Clunkers For Cash Program

Cash for clunkers program was started to help out citizens with older more toxic fuel burning vehicles. Trading in these older vehicles for newer vehicles can help the environment because the newer vehicles emit less emissions harmful to the environment.

In order to receive the maximum of $4500 in the form of a rebate which your auto dealer can apply instantly once the paperwork is true you need to adhere to some of the requirements. This program helps the consumer and it helps the auto industry to get back on its feet from the devastation of the recent financial crisis.

Let me list some of the requirements: your vehicle has to be less than 25 years old at the time of the trade in date. The rebates only apply to the purchase or lease of a new vehicle or nearly brand-new. The term used is new vehicle quality. The gas mileage of the trade-in vehicle must be 18 miles per gallon or less.

The 18 miles per gallon rule is to help to save the environment from gas guzzling emission hog vehicles. Your trade-in vehicle will have to have been registered and insured for the previous year. Instead of using a voucher your dealer will take care of the paperwork for you. The program runs through November 1, 2009 or when the program’s funds are exhausted

Many dealers have complained that they have not gotten answers and resolutions to the applications in a timely manner. You’ll also be credited for the scrap value of your vehicle as your vehicle needs to be scrapped and that value will be added to your rebate. Don’t get too excited because this is normally a minimal amount.

The program seems like a good idea at first. It allows the consumer to get a new car at a lower price and to stimulate the automotive industry. However, keep in mind that buying a new car still means going into debt by several thousand dollars. We need to learn our lessons, during the recent financial crisis of 2008 and 2009 many people realize that that was a bad thing and that they could lose the possessions that they held dearly. This program may be used to help the automotive industry but it may not help the individual who was in debt and six months from now has no job if the financial crisis reemerges.