been in the market for a new vehicle purchase or individuals who may have been hesitant to purchase a new car amid the economic challenges. The CARS program is designed to offer rebates/vouchers ranging from $3,500 to $4,500 when you trade-in a vehicle and purchase a new one that meets or exceeds higher MPG standards
The voucher is applied on eligible trade-in new vehicle. The government will allow the voucher to be redeemed at participating dealers who have to meet the requirements set forth by the National Highway Traffic and Safety Administration (or NHTSA). As a consumer you do not need to sign up or enroll with a specific dealer and can shop almost all large auto manufacturers for both domestic and foreign car purchases (General Motors, Ford, Chrysler, Toyota, Honda, etc). The voucher transaction is conducted between the dealer and the NHTSA (National Highway Safety Transportation Association)
To be eligible for the program, you must trade-in a vehicle that meets the following criteria:
• The vehicle will have needed to been manufactured less than twenty five years before the date you trade it in
• Must have a combined fuel economy of 18 miles per gallon or less for both city and highway driving
• Must be in drivable condition and (running)
• Must have been continuously insured, registered and driven by the same owner for the full year prior to the trade in
General Motors website covering the CARS program, provides some great insight into how the process should look when you are trading in a vehicle and looking to purchase a new vehicle, here are the key points according to GM’s site:
• Bring the title, registration and insurance papers showing continuous registration and insurance coverage for the past full year.
• When you buy a new vehicle, the dealer handles the submission of all required information to NHTSA.
• NHTSA ensures that your purchase meets the requirements.
• About 10 days later, NHTSA will issue a financial credit to the dealer—assuming all program requirements have been met.
• That credit will be applied to the purchase price of your vehicle.
In synopsis, if you are looking to purchase a new vehicle and use the CARS rebate you should plan for the transaction to take between one and two weeks for all of the necessary paperwork. The good news, is that this extra administrative time may allow you to research financing options more thoroughly to ensure that the auto loan (where applicable) you are looking to obtain has the best rate and terms for you’re your individual situation.
You can utilize these resources for additional information on this program:
Government cars program here
Verify the fuel effeciency of the vehicle you are considering at the Governments EPA site here
GM rebate here
Ford rebate here
Totota rebate here
Honda rebate here
Comments
One Response to “Cash for clunkers program goes live this week”
As with most government programs, the success of the “cash for clunkers” program is not measured in how well the consequences of the program align with the stated goals of its advocates. Nor is it measured by any economic impacts the consequences might cause. Instead, just like the example of the public library in George Dance’s recent article about Booze and books, the success is measured by participation or usage, not by any measure of the value provides or harm it does to our economy. The trick is to define the program specifically so that it has a known demand so the usage is high. Media spin and politics will make sure the right people hear the program was successful and beneficial. I heard a bit on NPR just today about the downstream benefits that recycling all these old cars has. Ridiculous of course, but the perception amongst the voters is far more important than the actual results and consequences. Certainly there will be follow-on programs, cash for major appliances, cash for tools, etc.