Posts Tagged ‘cash for clunkers program’
What You Need To Know About The Car Allowance Rebate System
The Car Allowance Rebate System or better known as the “Cash For Clunkers” program, is now picking up steam with dealerships heavily pushing the program and consumers showing more interest in the program. There are many requirements to be qualify for the program, because it is designed to help take less fuel efficient cars off the road and put drivers into safer, greener cars.
Here is some important information from the cars.gov website:
- 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
- Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
- The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.
The maximum amount you can receive for the trade-in is $4,500, and I am not certain that the government has specified how the $4,500 trade is determined. I think they are leaving this up to the dealership’s discretion. Since the dealership gets reimbursed by the government, and they want to push new inventory out the door, it’s safe to assume they will be generous with the trade value. I have already seen some dealerships offering to match the trade-in value from the CARS program to sweeten the pot.
Buyer beware of scams and bad marketing tactics
There will be a lot of people out there that try to exploit this program, so beware of any scams or unscrupulous marketing tactics by car dealerships. Use common sense. If the deal sounds too good to be true, it probably is too good to be true. Don’t sign over the title to the clunker without a bill of sale. The bill of sale is your only proof that the title is being transferred to another name. Make sure everything is in writing, and do your homework before you do a deal. When it comes to large dealerships, make sure you read the fine print. Large dealerships love to lure customers in with a catchy marketing tactic, but there is usually a catch to the deal. Be smart, ask questions, and don’t be scared to walk away from a deal.
If you do have an old car that you’ve been looking to get rid of and upgrade to a new car, this could be a great opportunity to save a lot of money and help save the environment!