Cash For Old Cars


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Cash For Old Cars

Cash For Old Cars

The U.S. Government has passed an assistance program that is being called the 'cash for clunkers' plan. The official name of the program is the Consumer Assistance to Recycle and Save Act of 2009, but 'cash for clunkers' has become an adopted name of sorts for those dealing with the procedures of the act. The name being used to represent the Act by Government agencies is currently the Car Allowance Rebate System (CARS). The basis of the act is to help consumers attain more fuel efficient vehicles by providing a cash credit for a low MPG vehicle that they would trade in at the purchase.

Cash for Clunkers Purpose

As laid out in the Consumer Assistance to Recycle and Save Act of 2009, the Department of Transportation views the program as a way to convince consumers to trade in a less fuel efficient car or truck and receive a tangible benefit for doing so. The act is outlined here and could potentially be a very large wind-fall for some consumers that take advantage of the program. An example of someone that could come out ahead under the cash for clunkers stipulations, could be someone with a SUV that has over 100,000 miles and doesn't receive very good gas mileage. Under the program, an owner could turn in the car for possibly more than it is currently worth, and put that trade in value towards the down payment of a new, and more fuel efficient vehicle.

Cash for Clunkers Incentives under the Car Allowance Rebate System

The biggest cash for clunkers incentive that consumers can reap from this Act is assigned trade in value. The incentives are slated at $3,500 or $4,500 depending on the new car that is being purchased in conjunction. It's a sliding scale, with the bigger difference between the current MPG rating, and the future MPG rating of the new car taking into account. This leaves the consumer with the thought as to whether or not the $3,500 or $4,500 is worth more than the typical trade in value would be for a car of their year, make, and model.