Cash for Clunkers

Have you heard about this new program? Some call it "Cash for Clunkers" -- others stick with the more formal moniker: the Car Allowance Rebate System (CARS). If you own a care that has an 18 or fewer combined miles per gallon fuel rating, you may qualify for this rebate program. If the thought of driving around in your gas guzzler this summer has you less than thrilled, and you're thinking about a new car purchase... you need to know a few things about how this works:

-Your vehicle must be less than 25 years old on the trade-in date
-Only purchase or lease of new vehicles qualify
-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
-You don't need a voucher, dealers will apply a credit at purchase

Most of the info I've read says to shop in late July to early August -- just be sure your dealer is up on all of the details before you sign on the bottom line. Depending on what you buy (and if your vehicle qualifies) you could save between $3500-$4500.

The program is being administered by the National Highway Traffic Safety Administration (NHTSA) and they are coordinating with car dealers on how to make the program work. Keep in mind, purchases need to be made from the program start to November 1, 2009. From what I have found -- the start date is a little loose because of program start-up issues, but well worth waiting for. The best place to find info on how the program works, or if your old car even qualifies? The government's official website: http://cars.gov. Don't let non-government websites ask you for personal information (some of those bad-boys have already popped up). You can get all you need on the dot gov site.

Happy car shopping,

-reenie

Editor's Note, July 31, 2009 - Just heard on the radio that the program has run out of money just one week in. Sounds like Congress is trying to find more money to inject into the program. I'll keep my ears/eyes open and post new info once I have the details confirmed.