August 11th, 2009

The Cash for Clunkers program is a strategic new incentive program, that Congress passed as part of Bill H.R. 2463. This stimulus plan allows for used car owners to trade in their current clunkers at an automobile dealer in exchange for a voucher savings towards a new more fuel-efficient vehicle. The incentive encourages individuals to get rid of their old cars in favor of more environmentally conscious vehicles, while also helping to boost car sales. The plan aims to help not just the environment, but also the consumer spending and the automotive industry all at once. Many car companies are also adding in other deals to sweeten the pot, such as extra savings that can be combined with the cash for clunkers voucher.

To qualify for the Cash for Clunkers stimulus voucher, it’s important to follow all requirements and rules. Your car must be under 25 years of age and drivable when you bring it to the dealership. The automobile also must be registered and insured under your name for at least the past year. Proof of registration and insurance will be necessary, and you will also need to be sure the title has no liens against it. If the title has liens or other issues, it’s important to clear those issues up prior to heading to the dealership. The clunker is defined as a car that gets 18 miles per gallon fuel efficiency. Customers will qualify for a voucher for $3,500 to $4,500 which will be applied to the purchase or lease of a new car. In the case of a leased vehicle, a five year lease is required.

To participate and receive the cash for clunkers voucher, all a customer needs to do is bring the appropriate information to the dealer such as the insurance, registration and title. Once the customer has signed off on the deal for the purchase or lease of their new vehicle, the dealer takes it from there. Paperwork is submitted to the appropriate agency by the dealer. The National Highway Traffic Safety Administration (NHTSA) takes over from there, making sure all requirements have been properly met. Then, in about ten days, a finance credit voucher is sent to the dealership an applied towards the customer’s recent lease or purchase.

As you can see, Cash for Clunkers offers a pretty simple, yet nice stimulus program for both consumers and the economy. It may be just the boost that struggling automotive companies need to revive their businesses, and bring back jobs as well. And with just a few simple steps and rules to adhere to, new car buyers will receive a nice bit of savings off their new car, while becoming more environmentally-conscious as well!

The new Cash for Clunkers program will last from July 2009 until November 2009. For more information also refer to Cash for Clunkers program.

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