As currently planned the program is limited to 3 months, $1 Billion and about 225,000 trade ins. However the original plan was for 12 months, $4 Billion and about 1 million trade ins. Don't be surprised if the plan is extended by 3 months, then extended again and then extended again and then....it depends on how much demand there is from the buying public.
And you are surprised why? Medicaid rewards people who don't pay for health insurance. Student grant programs rewards people who don't save for their kids college education. Get over your head in debt and Uncle Sam has laws to bail you out... Banks, Wall Street , Auto Industry... The list goes on and on. Our government constantly bails out those do the wrong thing and penalizes those who do the right thing... Sorry, but this one seems small by comparison...
A 1990 Chrysler LeBaron does not qualify as a clunker because it exceeds the MPG cut-off. (Even the V6 auto is rated at 19 mpg combined) Nor would a 1990 Lumina, Taurus, or New Yorker. As I have pointed out previously, VERY few cars manufactured after 1990 qualify for this program as most exceed the MPG cut-off. (For example the only Chevy cars that qualify are the Caprice V8, Camaro V8, and Corvette. (The only Toyota that qualifies is the Supra Turbo) This bill is targeted at pre-fuel-injection cars and pre-2000 light trucks
Yes, but my 2001 Ford Explorer Sport Trac qualifies...where is the problem?? ;-) jk I actually agree with you. It's a stupid law. Big shock considering the people who wrote it/voted for it/signed it. But I'm going to take full advantage of it and let everyone know that I was able to take their tax dollars for my new car that I was planning to by even before this program.
That great. Good choice. And as an added benefit to the nation your fuel-gulping SportTrac will be taken out of commission.. There's a silver lining in every cloud. Thank you for your decision. For my part even though I can't participate I consider this good for the nation as a whole.
If you think is it a stupid law then you don't agree with me. I actually think it is a pretty good law. I also realize that this is a stimulus bill that is intended to get people to buy cars and any environment benefits are a bonus. My point in the post you referenced is that, contrary to popular opinion, the 18 mpg cut-off doesn't unfairly penalize those that have bought Honda or Toyota cars. The vast majority of cars built by American companies in the past 20 years don't qualify either.
Yes, I'm sorry, I was just using "Chrylser LeBaron" as a lazy choice. Seemed easier than typing "Pre-90's Low Gas Mileage Clunker". But I never looked up whether a Chrysler LeBaron would really qualify. I think you are correct that very few cars manufactured after 1990 qualify for the program as most would exceed the MPG cut-off. But while this may be the reality, it still isn't any fairer. IMO the definition of "clunker" shouldn't just be tied so closely to the capable MPG's of the aging vehicle. If the intent is to aide and encourage people to give up inefficent automobiles and make a commitment to purchase newer more efficient automobiles then the understanding that "Clunker" status can be had at almost any age of vehicle and/or with vehicles that might get slightly better gas mileage than the prescribed 18 mpg should be clearly reflected in the execution of the plan. I will admit that I suppose whatever parameters were attached to definition of "clunker" you are always going to leave someone out in the cold. Let's be honest. Despite the idealistic goal of the program, in practice what it becomes is a money give-away. Not all, but most people would be using the program to suddenly get thousands of dollars of value, for an automobile that maybe has hundreds of dollars of value.
I still think if it's designed to get people to buy cars it needs to be available to more people. Best thing to affect everyone would be to allow an interest tax deduction on loans for all new car purchases.
This provision is effective this year through 12-31 for new vehicle purchases. But it applies to all vehicles. Those that buy more expensive vehicles, like SUVs, get more of a deduction than those buying Yaris' or Fits.
So I've already lined this up with my dealer for a mid-late July delivery. (BP/Dk Gray V w nav). Our trade is a '91 AWD Previa that I really would prefer to hold on to, but the $4500 is just too good of a deal to pass up. The main outstanding question we (the dealer an I) have is whether the voucher gets applied before or after the sales tax calculation. Obviously I'm hoping for before, but my guess is that it will be treated like a down payment and therefore would be after. Anyone care to venture how this question will actually get answered by the legal types?
I'm betting after taxes as it's not reducing the sales price, but the final balance due. Just like a downpayment.
I don't know which what it will turn out. However, don't forget the federal sales tax deduction on new car purchases: Special Tax Break on New Car Purchases Available in States With No Sales Tax
I looked up the EPA combined estimate for a '94 Buick Park Avenue (s-charge). The old EPA estimate is listed as 20mpg and the revised EPA estimate is 18mpg. Would I get to use the original or revised estimate? Only the revised estimate would qualify the car as a clunker.
Mileage is based on the EPA combined MPG using the 2008 formulation. (This is the revised mpg that comes up on Fuel Economy not what was on your window sticker) Since you have the supercharged V6 it qualifies.
As I understand it Cash for Clunkers does directly reduce the sales price. It's a cash electronic transfer to the dealer from the government and the DEALER pays taxes on the monies received. Moot in our case as there is no sales tax on a Prius in Connecticut.
Another question... The title to my clunker is in my name but the address listed is my old house from 15 years ago. Is it still valid?
From what we know right now, it should be fine as long as it's in your name and, if need be, you can prove continuous ownership. From what we also know as of now, Clunker Bill cars won't be treated as trade-ins, the money may or may not be taxable but I think that will depend on the individual state. We've heard that here in NY it will be treated like a rebate and therefore taxable. Regardless, $4500 for a 91 Previa is still pretty sweet!
