Cash for Clunkers

I wanted to pass along some information on the Cash for Clunkers program.

As you may have heard, this is a government-funded program with the primary goal of removing vehicles with low fuel-efficiency from the road. If a customer’s vehicle is eligible, they can receive either $3,500 or $4,500 for their trade-in (depending on several factors) and apply it to the purchase of a new and more fuel-efficient vehicle. (Please note that this program applies only toward the purchase of new vehicles).

Here are some general facts about the program (taken from cars.gov):

· The trade-in vehicle must be less than 25 years old on the trade-in date
· Only purchase or lease of new vehicles qualify (lease term must be over five years)
· 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
· Customers don't need a voucher, dealers will apply a credit at purchase
· Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
· The vehicle that the customer is trading in is required to be destroyed. Therefore, the value the customer negotiates with the dealer for the trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to the customer and estimate of the scrap value of the customer’s trade-in vehicle.

Dealers will need to register with the government before being able to participate in the program. Though registration is not yet open, they will soon be able to register through the cars.gov site. However, dealers are now able to begin collecting customer information for interested candidates.

Again, for much more information, please go to http://cars.gov.