Wednesday, June 17, 2009

Cash for Clunkers Senate Bill

Hopefully you don't have your mouth full right now because this bill is certainly going to fill it. I'll try and summarize the main points, but you can read the legal mumbo jumbo here.

The Cash For Clunkers Senate Bill was designed to help people switch to more fuel efficient automobiles by giving them vouchers to help offset the cost. It really isn't as complicated as it looks there, but here are the basics:

1. $3,500 voucher if the new fuel efficient automobile is a passenger automobile and the combined fuel economy value of car is at least 4 miles per gallon higher than the combined fuel economy value of the eligible trade-in vehicle. It must be only 2 MPG better for eligible trucks.

2. You can get $4,500 if your trade in car gets at least 10 MPG less than the new economy fuel vehicle. 5 MPG less if you are trading in a truck.

3. The program lasts from March 30, 2009 until....

"the day that is 1 year after the date on which the regulations promulgated under subsection are implemented."

So...basically you can offset the purchase of a new "eco car" by up to $4500 if you trade in a car with fuel efficiency of 5-10 MPG less than the new vehicle you purchase at participating dealerships. Let's just say that your old car probably just took a mega Solo Slim drop in resale value friends.

No comments: