Cash For Clunkers Bill Details

Cash For Clunkers Bill Details, The House and Senate have both approved a “Cash for Clunkers” program, which is also known as Car Allowance Rebate System (CARS). CARS is intended to stimulate auto sales by offering consumers the opportunity to trade their old clunker for a $3,500 to $4,500 voucher to be used toward a new car purchase. President Obama is expected to sign this bill into law soon.
Car Allowance Rebate System (CARS) – Cash for Clunkers Bill

The purpose of the bill is to remove older, inefficient cars from the road, and stimulate the auto industry, which has fallen on hard times. A similar program recently occurred in Germany and was very successful.

Requirements for trade-in vehicle. To be eligible for a voucher, the car must be in running order and meet the following criteria:

* Car must be at least 10 years old and have been made after 1984.
* Trade-in must get 18 mpg or less in combined highway and city driving.
* Must be registered and insured in purchaser’s name for 1 year prior to trade-in.

Requirements or new vehicle: New vehicles that qualify for the Cash for Clunkers bill include Passenger cars, Small light duty trucks (under 6,000 lbs.), Large light duty trucks (6,000 lbs. – 8,500 lbs.), and Commercial vehicles (8,500 – 10,000 lbs.).

To qualify for a $3,500 voucher:

* Passenger vehicles must average 22 mpg, improve at least 4 mpg over trade-in, and cost less than $45,000.
* Small light duty trucks must improve 2 mpg over trade-in.
* Large light duty trucks must improve 1 mpg over trade-in.

To qualify for a $4,500 voucher:

* Passenger vehicles must improve 10 mpg over trade-in.
* Small light duty trucks must improve 5 mpg over trade-in.
* Large light duty trucks must improve 2 mpg over trade-in.

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Cash For Clunkers Bill Details