The Cash for Clunkers has been approved and the next step that many are certainly awaiting would be the list of vehicles that qualify for the said program. The list of cars have been released but this early, the terms of the deal are not the ideal.
Surely, vehicles still operating satisfactory may be better off being sold by owners or even trading it in. Whichever course of action a car owner may choose, it certainly looks ideal if this Cash for Clunkers Rebate program is the final guidelines issued:
- It will offer no more than $4,500 to new car buyers.
- It will require the trade-in vehicle to be crushed (which means that owners will not collect any trade-in value.)
- Cars to be scrapped would have to have EPA combined fuel economy ratings of 18 miles per gallon or less, and the new vehicle purchased must earn better mileage.
- The participant must have owned the “clunker” for one year.
Vehicles:
- 1996 Honda Passport ($1,227)
- 1997 Lincoln Continental ($1,179)
- 1998 Chevrolet Silverado ($3,378)
- 1995 Audi A6 ($1,261)
- 1996 Toyota Land Cruiser ($4,042)
“This legislation attempts to offer a benefit for the environment and to spur vehicle sales, but the reality is that it does neither very well,” asserted Edmunds.com CEO Jeremy Anwyl. “In terms of vehicle sales, the only consumers who will be interested are those willing to take no more than $4,500 for their current car and yet be financially able to buy a new one – quite a narrow profile.”
(Source) Press
Tags: audi a6, better mileage, car buyers, car owner, Chevrolet, chevrolet silverado, clunker, fuel economy ratings, Honda, honda passport, lincoln continental, mileage, narrow profile, new car, participant, rebate program, toyota land cruiser
2 users responded in this post
60% the cars that are currently donated to charity will now be eligible for a $3500 or $4500 voucher under the cash for clunkers program. Since the tax deduction for donating a car is only $500 or what the car sells charities won’t be able to compete with the program and charitable car donation will end. A better idea is to just change the amount a person can deduct for donating their car back to the book value. That way every car is eligible, the government doesn’t have to spend $4 million of our dollars giving away vouchers and trying to administer a program that is way too convoluted!
2 users responded in this post
My dad swears by the car buying process here: http://excarsalesman.typepad.com/
I haven’t tried it yet, but I might because it looks good. I have an old civic that doesn’t qualify