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Cash For Clunkers Bill

Posted by on Jul. 28, 2009 at 7:52 PM
  • 3 Replies

The Cash for Clunkers Bill (aka. Gas Guzzler Rebate) entitles you to a $3,500 or $4,500 credit for trading a drivable car made within the last 25 years, with a combined city/highway fuel economy rating of 18 mpg or less to a new higher fuel efficiency car. If the mileage improvement is 4 mpg or better, you’ll get $3,500. If your improvement is 10 mpg or better, you’ll get $4,500.
clunker
Photo by mzacha from stock.xchng

How does the Gas Guzzler Rebate work?

You don’t have to do much to get the credit. Participating car dealers will apply a credit and reduce the price you pay at the time of your purchase or lease, assuming the vehicle you buy or lease and the vehicle you trade in meet the program requirements. The dealer will then obtain reimbursement from the government.

How will Cash for Clunkers Bill help our economy?

There are two primary benefits of this bill. First, it helps stimulate the auto industry by helping them sell 1 million new cars. Second, it helps the environment by removing inefficient cars with more fuel efficient ones.

What the oppositions are saying about the Bill?

Some people do not support this bill citing the following reasons:

  1. It prematurely remove cars that are still functional from the road, and the pollution created during the process of manufacturing 1 million new cars may outweigh the benefit of removing 1 million inefficient cars.
  2. Cash for clunkers will hurt car donations to charity because the amount of the voucher is so much greater than the tax deduction.

Additionally, I’ve dealt with many car dealers before and I am not sure it’s a good idea to place our bet on their honesty. I am sure it will be harder to negotiate a good price for your car once the Clunkers Bill goes into effect. The best bet is to not even mention that you have a clunker to trade in until you finish the negotiation.

What to do next?

If you want to take advantage of the program, you have to act fast because there are only 1 million vouchers available. To learn more about the program, check out the official Car Allowance Rebate System site at CARS.gov (you got to love the acronym)! To check if your car meets the fuel mileage requirement, visit the FuelEconomy.gov site.

by on Jul. 28, 2009 at 7:52 PM
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Replies (1-3):
tericared
by on Jul. 28, 2009 at 10:04 PM

this would be great if people like me with older cars [trucks] actually had money for a car payment that would come about after trading in our older clunkers.. 

bluewolf
by Member on Jul. 28, 2009 at 10:24 PM

exactly my family is barely making it as is we cant afford another payment i will support it only when the govt decides to buy me a newer car lol which i dont see that happening

Hot_Mama89301
by Member on Jul. 29, 2009 at 1:55 PM

I agree, my car is okay on gas  but getting high up there in the milage. BUT the good thing about it, it IS payed off. Like everyone else i def. can not afford another payment.

So when are they going to start giving away cars? lol



 

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