You might have heard of the new “Cash for Clunkers” bill offering up to $4,500 for purchasing a new car. The motive here is to provoke the demand of new cars and also enhance the overall fuel efficiency.
This can be achieved by promoting the trade of “clunkers” for the more efficient and brand new vehicles. Officially, it is a part of the Consumer Assistance to Recycle and Save (CARS) Act. This Act is recently passed in the House and is in the Senate currently.
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Till today this Act is not finalized or forwarded to the President. Hence, the chances for changes still remain.
Requirements for old Trade-In Vehicles:
There are some requirements in the House Bill stated below:
* Your vehicle must be in the condition of driving.
* The vehicle must be insured to same owner for at least a year prior to trade in.
* Your vehicle must be manufactured in the model year 1984 or later.
* The vehicle must have a combined fuel economy of utmost 18 mpg.
If you are involved in trading in any “Work Truck” which is defined having 8,500 to 10,000 pounds gross vehicle weight rating (GVWR), your vehicle must be a model of year 2001 or later .
Another requirement might be that your vehicle should worth less than $3,500 or $4,500 for quantifying. Otherwise you can sell the vehicle all by yourself rather than opting for the voucher.
You can check out for some cars below:
Nissan Maxima 1995:
This car requires usual oil change and such stuffs. The starter may require replacement along with the power windows. Even after fifteen years of service it can run great. The fuel economy combined may be 21 mpg for this car.
Pontiac Grand Prix 2002
The interior of this car may be cheap but it is mechanically tough and does not require constant repairing. The combined fuel economy is 21 mpg.
Hence, neither of the cars qualifies. It reflects that the most beater cars won’t qualify either. Hondas, VWs and Toyotas can be thought of here. A Honda Civic 1985 model generally gets over 30 miles per gallon. Therefore, this law is for SUV and truck owners mostly. You may qualify for the voucher with an improvement of 1 mpg in case of large trucks and up to 4 mpg for the passenger cars.
It is not necessary that if you qualify you must go for it. You may get fuel cost saving but until and unless you pay in cash you will have monthly auto loan payment. Any new car has high insurance rates. Therefore, you will have to bear collision or comprehensive coverage.
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