Cash For Clunkers Information

July 24th, 2009 Ryan Jones

I’m hearing a lot of talk about the Government’s new Cash for Clunkers program right now. Almost every radio show is talking about it and car dealers are hurrying to educate customers about it, but listening to the radio today I heard tons of confusion about the program. The radio hosts didn’t know the specifics, and some of the callers had misguided information.

If you’re trying to find out about the cash for clunkers program, there’s a great flowchart out there that can help you decide.

Basically, cash for clunkers is a rebate program. It’s money taken off the sticker price of a car and given directly to the car dealer when you purchase a new car.

Here’s what you need to qualify:

Your car must be:

• less than 25 years old
• Have a trade-in value less than $4,500
• Insured and registered for the last year
• Get a combined 18mpg or less

You can check your MPG rating at cars.gov

If your car meets all of these qualifications, it’s eligible to trade in under the program. Then, your rebate amount depends upon the new car you are purchasing. If your new car gets 22mpg or more, you will be elgible for a $3,500 rebate applied to your new car. As a bonus, if the new car gets 10 miles per gallon more than the one you’re trading in, you’ll get a $4,500 rebate.

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