Can you get cash for your old car?

July 28, 2009 10:34:24 AM PDT
What if you could get a government bail out worth up to $4500 dollars, if you dump the old family car and buy a new, car, S-U-V, or a van that gets better miles per gallon? That's the goal of the Obama Administration plan popularly called "Cash for Clunkers".

Congress secured $1 billion for the cash voucher program designed to get gas-guzzling cars and trucks off the nation's roadways and boost the ailing auto industry by giving consumers incentive to buy.

Wilson Kingsly a used car customer from New Jersey said, " That's what we're looking for, just something, some way to save money."

Dealers like Town Motors Audi in Englewood, New Jersey like the proposal. Any new, fuel efficient car would qualify for the program as long as it's under $45,000.

"I think this is the push for people on the fence," Elgin Swift of Town Motors Audi said. "People contemplating this is the incentive to stop thinking about it."

To trade in an existing car, in the "Cash for Clunkers" program your old car has to get:

  • 18 mpg or less.
  • Be built in 1984, or after.
  • Be registered in the purchaser's name has to be owned for at least 1 year.

    If the new car just 4 more miles per gallon than the trade-in, it means $35-hundred dollars for the buyer. If the car gets 10 miles per gallon, that translates to $45-hundred for the buyer.

    There are requirements for new cars:

  • They have to cost LESS than $45-thousand dollars.
  • They have to get at least 22-mpg.

    Used car dealers hope the "Cash for Clunkers" program will move inventory off stalled lots.

    "Sales, more sales, more business," said Ed Ponzi of Empire Auto Sales. "Most of the cars today do get better mileage than those older clunkers."

    The "Cash for Clunkers" program has already run into a speed bump in Washington. Opponents think the billion dollar program is not enough. Some analysts believe it'll take at least $4 Billion to make the program successful. Some Democrats criticize the program for not going far enough. Toward improving fuel efficiency. Some fear purchaser's will opt for gas guzzling SUV's they' ve been trying to get off the roads.

    Web produced by Ilene Rosen



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