But there is always the other side of the coin and this program is no exception. The Cash for Clunkers program too has its shortcomings. This improper execution of the program by the government often resulted in overloading and even crashing of the government computers. The information that was conveyed among the consumers and the car dealers were insufficient leading to their frustration. In addition to this, the removal of Junkers from the market led to a loss of business to some mechanics adding to their sufferings. The mechanic shop such as a transmission-rebuilding shop has been shut for almost past two weeks because people preferred to buy or lease a new car over rebuilding their old cars.

All these side effects have added fuel to the discussions, whether the government should bring another CARS program seeing its initial success or not. There is an urgent need of making the reward as a function based on comparison of the efficiencies between new cars and the clunkers. Although the original bill was very strict in terms of mileage requirements but it did not go well and failed to get through the Congress. But this time we should hope to get miles per gallon requirements to be even stricter so that more savings of m.p.g. fetch us better rewards.

We expect that the next edition of the CARS program will encourage more creative provisions for the people working in automobile industry such as conversion of diesel cars into engines run on vegetable oil. This will equip the consumers with an incentive in addition to better efficiency.

The automobile industry has received a much needed boost with such a large amount of cash flowing in as a result of the Cash for Clunkers program. These initiatives in the automobile industry must continue with stricter mileage per gallon and relaxed requirements.

Although it appears as though embroidered to help consumers, the program was aimed for the advantage of car dealers. It is true that a short term success was achieved, however nothing can be decided till the car firms release their profit report.

The good news is that, this program might be renewed soon with additional benefits, if the government feels its worth spending. Lets hope for the best and await the arrival of CARS.

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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