Posts Tagged ‘CARs legislation’
Cash for Clunker Details
Monday, June 29th, 2009
10 Things You Need To Know About The Cash For Clunker Program
In June 2009 Congress passed the Consumer Assistance to Recycle and Save Act of 2009 (known as the Cash for Clunker law) which grants consumers a $3500 or $4500 credit when they trade in a used vehicle and buy a new one. The language used in the law mentions the use of vouchers, but the program is actually issuing rebates or credits directly to car dealers. The CARS legislation is based on similar programs have been used in Europe with mixed results. The basic requirements of the US program are as follows:
1.The trade-in vehicle must be 25 or less years old.
2.It must receive 18 mpg or less in mileage as determined by federal fuel efficiency information.
3.Large trucks may not have any official fuel efficiency information, but trucks manufactured before 2001 and that are less than 25 years old should be eligible or the credit.
4.Consumers must purchase a new car or enter into a 5 year lease for a vehicle valued at less than $45,000.
5.The trade-in vehicle must be registered and have had insurance for the past year.
6.No voucher is required; the dealer will request a credit from the government directly.
7.Dealers must register for the program. As of June 2009, this process is underway.
8.Trade-in value may be limited to the scrap metal value of the vehicle as trade-ins may not be resold. Although individual dealers may offer special trade-in incentives.
9.Allocated funds will only provide rebates and credits for approximately 250,000 consumers, although future funding may be made available.
10.The program runs just for 5 months, from July 1st to November 1st.
photo credit: 1001 Nights
Tags: CARs legislation, cash for clunker, cash for clunker dealers, trade-in vehicle
Posted in General Information | No Comments »