Car dealerships around the United States are hoping the Car Allowance Rebate System (CARS) or Cash for Clunkers Program introduced by the government will spur on new business growth and increase sales for the auto industry. The program really satisfies two basic needs: the stimulation of our economy and the preservation of our environment through vehicle fuel efficiency.
The Cash for Clunkers Program has been created to allow car owners to trade in their older and less fuel-efficient vehicles for more fuel efficient ones. Te prerequisite is that the vehicle has to have been manufactured in the last 25 years, with a combined gas mileage 18 miles per gallon or less. The automobile must also be in drivable condition, insured and registered to the same car owner for at least 1 year before trading in. Cash For Cars Sydney
If your vehicle qualifies and meets the above requirements, a trade in will get you a voucher in the amount of $3,500 to $4,500. The voucher goes towards the purchase or lease of a new car. You car or truck may fall anywhere in that voucher amount range ($3,500 to $4,500) depending on how the fuel economy of the vehicle rates. For example, if your clunker does 10 miles to the gallon (which is significantly less than 18mpg) you can receive a voucher credit for $4,500.
One positive to the Cash for Clunkers Program is that the initiative will not affect any rebates or discounts offered by dealerships and it has the potential to make cars more affordable for some whether they are leasing or buying a new car with greater fuel efficiency. Any positive impact the program has on car sales will most certainly be welcomed. In addition, certain trucks that can qualify for fuel efficiency requirements will differ. More information can be found at cars.gov.
However, there are drawbacks. One drawback is that the trade in is for a new car with better fuel efficiency. Some have stated it might be better if you could also trade in the clunker for a used car with better also. After all, some people, even with the voucher may still not be able to buy a new car and so the voucher would do very little good for them. They may decide to keep their clunkers until they can get over their personal financial crisis and purchase a new car.
If this program runs out in only a few months, struggling “clunker” owners may not be in a better financial position to take advantage of the Cash for Clunkers Program. This brings us to a second drawback of the program; it’s too short lived. The program is expected to run until November 1, 2009 or until vouchers run out. Things may not change for most people.