Cash For Clunkers Program
What You Need to Know About the "Cash For Clunkers" Program
The new “Cash for Clunkers” program that began on July 1, 2009 has proven to be successful in some aspects, and not so successful in others.
What is “Cash for Clunkers”? This is a U.S federal program that was designed to help U.S residents purchase a new vehicle, by trading in their current less fuel efficient vehicle. When you trade in your vehicle the program grants you a maximum of $4,500. The amount you receive depends on the fuel economy rating of the vehicle you are trading in. However all trucks made prior to 1999 receive $2,500 regardless of fuel economy. In order for your vehicle to be eligible for the program it must meet certain requirements. The vehicle must be less than 25 years old, a purchase of a 5 year minimum lease for your new vehicle, the trade in vehicle must have had continuous insurance and registration, and the trade in vehicle must be drivable.
Even though there was $1 billion allocated for this program expected to November 1, the money ran out just a month after the program started. The program received a huge response, and there was definitely more demand for this program then the finances allowed. With the financing situation looking bleak, Senate is currently considering adding an additional $2 billion to the program.
For those U.S citizens that were lucky enough to be able to participate in the program while there was still funding, even though unorganized, it was definitely a big financial help. For those U.S citizens that unfortunately did not get their trade-in turned in fast enough, hopefully Senate can pass the new “refill” for “Cash for Clunkers” and they can save $4,500 towards a new, fuel efficient vehicle.