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Take Advantage of the Obama Program For Cars Also Known As Cash For Clunkers

Author: | Posted in Money-Finance No comments

Many people are talking about the initiative of the US government to give you money for your junk car, especially since it was announced that the figure could reach 4,500 dollars.

All true, but do not be naive and think that now anyone can show up with a rickety old car and simply turn it in for cash. Like with any government program there are rules and restrictions with which one must comply.

Cash Allowance Rebate System

The official name of the program is the Cash Allowance Rebate System. The program’s goal is to help the automotive industry and to promote the purchase of new cars while at the same time, take out of circulation cars with high fuel consumption and replace them with more efficient ones.

Not a Cash Rebate

The most important thing to know is that the money will not be paid in cash for you to spend or invest wherever you wish. The program is aimed to support the auto industry, and what happens is that people receive a voucher to be used toward the purchase of a new car.

Not in Excess Value of Vehicle

This money will not be in addition to the value of the car; rather, it is the only thing that you will receive when you deliver your old vehicle; so the program only makes sense for people who have cars whose value does not exceed $ 4,500.

Certain Conditions Apply

There are certain conditions that apply so it’s important to pay attention to the details.  First, the initial voucher is for $ 3,500.  If the vehicle you turned it has a fuel consumption of 18 mpg or less you may now use your voucher towards the purchase of a new vehicle that has a fuel consumption of 22 mpg, minimum.

Fuel Consumption Important

If the new car can improve mileage by 10 mpg  then the figure would rise to the promised $ 4,500. For those who make the change with a SUV, pickup or minivan, the same conditions apply. For more information visit the governments website for fuel economy.

Age of Car

The age of the car is another important factor. The old car can not be more than 25 years old and the price of the new car to be purchased may not exceed $ 45,000. You can check all rules in Cash for Clunkers.

Limited Time

This program does not run indefinitely. Experts estimate that the period of operation will allow between 70.000 to 200.000 changes.  This is a nice opportunity for those that are currently driving an old car but wish to purchase a new vehicle.

Must Qualify

In order to qualify you must be able to afford the payment associated with your purchase but with $4500 down you will have some help in getting a lower payment. Your credit should be as good as it would be to make any new car purchase. After all, you want the best rate with the good down payment you are providing.

Participating Dealers

There are approximately 16,000 new car dealers in the United States that are participating in this program. Check on the Cash for Clunkers website for full details.