UPDATE Wednesday 7/1/09
Reported by:
John Matarese
The "Cash for Clunkers" program is finally law. Thousands of car owners may be eligible for a voucher for as much as $4500, that they can use toward the purchase of a new car between July 1st and November 1st.
The Government has just launched the official website for the program,
cars.gov. (Click the link above.)
July 1st Comes and Goes: No DetailsBut unfortunately, the program did not get up and running on July 1st, as it was supposed to.
The Government says it
may take until July 23rd before it has all details worked out.
That leaves car owners and dealers in the dark, with just a few dealers now taking clunkers. Some are basically going ahead and giving customers $4,500 in trade, hoping they will get reimbursed down the road. So check with your local dealer to see if they are doing anything yet.
Beware Clunkers Scams Many unofficial websites using the term "Cash for Clunkers" are now popping up: these are not Government sites, and some may be scams. Do not give them personal information such as Social Security or Credit Card numbers.
You do
not have to register or get pre-approved online. All you have to do is show up at a particiapting dealer.
It's potentially a great deal, if you qualify. Unfortunately, there's a good chance your old car won't qualify.
Who is EligibleOwn a beat up minivan? How about a pickup truck with a rusted bed? Or a truck that has sat in your yard for years? If so, you -- like Teresa Galloway -- may be wondering if your vehicle qualifies for the new cash for clunkers program.
Teresa, who we found filling up her old Chevy at a Shell station, told me "it all depends how much they'll give for an old car."
Teresa tells me she'd love to get $3,500 or $4,500 for her 1994 Chevy Corsica, but says if she can use it only to buy a new car, it won't help her.
"For a used car, maybe. Not a new car, no," she said. Unfortunately for Teresa, it doesn't apply to used cars...as the goal is to boost new car sales.
What Qualifies, What Doesn't
The ideal vehicles the government considers clunkers and would like to give you cash to get rid of: the millions of mid 90's SUV's still on the road...along with fulll size pickup trucks from the 80's and 90s, many of which get only 13 mpg.
You can receive a voucher for
$4,500 if your new car gets 10 miles more per gallon than your old car. If your new car gets between 2 and 9 miles per gallon more, then you qualify for a
$3,500 voucher.
The key provision: The old car must get 18 mpg or less, according to the EPA. Click the above link to learn your car's average mileage.
- For that reason, most small and midsized cars won't qualify. No old rusty Ford Escorts, Chevy Cavaliers, Dodge Neons, Toyota Corollas, Honda Civics, or other small cars commonly considered "clunkers" need apply: their EPA mileage numbers are too high.
- In addition, it must be a 1984 model or newer, which prevents junking "classics," like early Mustangs and Camaros.
- One other caveat: The car must have been insured for the past year, which prevents scavengers from running to salvage lots and turning in junkyard cars for money.
As for Teresa, it turns out the EPA says her Corsica gets 20 miles per gallon, so it doesn't qualify.
Bottom LineCritics say the plan benefits high income familes more than low income families, who cant afford a new car, even with the voucher.
It cannot be used for a used car.But the goal is eliminate guzzlers and jump start new car sales. And thats what it does.
The program begins July 1st, and runs through November 1st, 2009. It will not be retroactive, however, to cars bought earlier this year. And it will not last until March 2010, as originally planned, because Congress has reduced the available funds.
So if you have what is considered a guzzler, and you are interested in a new car, give the a look, so you don't waste your money. Im John Matarese.
