Friday, July 24, 2009
Cash For Clunkers: Know the Details Before Buying
If your old gas guzzler is begging to be replaced by a more fuel-friendly model, now may be the time to act. From July 1--Nov. 1, 2009, the government-funded "Cash for Clunkers" program makes available $1 billion in vouchers for consumers trading in old cars for new, more fuel-efficient models. The program will provide each buyer with up to a $4,500 voucher, the value depending on the mileage improvement of the new vehicle.
The vouchers only apply to new vehicles priced at $45,000 or less. Also, consumers cannot receive both the voucher and the trade-in value of the vehicle--you should take the higher of the two. Note: You can combine the voucher with other dealer discounts and rebates.
The basic guidelines, from cars.gov, the program's official government Web site, specify that all trade-in vehicles must: have been manufactured less than 25 years ago; have a combined city/highway fuel economy of 18 mpg or less (except work trucks); be in drivable condition; and have been insured and registered to the current owner for the full year before trade-in.