Cash for Clunkers

How long do I need to have owned the vehicle I'm trading in? The vehicle must be insured and registered in your name and in use for at least one year.

If I have an older car that is in good running condition, or a classic car, is it mandatory for me to turn it in? No. This program is completely voluntary.

What happens to the car that you trade in? The dealer is responsible for sending the vehicle to a disposal facility. The entire vehicle will be crushed or shredded so that the car does not end up on the road again.

How will this affect used-car values? Since the "clunkers" will be taken off the road, there will be fewer older vehicles in the marketplace. However, our analysts don't expect this program to drastically affect used-car values.

Where do I find the mpg numbers to see if my vehicle qualifies for the Cash for Clunkers vouchers? The EPA's combined mileage will be used. This is a combination of the highway and city mileage for vehicles. Models prior to 2008 will use the converted MPG numbers which take into account the new EPA testing methods. This information can be found on the window sticker of the car or at fueleconomy.gov.
Although many vehicles will qualify for the program, it may not always make financial sense to trade it in. We've compiled a list of eligible trade-in vehicles that average 18 mpg or less, and have a value of less than $4,500.

Cash for Clunkers Car Buying Stimulus Bill

 

Does anyones know if the agreement the House and Senate are going to approve next week includes vehicle purchases that go back to March 30 (although I am picking up my Prius next Tuesday)? I know the bill the House sent to the Senate did not include a retroactive clause but a 30 day waiting period. I have an old 1995 van I'd like to trade in.

 

I haven't seen the actual text of the compromise bill so I can't say for sure.

I really doubt the final bill will have a retroactive clause. I say that because the bill requires the clunker to be scrapped. However, vehicles traded in from March 30 to the day the bill goes into effect mostly likely have already gone to auction and have been resold.

 

This bill is truly troubling. I have no words to describe my disappointment in how we're being sucked into this spiraling, free-for-all, money give away ponzi scheme. Yes, a ponzi scheme, because the real losers are our kids and future generations.

 

In addition to the age already mentioned -- 1984 and newer -- the gas mileage also counts. Cars older than 1985 have already cycled off the EPA website (Fuel Economy). For the 1985 models, the 8- and 6-cylinder models qualify, but the 4-cylinder models I sampled do not qualify.

 

Cash for clunkers passes Senate!!!!! :rockon:
Senate salvages 'cash for clunkers' program - Capitol Hill- msnbc.com
Congress Backs War-Funding Bill, ?Cash for Clunkers? (Update1) - Bloomberg.com
According to Bloomberg vehicles purchased between July 1 and November 1 will be able to take advantage of the program. I'm a little skeptical of the dates they give because I have not found other news sources citing the same dates. I might just make the cut supposed to pick my Prius up July 1 might wait until the 2nd to be sure.

 

You are exactly right. I just read through the latest news report that addressed that very topic. Don't know how authoritative it is, but it will NOT be retroactive, due to the fact of the disposal of the clunker as a necessary part of this program, and for the very reasons you cite. Here is the link where I get my updates from: Cash For Clunkers Bill | Program Information Qualifications

 

I don't see those dates mentioned in the articles you have linked above. And, like you, I have not seen them anywhere else, so I remain skeptical as well.

 

I also doubt those dates are correct:

• The bill gives regulators 30 days after the passage of the bill to set up the program. That makes a start date of July 1st out of the question.
• Recent news reports I've read say that the cash for clunkers bill is only being funded till the end of federal fiscal year 2009 which ends September 30th.

 

Amen to that. The result of scams like this is the dollar will weaken, the price of oil will increase, and the Prius MPGers will be even more crazed about chasing the dream...little known as the deindustrialization of the United States. What suckers, huh?

 

Senate Passed "Cash for Clunkers" Program Today..
"Senate..60-36 vote, winning the minimum number of votes needed"
"The House approved the..bill last week on a vote of 298-119"

WASHINGTON (AP) -- Congress approved a "cash for clunkers" program Thursday to provide government incentives of $3,500 to $4,500 to motorists who trade in their gas guzzlers for more fuel efficient vehicles after Senate Democrats narrowly defeated a Republican effort to kill the plan.

The bill provides $1 billion for the program from July through November.

"Under the proposal, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 mpg. The value of the voucher would grow to $4,500 if the mileage of the new car was 10 mpg higher than the old vehicle."

(note from Rybold: Despite the narrow 18 to 22 range, how many Honda cars have less than 18mpg? zero. Toyotas? zero. So, despite the narrow range, the only people eligible to trade in a vehicle are people owning vehicles that get 18mpg or less. In other words, forget about the "22" for the moment (that's another discussion), and focus on the "18." What vehicles actually get 18mpg or less? You say that some people may abuse the 18 to 22 range - but think about it. It's a very small demographic.
Or is it? Trade in a Suburban for mid-size SUV? Maybe. I still think that's a very small percentage of the population. Am I wrong?) Quick math: $1Bill/[(3500+4500)/2] = 1Bill/4000 = 250,000vehicles

But wait a minute! What the ..? What is this paragraph??????
"Owners of sport utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV got at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV was at least 5 mpg higher than the older vehicle."

First they tell us "18mpg" and "22mpg," but then they say "2mpg" for SUVs and trucks. Huh???

"The bill directs dealers to ensure that the older vehicles are crushed or shredded to get the clunkers off the road." Who's going to take the loss for that? The already-struggling dealer? Will the Govt reimburse the dealer? ? ? ? If the dealers are supposed to take the loss, then this plan is D.O.A. No dealer can afford to participate in this program - even if the vehicle is only worth $1000. They can't afford to take any loss. The buyer saves the $4500, not the dealer. They dealer gets their normal income .. and then the dealer is supposed to turn around and crush the trade-in instead of reselling it? That's not going to happen!

Senate Passes "Cash for Clunkers" Program- Yahoo! Autos Article Page

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"In Japan, people who trade in a car 13 years or older get a 250,000 yen ($2,500) rebate for
buying an ecological model. Those without a trade-in get 100,000 yen ($1,000)."

Toyota gets 180,000 orders for new Prius hybrid - Yahoo! Finance

 

Your right JSH. The Associated Press: Senate passes 'cash for clunkers' program
The seventh paragraph from the bottom states that the program will not being until early August but two paragraphs above that points out cars traded in during July will qualify as well. Anyone before August might have to pay full price and may have to return to the dealer for the "cash" or placed on your tax returns at the end of the year. Still many unknowns. For myself this would aid me in lowering my monthly payment and get the rusting '94 van off the driveway.

 

Very few cars of any make qualify for the program. This program is written to target light-trucks.

The demographic is huge. ~ 50% of the vehicles on the road are light trucks and most qualify to be traded in for a voucher.

You car correct that $1B doesn't go very far. If you want to take advantage of this program don't wait.

The rules are different for light trucks vs cars. Both require the trade-in to get 18 mpg combined or less.

Cars:
+4 mpg or better = $3500
+10 mpg or better = $4500

Light Trucks:
+2 mpg or better = $3500
+5 mpg or better = $4500

I'm not sure how you think the dealer is going to loss money on this. the voucher comes from the government not the dealer. The dealer won't give a buyer any money for the trade-in.

So if you traded a truck normally worth $1000, the dealer would give you $0 and the government $4500. The buyer comes out $3500 better than normal and the dealer isn't out anything.

Selling the clunker for scrap will cover transportation from the dealership to the recycler.

 

Thank you for clearing this up. So, the vehicle is going to have to be literally a "clunker" (value of less than $3500 or $4500) and the voucher covers the loss. But also, some money will come from selling it for scrap (which I assume is less than $1000). Thank you for clearing that up.

 

The 1995 Buick Regal my kids have is rated for 17 to 26. Is the 18mpg to qualify an average or possibly (hopefully) the city rating.

 

This is not a problem. An old car is worth $100 more then the price of carting it away. There are offers all over my area for $150 cash for any old car.
The bill says a car has to be scrapped/crushed but it does not disallow some parting before scrapping. The dealer will make money (probably $150 or so) for each scrapped car.

 

It's the combined average. :mmph: My '97 Ford Taurus doesn't qualify either. It gets 17 mpg on a good day and has been known to leave puddles of coolant in parking lots...but because it got 21 mpg combined when it was new, apparently it's not enviromentally-destructive enough to qualify as a Clunker.

 

Can you trade a Van or Light Truck for a Car? Is there anything to keep you from selling the new car in a week or two, from when you buy it? I have a family member that could take their Van of the street and buy my pri and re-sell it to me. I think my car should be arriving soon. On the other hand still have not got Vin and it is a PV atp so who knows...Plus I will be out of country soon for two weeks. That would delay pickup of my car, until July 18th.
Any Thoughts

 

I don't know of any limitation on selling the new car.

However, it will probably take 30 days for the program to get up and running after Obama signs it, so July 18th may be on the optimistic side. Some are speculating that it will be the end of July or early August.