Cash for Clunkers Stimulus Program – Dealers Awaiting Fine Print
chuvachienes on News, Politics
Part of a new Federal Stimulus Program is a program called C.A.R.S – Car Allowance Rebate System. It allows owners of older cars, primarily gas guzzlers to trade in their vehicle for cash between $3500 to $4500 US Dollars to purchase a more efficient vehicle. The Federal Government has alloted $1 billion dollars for this program hoping that it will work similar to what Germany has done which boosted their car sales by 40%.
Dubbed as the Cash for Clunkers program, or Car Allowance Rebate System, was signed into law last month by President Barack Obama and officially started July 1. But for dealerships who have customers who qualify won’t actually get their cash until July 23rd.
Hyundai Motor Co., South Korea’s largest carmaker, is advancing money to U.S. dealers so they can sell cars immediately to customers taking advantage of the deal, according to media reports.
Part of the overdrive is a worry that the money allocated to the program, just $1 billion, will run out before it expires on Nov. 1.
These are few of the qualifications:
- Your car must have had an MPG of 18 mpg or less when it was brand new (the time that the car first rolled off the lot)
- Your car should only be 25 years old or less
- You should own the car for at least one year and insured within that full year under your name
- Your car must be in drivable condition.
Germany’s program worked really well. The difference? They invested $5 billion dollars in the program. Find out more – Visit Cars.gov
