Cash For Clunker Rules that I came across…

Well I was looking into the Cash For Clunker program for a client of mine…..the program sounds great until you get into the details, then once you start reading, it narrows the field a lot, it is great IF you fit in the catagory. In my search I found an article that outlined the following details pertaining to the program, see link below for full article.

**The vehicle being traded in must be in drivable condition, be no more than 25 years old, and get no more than 18 miles per gallon (mpg).
**The same person must have owned and had the car insured for at least one year before trading it in.
**You must buy a new vehicle. Used vehicle purchases aren’t eligible for the program. Moreover, the vehicle can’t cost more than $45,000.
**If you buy a new passenger car, it must get at least 22 mpg. If it gets 4-9 mpg more than the car you traded in, then you’ll get a $3,500 rebate. If the new car is better by 10 mpg or more, then you get a $4,500 rebate.
**If you buy a new truck or SUV, the rules are different. “Category 1” trucks, which include most SUVs, pickups, and vans, must get 18 mpg. Those that get 2-4 mpg more than the traded-in vehicle earn the $3,500 rebate, while a 5-mpg difference or greater earns $4,500. Category 2 trucks, which include larger trucks and vans, must get 15 mpg, and their breakpoints are 1 mpg and 2 mpg or greater.
**The program is scheduled to run from July 1 to Nov. 1. But once the program runs out of money, you’ll no longer be eligible for the credit, even if you would otherwise qualify.
**Traded-in vehicles must be destroyed and sold for scrap rather than resold by the car dealer. Therefore, you won’t receive full trade-in value for your vehicle; you’ll get the lower scrap value instead.

http://www.fool.com/retirement/general/2009/07/29/why-cash-for-clunkers-wont-save-the-economy.aspx

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~ by debt2dreams on July 31, 2009.

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