Cash for Clunkers Economic Stimulus Program
You’ve probably been hearing about the Cash for Clunkers Economic Stimulus Program. Patterson Auto Group wants to provide you with facts. Please check back often because the government is still finalizing details on how this program will be fully implemented and executed.
Updated 7/14/09
What is Cash for Clunkers Economic Stimulus Program?
It is a voluntary program that permits consumers to trade in older, less efficient vehicles in exchange for a voucher that can be used toward the purchase of a new car or truck. Vouchers are worth either $3500 or $4500 depending on the fuel economy of the vehicle that is turned in and new vehicle that is acquired.
When does the program start and end?
The bill was signed into law on June 24, 2009. Currently the NHTSA is developing the regulations for the program. The target for the NHTSA to release the details is July 24, 2009. The program ends November 1, 2009 or when funds are exhausted, whichever comes first. The CARS act makes transactions on and after July 1, 2009 potentially eligible for credits under the program. More details on the program will be release around July 24, 2009
How do I determine if my trade in is eligible?
Here are the details we know so far:
- Must be in drivable condition
- Must have been continuously insured and registered to the same owner(s) for at least one year preceding the trade-in.
- Manufactured less than 25 years since the date of the trade-in.
- Must have combined (Highway and City) fuel economy of 18 mpg or less.
- Not more than one voucher may be issued for the joint registered owners of a single eligible trade-in vehicle.
*Work trucks (i.e., very large pickup trucks and cargo vans) have different requirements
What New Vehicles are eligible?
Eligible New Vehicles
- Cars must have combined highway and city fuel economy of at least 22 mpg.
- Small light trucks must have combined fuel economy of at least 15 mpg.
- Vehicle must have suggested retail price of $45,000 or less.
How do I find out the combined city/highway fuel economy rating of my trade-in vehicle?
Go to: www.fueleconomy.gov and click on the model year of your vehicle, the make, and then the model. Under the words "ESTIMATED NEW EPA MPG" in the red banner, there is a red number with the word "COMBINED" under it. That is the new combined city/highway fuel economy for your vehicle. You may then enter the make, model, and model year of a new vehicle you may want to buy and see its combined MPG for comparison.
Can I trade in for a used vehicle rather than a new vehicle?
Currently, the information does not indicate used vehicles will be eligible for the voucher program.
What are the requirements for a $4500 Voucher?
- New passenger car must achieve a combined (highway/city) fuel economy improvement of at least 10 mpg (minimum of 22 mpg) above the trade-in.
- New Light Duty Trucks must achieve a combined (highway/city) fuel economy improvement of at least 5 mpg (minimum of 18 mpg) above the trade-in.
- New Large Light Duty Truck (6,000-8,500 lbs GVW) must achieve a combined (highway/city) fuel economy improvement of at least 5 mpg (minimum of 15 mpg) above the trade in.
- Category 3 Work Trucks (8500-10000 lbs GVW). $4500 voucher not available.
What are the requirements for a $3500 voucher?
- New passenger car must achieve a combined (highway/city) fuel economy improvement of at least 4 mpg (minimum of 22 mpg) above the trade-in.
- New Light Duty Trucks must achieve a combined (highway/city) fuel economy improvement of at least 2 mpg (minimum of 18 mpg) above the trade-in.
- New Large Light Duty Truck (6,000-8,500 lbs GVW) must achieve a combined (highway/city) fuel economy improvement of at least 1 mpg (minimum of 15 mpg) above the trade in.
- Category 3 Work Trucks (8500-10000 lbs GVW) have no fuel economy requirement. Vehicle must be model year 2001 or older.
In addition to the credit, will I get the full value of my trade-in vehicle?
No. The law requires your trade-in vehicle to be destroyed. Therefore, the value you negotiate with the dealer for your trade-in vehicle is not likely to exceed its scrap value. The law requires the dealer to disclose to you an estimate of the scrap value of your trade-in vehicle.
Does the program apply if I want to lease a vehicle, or must I purchase a vehicle?
Under the program, you may purchase a new vehicle or lease a new vehicle, provided the lease period for the new vehicle is at least five years.
I don’t drive an American car but I would like to trade in my old car for a newer, more fuel efficient one. Is this program only for American cars?
No. You may trade in or buy a domestic or a foreign vehicle.
Do I need to get a voucher or sign up for this program?
No. You do not need a voucher and you are not required to sign up or enroll in this program. Participating new car dealers will apply a credit, reducing the price you pay at the time of your purchase or lease, provided the vehicle you buy or lease and the vehicle you trade in meet the program requirements. The dealer will then obtain reimbursement from the government.
Where can I find more information?
Patterson Auto Group is keeping up with the latest information. Please call 940-761-3402 or email cashforclunkers@pattersonauto.com for details. Please be careful because there are websites popping up that are trying to get you to ‘register’ so they can sell your name as a lead.
*Information subject to change. Please check often for updated information or call Patterson Auto Group at 940-761-3402.
