Cash For Clunkers Stimulus – Facts and Figures
Posted by Cash for Clunkers on November 11th, 2009The cash for clunkers stimulus program is believed to work wonders on the environment and the declining car industry. Following the global recession, of which the United States is one that is most severely affected, businesses started to slow down. One that suffered greatly is the car industry.
In an attempt to help the industry recover its losses and perhaps even move on, the US Congress approved the bill of cash for clunkers program in late June this year. Signed by US President Barrack Obama, the bill which is named Consumer Assistance To Recyle and Save Program or CARS, provides for an incentive to anyone who would consider trading in his or her current vehicle for a new environment-friendly car. This program is seen to boost the sales of cars and help the environment at the same time.
Specifically, the program gives you a $3,500 to $4,500 discount coupon when you trade in your old clunker car for a more fuel-efficient vehicle. This means that you cannot use the coupon any other way, but only for where it is intended to be used. Your current car has to have a fuel efficiency of less than 18 miles per gallon in order to qualify. If you purchase a car with 4 miles per gallon fuel enhancement, you may be entitled to a $3,500 coupon, but if you get a car with 10 miles per gallon fuel enhancement, you may be given the maximum $4,500.00 coupon.
This cash for clunkers stimulus is open to car owners whose cars are not older than 25 years old, and as already mentioned, must have fuel efficiency of 18 miles per gallon at most. In the case of large cargo vans, pick up trucks and the like, fuel efficiency requirement should be around 15 miles per gallon.
There is no need to enroll in the program as the authorized car dealers themselves will automatically credit the coupon against the new purchase or lease, which ultimately reduces the total cost of the new car. The National Highway Traffic Safety Administration is tasked to issue the credit as soon as the dealer submits the essential documents. Ideally, the credit is processed and transferred within 10 days, assuming all requirements are in order.
Before you approach a car dealer and avail yourself of this program, make sure that you have all the essential requirements to present. Among those that you must be prepared to bring are the recent registration documents and insurance policies of your car. You also have to prove that the car is free of liens; if it’s not, it’s necessary that you clear them out first or you may only be frustrated when you will be turned down of the offer. Once you qualify, the car dealer itself will take care of all the paperwork, including sending your documents over to the NHTSA and all that.
Well, it certainly looks like this cash for clunkers stimulus program is the solution to the environment issues and economic problems faced by the car industry today.
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