Cash for Clunkers

Posted by Diane H. Blackwelder, CFP on 29 July 2009 | 0 Comments

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If you have been thinking about trading in your old clunker, now just might be the right time.  The government is subsidizing the trade-in value of gas-guzzling cars, vans and trucks.  To simply the requirements, here's the general guidelines of the CAR Allowance Rebate System (CARS):

  1. The combined city/highway mileage of your "clunker" generally has to be 18 miles per gallon or less.
  2. The car has to be "drivable", continuously insured for not less than 1 year, and less than 25 years old.
  3. Only new cars with a combined fuel economy of 22 miles per gallon or better can be purchased or leased.

If the vehicle is qualified, consumers will be able to take advantage of this program and receive a $3,500 or $4,500 discount from the car dealer when they trade in their old vehicle and purchase or lease a new one. 

So, if your driving a 1995 Volvo worth $1,000 bucks, your trade-in value would essentially increase to either $3,500 or $4,500.

click here to determine if your gas-guzzler qualifies and to learn more about the CARS program. 


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