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The "Cash for Clunkers" bill was officially known by the acronym CARS, which either stood for Consumer Assistance to Recycle and Save or Car Allowance Rebate System. This program supplies $1 billion worth of vouchers to American car owners who trade in their old vehicles in exchange for a voucher for up to $4,500 to help buy a new, more fuel-efficient vehicle.
Many car owners still drive SUVs and large trucks because of their lack of environmental awareness.
At first, this almost seems like you have to bribe people to become environmentally conscious. The thing is, at a trade-in value of maximum $4,500, they may not be getting the best trade in value for their clunker or gas-guzzler. Unless you're driving a really old car and you decide to get something more recent, you would really be losing! This bill will benefit smaller businesses that use older work vehicles. The Cash for Clunkers program is patterned after European countries that have used the same methods to increase new model car sales.
It's important to emphasize the voucher given in this program is "up to $4,500 which means it could be considerably less. It depends on just how fuel-efficient the newer car is. The program really benefits consumers whose car trade-in value is worth less than the cash incentive. You also need to have money to buy a new vehicle or at least good credit to get any financing. A new vehicle, even a fuel-efficient one, may average $25,000 to 30,000. For most people buying a new car will mean larger car payments, which is not desired in the current economy. This program was really created to upgrade the U.S. auto fleet.
Beware: There are websites with similar sounding programs that are not connected in any way with the government's Cash for Clunkers program. Some of them may even ask you to supply personal information, such as a social security number or date of birth.
The key here is value. Although the spirit of the Cash for Clunkers program is positive, one might do better at a cash-for-car dealership such as Quick Cash Auto that regularly buys used cars of any make or model and often beats the trade-in price. For those of us who are on the losing end of this government bill, you should first investigate what you can get for your used or old vehicle as they are in more demand than newer cars.
The idea here is to trade your old car in for a used "fuel-efficient" vehicle. Any other type of vehicle purchased as result of a trade-in would not help the environment nor could you take advantage of any other incentives available for fuel-efficient cars. Check fuel consumption ratings for used vehicles to determine your available incentives.
Cash for Clunkers is not a benefit if you come out on the losing end of the stick. If you do some investigating first, you should be able to improve your financial gain and take a part in improving the environment at the same time.
