Cash for Clunkers Explained

by admin on July 25, 2009

Out of Gas Newsletter – Issue 47 July 25, 2009

Summer Savings for you.

++ News –

I really can’t believe that Summer is almost over. We live in Kentucky and the past weeks have been pretty cool compared to other Summers. The past couple of weeks the temps have only reached the low 80’s. I have no complaints though since hopefully that will cut down on the electric bill.

This week we’re going to talk about the Feds New “Cash for Clunkers” Program and tips for keeping your job.

THE Cash for Clunkers Program

This weekend starts the “Cash for Clunkers” program. What it boils down to is if you trade in a vehicle with low gas mileage, and purchase one with better gas mileage, the federal government will give you up to $4,500. I shouldn’t say they give it to you, they’ll give it to the dealer, and the dealer will take it off the bill. They will also give you money for the scrap value of your vehicle.

Complete information about the plan can be found here – http://www.cars.gov/

Some notes –

The program ends Nov 1st or until the funds are exhausted – whichever happens first.

Make sure to shop for the car you’re looking for just like we described here.

About your Car / SUV –

It most not be older than 25 years.
You must have licensed it / insured it at least for the past year.
It must have a fuel economy of 18 mpg or less – you can find the fuel economy for your vehicle by going here.
http://www.fueleconomy.gov/feg/findacar.htm

Click on the model year — Make — Model
You’ll find several choices here – click on the type of transmission / size of the engine.
You will find 3 numbers – City / Highway and combined (a red number) – the red number is the one you will use.
You must be able to drive it (so not a push/pull or tow sale).

About the Car you’re buying

All dealers must participate in the program
You may purchase or lease a vehicle – if you lease a vehicle you must lease the vehicle for at least five years.
The retail price cannot exceed $45,000.00
The vehicle MUST be new.
The vehicle can be foreign or domestic.
The new vehicle MUST have a combined fuel economy of 22 miles per gallon for cars and 18 miles per gallon for SUVs / Trucks.

Figuring your credit.

Lets say you’re old vehicle got 18 miles pre gallon.

For Cars

$3500 credit – 4 miles per gallon to 10 miles per gallon better. So if I bought a car that got 22 mpg to 28mpg I would get $3500.
$4500 credit – greater than 10 miles per gallon – using our example, anything better than 28mpg (29+).

For SUVs the numbers are slightly different. This is straight from the Cars site –
If the new vehicle is a category 1 truck that has a combined fuel economy value that is at least 2, but less than 5, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new category 1 truck has a combined fuel economy value that is at least 5 miles per gallon higher than the traded-in vehicle, the credit is $4,500.

You can combine incentives –
Dealers CANNOT charge you a fee.

Have a Wonderful Weekend!

Our Next Issues

Keeping the Job you have

Pay your bill off plan.

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