cash for clunkers qualifying cars

Cash for Clunkers was suspended Thursday as reported yesterday after running through all the $1 billion in six days.What does that mean for you today, Friday? Don’t go to the dealerships asking for Cash for Clunkers vouchers – they won’t be and shouldn’t be honored. The Cash For Clunkers Program initiated by Congress this year is a great step in rebooting the auto industry and maybe even our economy.

Cash for clunkers, Defined: You can only trade in drivable vehicles made in the last 25 years that have been continuously insured by the same owner for at least one year leading up to the trade in (so no junkyard finds or used cars bought to “flip”). Qualifying “clunkers” will have a fuel economy rating of no more than 18 MPG (combined city and highway ratings, which you can find on fueleconomy.gov).

However, after spending 96 million dollars in less than a week buying back “clunkers” the government might be reluctant in continuing this program. While the program is supposed to run July 1 through November 1,

The U.S. Department of Transportation has 30 days to set regulations for the program — including how dealers should crush, shred or otherwise dispose of traded-in clunkers — after it gets Obama’s signature. Legislators, however, have laid out the basic framework. Here’s how it works:

Cash for clunkers Trucks and SUVs: For light trucks, SUVs and minivans, the new vehicle has to get at least 18 MPG and can offer as little as a 2 MPG improvement over the old one to qualify for $3,500. With a minimum 5 MPG improvement, you can qualify for $4,500.

Cash for clunkers How Much Cash?: New cars qualify only if they have a sticker price of $45,000 or less. So no Tesla Roadsters ($109,000), but a Toyota Prius ($22,000) could qualify, depending on your trade-in. And once the $1 billion appropriated for the program runs out (good for an estimated 250,000 vouchers), it’s over unless Congress extends the program.

Cash for clunkers Passenger Cars: New passenger cars will qualify under the program only if they have a fuel economy of at least 22 MPG. If the new model gets four more miles to the gallon than the old car, you qualify for the $3,500 credit. With a 10 MPG improvement or more, you can qualify for a $4,500 credit.

While the delivery of news updates were flawed, Washington is applauding CARS’ success. Senator Debbie Stabenow said it was a great success in a statement It is amazing that ‘cash for clunkers’ would be this successful this quickly. I urge Congress and the administration to provide additional funding.