Cash for Clunkers Program 2009

The clunkers for cash program while very popular with the public needs some attention from Congress to keep it going. The program has been very successful but has run out of money because of that success. It’s a two-sided sword. Perhaps Congress and the Senate will add more funds for the program so others can enjoy the specified savings.

There have been some hiccups with the program so far. Many dealers have complained that the government has not gotten back to them in a timely manner which just holds up the delivery of their customer’s automobile.

The maximum rebate program is $4500 but your car can be no older than 25 years old and hasn’t gotten 18 miles per gallon or less. It will have to be registered and insured for the past year. You will also receive the scrap value for your car since it has to be taken off the road and measures taken to ensure that it never runs again.

You see many advertisements for new cars on the television offering to supply you with a great deal including the $4500 that the government allows. However, in my experience car salesman like to play with numbers to make you think that you’re getting a deal when in fact they’re not offering as much as they should.

There a few questions that you should ask yourself before participating in this program. Do you in fact need a new car? This is the most important question. You need to ask yourself if you’re just responding to the increased amount of advertising because of the success of the program.

Keep in mind that when you purchase a new vehicle you’re going into debt for many years and normally for well over $10,000. Perhaps your debt level may be as high as $30,000 for a new car. Is this a smart thing to do right now? We live in a fragile economy and most of us know people being laid off or hours reduced. You need to ask yourself if this is the smart thing to do because in fact, it may be smarter to forgo the rebate and buy a used car or keep the car that you have.