Cash for Clunkers - Buy a Clunker, Trade it In?

There is a minimum qualifying time, 1 or 2 years. The program may no longer exist, or the voucher limit may have been reached, before you qualify.

 

The clunker in question needs to have been insured continuously by the person trading it in for the previous 12 months. That's how they prevent what you're describing.

 

Man if this is the case - politicians caved. If this 1 year incentive program (that is costing us taxpayers $4billion is inacted with this 120 day loophole - this stinks. This would be SO open to fraud. Buy a junker keep it for 3 months and trade it in for a car you may have purchased anyway. Gonna be a lot of shenanigans goin' on. Just wonder what the final language will be. Speaking of that I needed to clean up my language writing this. Darn politicians.

 

That is a really old version of the bill that was introduced in January and was tabled in committee.

This is the latest version that just passed the House:

(7) the term `eligible trade-in vehicle' means an automobile or a work truck (as such terms are defined in section 32901(a) of title 49, United States Code) that, at the time it is presented for trade-in under this Act--
(A) is in drivable condition;
( B ) has been continuously insured consistent with the applicable State law and registered to the same owner for a period of not less than 1 year immediately prior to such trade-in;
(C) was manufactured in model year 1984 or later; and
(D) in the case of an automobile, has a combined fuel economy value of 18 miles per gallon or less;

Search Results - THOMAS (Library of Congress)

 

The insured bit's in the version that passed the House (HR 2751). Sec 2.i.7

 

As JSH pointed out, that is not what passed the House this week.

And beware that requirements will likely change again before this becomes law.

 

Phew. I worried that our D.C. legislators went backwards on the ownership time for this Bill; thought I saw it was 1 year last week.

Sorry for my rant in post #5. This makes me feel a whole lot better as a taxpayer...comforted to know our $4billion for this program will be well spent.:violin:

 

I must say this is not the cash for clunkers bill I wish they had passed.

With the proviso that they should be registered, drivable vehicles:

Old is 'polluting', new is 'clean', so getting old, unloved vehicles off the road should be supported. (It will be interesting to see if old loved vehicles are so valuable they get crushed. Ideally you should be allowed to outbid the government to save a 1970 Mustang Boss 429)
In a similar fashion old is a 'death trap', new is 'safe', and we could save some lives (often teens) if we preemptively crushed all ancient clunkers that do not meet safety standards.

Many cars trickle down, if you can show that person 'A' bought this car, and others got newer beaters as a result, you should be able to deduct the beater that is crushed as a result of this sale, regardless. (Jimbo buys a new 2009 Prius and gives his 2001 Forester to his daughter Ami, who sells her 1989 Corrola Alltrac, to Shara, who crushes a 1971 Ford Pickup)

Personally, as I bought a new Prius this March, I am sad it does not apply to the entire tax year.

With the 'must be the same person registered' and not pre 1984 and less than 18 MPG, it will crush more new Hummers than old clunkers. Not that that is a bad thing, but less environmentally friendly and less safety friendly than my ideal.

 

The bill is really about getting people to buy new cars - having the nominal increase in mpg is just window dressing. They say that a similar bill in Germany has dramatically increased new auto sales there.

 

I lot of people seem to be missing that. As you said this is an economic stimulus bill that has a small component of environment improvement. It is modeled on the very successful German bill that has seen German car sales increase 30% for 2009 over 2008 while US sales have fallen 40%.

The House and Senate have negotiated a final bill so it is ready to go to the President's desk as part of a war funding bill. The mileage requirements have changed again:

CARS:

• The clunker must get EPA combined mpg of 18 mpg or less
• $3500 for a new car that is 4 mpg better than the clunker
• $4500 for a new car that is 10 mpg better than the clunker

TRUCKS:

• The clunker must get EPA combined mpg of 18 mpg or less
• $3500 for a new truck that is 2 mpg better than the clunker
• $4500 for a new truck that is 5 mpg better than the clunker

House and Senate agree on Cash for Clunkers bill, mileage requirements revealed - MotorAuthority - Car news, reviews, spy shots

So if you are planning on buying a clunker to trade you better do it in the next couple of days and get it registered and insured ASAP. You need to have the vehicle purchased and paperwork done before the president signs this bill into law.

 

That could really screw you over though. They're now only planning on initially funding $1 billion of the program and then possibly increasing it later. So if they don't increase it, and you can't use the money until close to the end of the time period, the vouchers may run out before you are eligible to use it.

Then again, I guess I should keep my mouth shut. Anybody who buys a clunker to try to scam the system deserves to get screwed on the deal.

 

If they just want people to buy new cars then don't tie it to the clunkers. I still think it's a stupid idea since the only trade ins that qualify have to be crushed. Nothing of real value will be crushed so people with real junk that they probably couldn't drive will get these vouchers.

If this does look like it will pass I may indeed consider the purchase of a clunker vehicle and trade it next year right before the deadline. If you buy now and have one year after the bill is signed the you'd have a clunker to trade in late next June. $4500 off a new Prius is a pretty good deal, especially if they are discounting them $1K by next year. I'm sick of the stupid ideas coming out of Washington lately and the only way to stop it is to take advantage of it and show the stupidity.

And if you don't consider it a stupid idea then you probably shouldn't critize anyone for buying a clunker and taking it off the road.

 

Why???? If the real goal is to get clunkers off the road, then why is buying one and crushing it to get the deal any worse than someone who has the clunker passing it along at a cheap price and them buying a nice used car they can afford and then me or someone in turn taking the clunker off the road and buying a new car with the voucher.

Personally I see this as a BS program and a waste of taxpayer money. But if you accept this program as helpful then it really shouldn't matter who takes advantage of it as long as the final desired outcome is achieved. Don't be a hypocrital. Unless there is a hidden adgenda on this (and then it's decieptful to the American public) it simply doesn't matter who makes the trade in and who gets the voucher.

 

A scam is dishonest. Following the law to the letter is the only truly honest way.

 

My understanding is: (1) You must have legal documents proving that your clunker has been registered in your name for the past 12 months, and (2) you must have legal documents proving that your clunker has been insured in your name for the past 12 months.

 

The best way to do this is to have a family member with a clunker buy the car you want and then sign it over to you. This would work out well if they have a clunker worth $1k...you could give them $2k for their trouble.