Monday, July 27, 2009

'Cash-For-Clunkers’ Plan Detail

Okay people it's time to PIMP YOUR RIDE! Here are the requirements :
  • Your vehicle must be less than 25 years old on the trade-in date
  • Only purchase or lease of new vehicles qualify
  • Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
  • Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
  • You don't need a voucher, dealers will apply a credit at purchase
  • Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
  • The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.
  • Almost 16,000 U.S. auto dealers have applied to participate in the “cash-for-clunkers” vehicle trade-in program, or about 80 percent of the nation’s new- vehicle retailers, Transportation Secretary Ray LaHood said.

    The government is trying to help jump-start slumping auto sales through the program, giving consumers new-vehicle credits of as much as $4,500 for turning in older cars.

    Consumer Incentive

    The $1 billion in federal subsidies may spark 250,000 new car sales, U.S. lawmakers have said. They’re betting the clunkers effort will help spur purchases by consumers who weren’t otherwise in the market for a new car.

    John Bailey, 26, said he traded in a car two days ago for a new Chevrolet Cobalt. Bailey, of Manassas, Virginia, said he wouldn’t have traded in his 1994 Oldsmobile had it not been for the cash-for-clunkers plan.

    “It’s a great incentive for consumers,” said Bailey, who works in the shipping and receiving department of a semiconductor manufacturer.

    Cash for clunkers will end Nov. 1 or when the $1 billion in subsidies expire, whichever occurs first. Congress must decide later this year whether to approve legislation extending it into 2010.

    “With the tremendous public interest leading up to today, we anticipate that the $1 billion in funding for the cash for clunkers program will go quickly,” John McEleney, chairman of the McLean, Virginia-based National Automobile Dealers Association, said in a statement today.
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