The government's new Cash for Clunkers program has drawn much interest, and not just from buyers. According to Transportation Secretary Ray LaHood, about 80% of new-car dealers have signed up for the program.
While the rebates you can get in the Cash for Clunkers program is definitely tempting ($3,500 or $4,500, depending on qualifications of the old and new vehicles), obviously if your trade-in (or resale) value is greater than the rebate amount, you're losing out on the deal. That's where the Clunkers part comes from; it's obviously better if your car has little trade-in or resale value.
Of course, Cash for Clunkers program doesn't want a complete lemon. The car has to be drivable. And to avoid people taking advantage of the program, the registered owner of the vehicle must have owned the car for at least a year.
How much of a rebate will you get with the Cash for Clunkers program? It depends, as I said, on the old and new vehicles, particularly the MPG of the old car vs. the new car. Full rules can be found at the government's website at http://www.cars.gov/.
Some rules that definitely apply: the old vehicle must be 25 years or less in age. It must get 18 MPG or less, and only new vehicles qualify (lease or buy).
Did you know, also, that the trade-in will be scrapped? Yep, the Cash for Clunkers program requires the old vehicle to be scrapped, because it is primarily a "green" program, designed to reduce CO2 emissions. No way do they want the old vehicles to re-enter the vehicle pool.
Additionally, you will get the scrap value of the vehicle, in addition to the rebate. Yes, that's in addition to the rebate, though you wouldn't expect much, right?
Cash for Clunkers will end Nov. 1st or when the subsidy funds ($1 billion) are used up, whichever comes first. Congress will decide later this year whether to approve legislation extending the program into 2010.
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