What’s the deal with the Cash for Clunkers Program? Within four days of starting, the program’s $1 billion dollar funding is already depleted. Then the next day, the house quickly rushed together another bill to add an additional $2 billion funding to be voted on this week. Since many of you emailed me asking about it, here’s what I gathered.
Cash for Clunkers Suspended
The Cash for Clunkers program approved 40,000 rebate submissions within a few days of opening and there is already concerns that the $1 billion funding is gone because there are still 200,000 applications pending. If the numbers are true, it will definitely give the car industry a much needed boost.
The Program Isn’t In Danger
If you are still thinking about whether getting a new car is worth it, don’t worry because the senate is putting together a bill to allocate another $2 billion into this program. Although it hasn’t been passed yet, I’m pretty sure there won’t be much of a problem because the house showed tremendous support by putting together the bill within one day of hearing about the danger of this program ending early.
Resources for Cash for Clunkers
There are tons of resources for the cars, but the more trustworthy ones are:
Cars.gov – The government official site for the cash for clunkers program. This site provides more information, as well as how the program works in more detail.
Edmunds.com – The biggest car resource site actually have a bunch of features related to the the program. Here are a few that you can use.
Click Here to Go to Edmunds.com for More Information
So What is Cash for Clunkers Anyway?
The initiative is basically the administration’s effect to spur new car purchases. Without being long winded about it, here are some bullet points of some frequently asked questions.
- The purchase must be brand new and cost less than $45,000
- A car made in 1984 or later that gets 18 miles per gallon (MPG) or less qualifies for a a rebate if you buy a new car.
- The car must be registered and insured during the past 12 months, and the engine must start. Vehicles registered in New Hampshire and Wisconsin do not have the insurance requirement.
- The new car that is being purchased must get four or more MPG. Meet that and you get a $3,500 rebate. Up the difference to ten miles per gallon and you get $4,500.
- Trade in a SUV, minivan or small pickup and your new vehicle only needs to have an improved gas mileage by 2-5 MPG.
- Your Social Security Number is NOT required to receive the rebate.
- The rebate will be given at time of purchase. There is no need to wait (for the consumer at least), but it is still important to negotiate a good price for the new car.
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{ 2 comments… read them below or add one }
The program is pretty confusing to say the least. I went to the dealership and the dealer wanted me to sign this form that says I have to pay for the rebate if the government didn’t give the dealer money. The kicker is that it didn’t even have an expiry date so that meant we could get a bill 12 months done the road for like $4,500. And by then, we wouldn’t even get our WORKING car back.
I walked out as soon as I read it. No thank you.
One of the most aggravating things to me – a dismantler receiving the clunkers – is that these still running cars are being sent straight to the scrap metal heap! There is no way around it – the cars HAVE to be scrapped – that’s the whole purpose of this bill, plus getting the car makers some new sales.
It seems a terrible waste that working cars are being scrapped. They cannot be donated to charity, they cannot be fixed up by charities and sold/given to those needing a cheaper running car, they cannot be bought for ‘beaters’, they cannot be bought for a young kid’s first car and fixed up, they cannot continue to run til they drop.
It seems a terrible waste of a running car, a terrible waste of resources, and not GREEN at all, which is what this bill states it is for – a greener world thru better gas mileage, but how can it be Green if it is sooooo wasteful???