To the 2.37 people who read the Go-To Gal, you may have noticed it wasn’t in last week. It wasn’t a deliberate omission, just a little “whoopsy” that happens when you work in a busy newsroom. Sorry for the confusion. On with the info ...
Q. With this new “Cash for Clunkers” government program, what is the definition of a clunker? Is the money the government will pay on top of the retail value, or is it all you get?
A. The Cash for Clunkers legislation, officially being called the Car Allowance Rebate System (with oh-so-clever acronym of CARS), will provide $3,500 to $4,500 for people to trade in gaz-guzzling clunkers for a new vehicle. President Obama is expected to sign the legislation but hasn’t yet.
Now, what qualifies as a clunker? A “clunker” that is eligible to be traded in under this program must have been manufactured fewer than 25 years before the date you trade it in, has a combined city/highway fuel economy of 18 miles per gallon or less when new, be in drivable condition, and be continuously insured and registered to the same owner for the full year preceding the trade-in. There apparently are different criteria for very large pickup trucks, cargo vans and the like.
If you’re trading in your clunker, though, the money from the government likely will be about all you’ll get. Why? Well, the law requires the dealer to destroy the vehicle. Translation: They can’t resell it and, therefore, can’t make money on it beyond scrap metal prices, so they likely aren’t going to pony up much beyond the government-allotted rebate.
There are all sorts of other requirements for the program, such as the manufacturer’s suggest retail price of the car to be leased or bought under the program cannot exceed $45,000, it can only be used toward the purchase or lease of a new vehicle, and the amount of the credit depends generally on the type of vehicle you purchase and the difference in fuel economy between your old and new. But as noted, it’s not actually law yet, and some rules are yet to be established. The National Highway Traffic Safety Administration will have 30 days to publish rules for the program once the law is signed.
But just because it’s not official isn’t keeping scammers from getting to work. There are many Web site popping up, implying you need to pre-register or receive a voucher and asking for all sorts of personal information. Beware. They are not real. They are lying to you. You do not need any sort of pre-approval. Click away as fast as you can. (Dealers who register to participate in the program will be able to apply the credit on-site.) To visit the official government site, go to www.cars.gov.
