The Clunker Bill

I am reading this email from Benjamin Bankes a little late since I bought a new car last week. I ended up with a new Escape. I really do like it and it does get better gas millage than my old one. My husband is taking the old one back and forth to work since it was not worth trading it in. Back to the Clunker Bill. This bill allows you to trade your old car for a more fuel efficient car and receive a discount for $4,500.

There are rules of course.

• Your vehicle must be less than 25 years old on the trade-in date
• Only purchase or lease of new vehicles qualify
• Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
• Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
• You don't need a voucher, dealers will apply a credit at purchase
• Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
• The vehicle that you are trading in is required to be destroyed. Therefore, the value you negotiate with the dealer for your trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to you and estimate of the scrap value of your trade-in vehicle.

While the CARS Act makes transactions on and after July 1 potentially eligible for credits under the CARS program, interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued. Issuance will occur around July 24. CARS.gov

So if you are looking to buy a new car and need to get rid of the old clunker, check out CARS.gov before November when the deal ends or when the money runs out.