Cash for Clunkers: Obamas plan to get new car sells up
http://www.abcactionnews.com/content...flxhlQgMg.cspx
The "Cash for Clunkers" program is finally becoming law. Once President Obama signs it, thousands of car owners may be eligible for a voucher for as much as $4500, that they can use toward the purchase of a new car.
It's potentially a great deal, if you qualify. Unfortunately, theres a good chance your old car won't.
Who is Eligible
Own a beat up minivan? How about a pickup truck with a rusted bed? Or a truck that has sat in your yard for years? If so, you -- like Teresa Galloway -- may be wondering if your vehicle qualifies for the new cash for clunkers program.
Teresa, who we found filling up her old Chevy at a Shell station, told me "it all depends how much they'll give for an old car."
Teresa tells me she'd love to get $3,500 or $4,500 for her 1994 Chevy Corsica, but says if she can use it only to buy a new car, it won't help her.
"For a used car, maybe. Not a new car, no," she said. Unfortunately for Teresa, it doesn't apply to used cars...as the goal is to boost new car sales.
What Qualifies, What Doesn't
The ideal vehicles the government considers clunkers and would like to give you cash to get rid of: the millions of mid 90's SUV's still on the road...along with fulll size pickup trucks from the 80's and 90s, many of which get only 13 mpg.
You can receive a voucher for $4,500 if your new car gets 10 miles more per gallon than your old car. If your new car gets between 2 and 9 miles per gallon more, then you qualify for a $3,500 voucher.
The key provision: The old car must get 18 mpg or less, according to the EPA. Click here to find out your car's average gas mileage.
* For that reason, most small and midsized cars won't qualify. No Ford Escorts, Chevy Cavaliers, Dodge Neons, Toyota Corollas, or other small cars commonly considered "clunkers" need apply: their EPA mileage numbers are too high.
* In addition, it must be a 1984 model or newer, which prevents junking "classics," like early Mustangs and Camaros.
* One other caveat: The car must have been insured for the past year, which prevents scavengers from running to salvage lots and turning in junkyard cars for money.
As for Teresa, it turns out the EPA says her Corsica gets 20 miles per gallon, so it doesn't qualify.
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Originally Posted by Corolla_TC
