This old Mercedes in front of a Carrollwood, Fla., restaurant made a great icon. But it would have to be operational to qualify for the cash-for-clunker program passed by the Senate Thursday.
(Newscom)Photos (1 of 1)
Cash-for-clunker program: Is your car eligible?
By Laurent Belsie | 06.19.09
The US government is poised to give Americans up to $4,500 toward the purchase of a new fuel-efficient car if they trade in their old clunker. The cash-for-clunker program, already popular in Europe, aims to boost car sales while getting the least environmentally friendly vehicles off the road.The program could start as early as July 1. Will your car qualify as a clunker?
The Senate, which passed the measure Thursday, must still reconcile its version to the already passed House bill and the president has to sign it (which he’s indicated he will). But the broad outlines are already known. To be eligible, your clunker must be:
1) Operational.
2) Rated at no more than 18 miles per gallon (m.p.g.) combined city/highway. (Check your car’s rating here.) (Editor’s update: The Environmental Protection Agency updated mileage ratings on July 24, affecting the eligibility of some models. These changes will only affect trade-ins made after that date.)
3) A 1984 model or newer.
4) Worth less than $4,500 – or in some cases, $3,500. (The program just bumps up the trade-in value of your car to one of those amounts; you don’t get extra).
5) Owned by you for at least a year (so you can’t go out and buy one at the junkyard and then turn around and trade it in).
The car or truck you buy or lease must be:
1) New. (It can be foreign or domestic).
2) Rated at 22 m.p.g. (combined) or better. If it’s a car and gets at least 10 m.p.g. better than your old vehicle, you get a $4,500 voucher; otherwise, it’s $3,500. For trucks, it’s more complicated. (Click here for details.)
3) Be worth no more than $45,000.
4) Bought between July 1 and Nov. 1 (but Congress has the option of extending the $1 billion program if it comes up with more money).
That voucher comes on top of any car-dealer incentive. So if your dealer is offering $2,000 off a new car and you qualify for a $4,500 voucher, you’ve just cut the price of that dream ride by $6,500. If you confine your dream to a low-end model, “you can get a brand new car for under $6,000,” says Brian Pasch, CEO of an automotive digital-marketing group in Rumson, N.J.
Interest in the idea is skyrocketing. Mr. Pasch last month set up www.cashforclunkersfacts.com to link potential clunker owners with car dealers. He says 50 dealers a day are linking to his site and on Thursday, it attracted 10,000 unique visitors.
For many Americans, next month may turn out to be a great time to buy a car.
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Comments
2. tony marlas | 06.19.09
Too bad my 8MPG ford F100 doesnt qualify, guess I will keep clunking along and polluting the air! It’s all good, who needs to give the auto industry the 25,000 I would spend after the rebate!
3. Tara | 06.19.09
Fine, call me cynical but I can see the scams from here. A spike in car thefts. Counterfeit pink slips and whatever else the desperate and/or criminal will think of.
4. Lee | 06.19.09
With this economy, everyone is losing their homes and they want us to buy new cars. With What?
5. Sam | 06.20.09
I am not eligble,my 1991 clunker shows 20mpg per the site you link to.
Seems most of the vehicles that will qualify will be trucks and to get the 3,500 credit the new vehicle only needs to get 2mpg more than your trade in.
Seems like a nice way to waste a billion taxpayer dollars.
6. Brian pasch | 06.20.09
Laurent,
Thanks for covering the story that is growing in interested every day. This will be the big car story starting July 1st.
On Friday http://www.cashforclunkersfacts.com had over 70,000 visitors. Consumers have alot of questions so we have been updating our FAQ page.
7. Mike | 06.20.09
Since most people that own old cars can’t afford a brand new car I don’t see how this going to help. I guess it is another way to take my tax dollars and give it to those that don’t need it. When are they going to help out those of us that really need help. I can barely afford food much less a new car.
8. jason | 06.20.09
what will happen to the old parts? will spare parts become cheaper for us americans with old cars? i’ll bet not. so if all these “clunkers” are destroyed parts for my vehicle will be more expensive to boot. and who pays for these vouchers?
9. JJ Sconcialla | 06.21.09
So, if you bought a car that was relatively fuel efficient 8 years ago, your not eligible for this? Sounds more like a reward for buying an inefficient vehicle.
10. jennifer | 06.21.09
they shouldnt make it for a year owned im a single mom whose car broke down bought a car from craiglist maybe had 2 months and now its going out and i cant trade it in for the voucher still stuck trying to find new car
11. Sunshine | 06.22.09
Unfortunately there was no “clunker” for me to trade in ’cause my ‘96 Pontiac Sunfire convertible gets 22/30. The dealer convinced me to keep the old one, since they said I could make more money selling it outright, but I’ve had no takers. Will try Carmax today.
Wonder if there is any financial incentive on taxes or otherwise on my new buy, other than what I’m saving in gas purchases.
12. TomD62 | 06.22.09
What do you bet that as soon as a customer mentions ‘clunker’ that the price on the new car is going to jump by at least $2k. The dealers are going to make big bucks on this, the customer not so much. Right now they can hardly give away cars. I’ve heard of 2 for the list price of 1 deals. The rebate comes through the dealer, not on your taxes, not as a direct payment to the buyer.
I’m keeping my ‘clunker’, at least it’s paid for.
13. pdiddy808 | 06.23.09
Too bad a new car depreciates $4,000 - $8,000 the minute you drive it off the lot! Better off buying a car 2-3 years old from a private party, and selling your “clunker” to someone in need for a bargain!
16. Avid Reader | 06.29.09
Thank you for writing about this program. This will be great for my husband and I, we are now finally able to afford a new (or newer) car and he’ll be able to trade in his Dodge Ram Van (purchased at a dump for $100.00) that gets 8 miles a gallon for something more reliable… …no more getting stranded by the roadside in the 100 + deg Arizona heat.
17. frank | 07.01.09
just think of all the repo vehicles that will be on the market within a year, even cheeper to buy. they get the 4500.00 (dealer) THE CUSTOMER LOSES THE CAR.. dealer resale the car. they earned the 1-2 year interest, then sells to a buyer that can afford it , ( daughter or son 1st car ) you get the depreation lower cost…. sounds like a plan to me
18. Michael | 07.06.09
If the Gov’t really wanted to be fair to all car buyers (and at the same time help the automakers), they should have offered $2,000 to anyone willing to buy a new car.
19. Jahanzeb | 07.09.09
according to the government sites my 2000 Dodge caravan get 19 MPG now, one more than the 18 therefore i do not qualify even though I am planning on purchasing Toyota Prius hybrid which gives twice that per gallon, this law makes no sense. I am trying to reduce my gasoline consumption but have no help from the governement while someone with a truck can get 3500 for cutting their consumption by only 10% or so, where is the logic in this
20. jhenry | 07.16.09
You can buy or trade in both domestic and foreign vehicles so not just the US made cars.
Jhenry
Blogger
http://www.cashforclunkersfacts.info
http://www.cashforclunkersfacts.info
21. Danny | 07.19.09
I see it comming these car dealers that had a Nissan sentra for $10,000 will have it for $14,000 what kind of deal is that?? I can barely aford food for my kids not a $45,000 car!
22. don | 07.21.09
Im like a lot of people. Boat, camper handicapped wheelchair,. If I buy a Prius, will it pull a 3500 pound load on a trailer, or should I leave my wife and her electric wheel chair and my camper at home? I drive a Chrysler T and C. van. With 200,000 miles its still works out better for me than a new tin box.
23. dutch22 | 07.24.09
Lets see I turn in my 1996 ford van that has 74000 miles on it and has been payed for for years. Lets say I get a new van for $15000 along with payments for 7 or 8 years. WOW what a deal,,,,wait a minute I think I’ll pass and drive my old van with no payments for another 10 years. To get clunkers off the road they have to do better than this!!!!!
24. Bill | 07.25.09
So my 2001 Nissan pick up 2 wheel drive comes up on the chart as getting 19 mph, so I don’t qualify? But if the chart showeed 18 instead of 19; I could have bought a new truck and gotten a $3,500 credit? So 1 mph knocks me out? Stupiest thing I ever heard of. The country is run by out of touch morons. And with pick up trucks, you only have to buy a new truck that gets 2 MPH more??? So you get $3,500 for replacing a truck that gets 18 mph with a truck that gets 20 mph, but nothing if you replace 19 mph with 25?
25. Mark | 07.25.09
If your vehicle doesn’t qualify don’t complain. There’s not enough money available to appease everyone who owns and old gas guzzler. Just be glad this is a step in the right direction (for a change).
26. Stan | 07.25.09
Clunker program, what clunker program? - Today We went to buy a car today at Bill Reilly’s Union City, GA Toyota and were met by a nice young salesperson in training and a more experienced one who was training her on the tricks of the trade. We were asked if we perhaps had a clunker to trade so that they could give us a good deal.
We were silent on the subject of trade-ins while attempting to make the best deal possible. When we had finished the painful process of negotiating and were ready to start the paper work, we told them about our clunker. At that point, we were told that the clunker program was over and that they would be happy to evaluate our trade-in exclusive of the clunker program and continue with the sale. We said no thank-you and went next door to Nalley Honda where their very nice salesperson confirmed the clunker program was alive and well at their establishment. However, we actually found our best deal at Allen Vigil Ford in Morrow where they happily gave us $4,500 for our clunker.
Happy Shopping!
27. Shirley | 07.28.09
“Cash for clunkers” is a great start in helping the economy.
Is there a program for people who have auto loans that are upside-down?
I was struggling through my auto loan. In January, I went out on disability for back surgery and was out almost six months, that made my
situation worse. Are there any programs for people who want to keep their cars but are having problems making the payments due to lose of income. I am back to work but now I have to play catch-up. Thank you for any info you can give me.
28. Eyeopener | 07.28.09
from 18 to 22 what kind of a stupid program is this, if the new govt wants to send a good eco-freindly message make the new cars atleast 30+ combined and trucks 25+ mpg.
29. Alice Painter | 07.28.09
The state of WI does not require a car owner to insure their vehichle. Stupid, I know, but true. My daughter drives our old car as she can afford nothing else. It is currently registered and has been for 13 years. She decided to drop the insurance for the summer and ride her bike to work and around to save herself the insurance money and gas money. She would have picked it back up this fall. We all know how ins. and gas can add up. Well, stupid move, I guess because her trying to save a few dollars for the summer is costing her the loss of a $4,500 rebate. I’d like to know how our federal government can require in hindsight what our state government does not. I’m not exactly sure who this program is designed to help, but apparently not cash contientious young people.
30. David Saconn | 07.28.09
Goverment at its best. Wait until the last minute and change their mind. If I did something like this i’d be in JAIL
32. Kaya | 07.29.09
In theory this program sounds great! However, after reading some comments I tend to think the best solution is for everyone to decide that desperateness is uncool and wait until car dealerships are begging us consumers to let them give us cars with no down and no payments for 1 year.
34. Leah | 07.29.09
I’ve read here and in other places that most people who own old cars can’t afford new ones. That is a huge generalization. There are also many people who don’t have the savings for the large down payment needed, but they are able to afford monthly payments and insurance.
35. Eric | 07.29.09
My 15 year old, barely running Saturn doesn’t qualify because back in 1995 it got 22 MPG. I can clearly tell you it no longer gets 22 MPG but do I qualify for a trade-in? NO!!!!
What a worthless piece of legislation. A good idea in theory, but clearly not thought out in practice.
36. James | 07.29.09
This should apply ONLY towards the purchase of an AMERICAN vehicle. That would help OUR economy only (and not some help out all the other countrys) as well as helping out our “big 3″ automakers. Someone SURE put alot of thought into this cash for clunkers thing huh? Sarcasm intended.
37. Sir Creep | 07.30.09
Why isn’t this program lmited to American made vehicles? Stupid is as stupid does.
38. Patrick B. | 07.30.09
People — it’s a CLUNKER bill, not a GAS-GUZZLER bill. The 4-mpg difference is not relevant, though some of you find this poiniant. Washington DC wants our cars to look PRETTY, not be FUEL-EFFICIENT.
40. Bryan | 07.31.09
It’s not a clunkers program, as I have a clunker car that does not qualify(240,000 miles) with lots of broken pieces, but MPG rates too high. It is a trucks/van for cash program.
41. Kaya | 07.31.09
Who is pleased with this program??? I noted one person who said this is a good program.
One thing is for sure…single parents that have to choose between food or ins.
Who need a car to get to work, and have a polluting gas guzzler, are not considered in this deal at all!!! As a matter of fact, single parents have no representation in this government. Or anywhere else for that matter.
I’m going to change that.
43. Linda | 07.31.09
I have two clunkers that don’t qualify and I am devastated…one is a 92 Beretta that supposedly gets 21 MPG but actually gets about 12 MPG, it is falling apart more every day…the other is a 2002 Windstar that gets 18 MPG, but we still owe on it and don’t have a “title in hand”
I thought for once in my life I might actually get to buy a new car…I guess I can just keep on dreaming, no forget it, just makes me depressed.
44. newcarhereicome | 07.31.09
This is a great idea. I wasn’t going to buy a car, but I think I might go ahead and do so. Not everybody is losing their jobs. People make this out to be the worst job situation of all time, but it actually depends on how much you prepared prior to the market and housing upset. Those of us who chose harder and unpopular majors in college may have busted our butts then, but we still have jobs now. Investing in education is investing in yourself. If you take the easy road out initially, you will have the hardest time when things get hard.
What do you call a nerd in 10 years? “Boss”. Or in this case “employed”.
45. Megan | 07.31.09
Well, I just checked the EPA combined mpg for my 94 Chrysler LHS…19 mpg. Guess I won’t be getting that Yaris after all. (And why does the car have to be new? Wouldn’t it be more sustainable and affordable if I could get a used Toyota Prius?)
47. Braxton | 08.02.09
This seems like a scam:How the heck can my 15 yrs old car not qualify as a clunker ?This is ridiculous,one other poster above also wondered how can his 1991 car/truck not qualify as a clunker.The program seems good but my goosh it seems like it’s geared towards those driving trucks as opposed to cars.I quite frankly don’t think it’s as successful as claimed.Where are people getting the money from,no jobs,foreclosure this high & we ain’t hit bottom yet.
48. Nikola | 08.03.09
If you aren’t eligible for the program (and I agree with many of the posters here that the rules are asinine, and should have been focused on gains in efficiency), donate your car to a worthy charity, like Habitat for Humanity. You’ll probably do better that way than trading it in.
more info: http://www.charitynavigator.org/index.cfm/bay/content.view/catid/68/cpid/158.htm “Guide To Donating Your Car”
49. Chris | 08.04.09
So, the government is “giving” us a 4500.00 bribe, using our own tax money to buy a car that we don’t need & can’t pay for, from a company that we already own ? Keep drinking the Kool-Aid, I’ll keep driving my old car.
50. Dusty | 08.05.09
Unfortunately, the info in this article is BAD! The clunker program does NOT include all 1984 cars that meet mileage and other requirements. Manufacture date must be August 1984 or later. After wasting several days trying to participate in the program we learned we didn’t qualify on a technicality. Our Buick was made in February 1984. Typical of government programs. Wonder why we don’t like them?
51. Paul | 08.05.09
So stupid seriosly, I have a 1995 Toyota corolla and it’s prob does 10 mpg cuz it’s in such a bad state and emits a foal smelling black smoke every time I accelerate, and do I get qualified for this ridiculusly stupid program, no cuz the “government” says my car does a combined mpg of 21… WTF! Our govt seriosly did not think this throughly cuz cars do not run like new after 15!! The government acting stupidly again. Why am I not surprised.
52. Ali | 08.06.09
My 1991 Nissan Maxima is not eligible since it is supposed to give 19 MPG according to the manufacturer.
I have been driving it since 2004 and it hasnt given me more than 16 MPG!
I wish there is a way consumers can file disputes with the Preset standards of MPG.
53. Bryan | 08.07.09
I have three more payments to make on our 2003 Chevy Tracker. After that, NO MORE DEBT, that’s it!!!!! I don’t ever want another car payment again. Having been laid off in May of ‘09 and having a work related shoulder injury that same month I’m barely making ends meet with that demon of a car payment. You could not get me to buy a new car regardless of the incentive. Thanks, but no thanks.
54. nht | 08.07.09
Wow! Most of you have the same thoughts as mine! This program has been created by “brainers” in our government. And, I do not know that they are thinking. We need money for much-more-essential stuff then a new car at this point. Where the two plus B. dollars come from? From the government officials’ own pockets?
How much a car consumses gas cannot be based on its year and model. The exact same year and model cars consume gas differently. Don’t they know that? No?
You have to own the car more than a year to be eligible! What a joke? Who made up that “one year” period? I just sold a 98 Ford Windstar, 6 months ago, to my friend who is now not eligible. As long as you buy a car before the program comes out, then you should be eligible.
Oh! What is their math level? Highschool? Lowschool? The 98 Windstar ($1483 http://www.edmunds.com) runs around 20000 miles/year at 18 MPG. If it could be traded in for a 2009 Ford Escape ($20,435 http://www.edmunds.com).
With gas at $2.5/gallon and $2000 discount from the dealer, my friends can save around $780/year for using less gas, and spends $16950 to trade the new Escape!!! He just bought the van for $1500, does he have $16950 in pocket to trade the new Escape? Or he has to apply for a loan and pay interest?
Hey, no rocket science here, he will definitely spend extra 780 dollars/year and drive the old van and save money!
55. NanaBanana | 08.08.09
I bought an Infiniti J30 in 1994. Great car but gave it to my son in 2005. (titled in his name) as he was recently a Masters Grad and knee deep in tuition fees. I bought me a pre-owned Buick (2002) Now, he needs a larger car for work and said he would give me the J30 back for the clunker program so I can buy “me” a new car. I would give him the 2002 Buick. Well, even though the J30 has been in the family for 15 years, the clunker program said I had to OWN it for one year. Does in the family ownership count? Qualify? If he titles it back to me (his Mama) does this mean I have had to be titled for one year? The friggin car (clunker) has been with us 15 years. How complicated is this? I want to buy a Honda Civic for me…NEW…So darn confusing…..Should I call Barack and ask him? (-:
56. Jordan | 08.08.09
Find out if your ‘clunker’ qualifies wit this sortable table: http://tinyurl.com/clunkerslist
57. Karyn | 08.08.09
After a week of back and forth with the dealership and AFTER we’ve already signed the loan paperwork we have been told that our Clunker does not qualify because it was manufactured in March of 1984; and therefore is over 25 years old now. Would have been nice to know this BEFORE all the paperwork and waste of time all week long.
58. aviva gabriel | 08.08.09
For all those who were disqualified from the “spirit” of the Cash for Clunkers program on a technicality, or can’t afford to take advantage of this offer (due to serious flaws in program’s concept)…
…Try to console yourself with this: Even if you personally don’t benefit, you may benefit from the slightly-improved economy that results from wealthier folks who qualify and CAN afford to participate.
Who knows? Maybe wealthier folks’ good fortune will “trickle down” to all of us poor suckers who cannot afford to buy a new car, or find their automobile inaccurately rated by idealistic statistics and pie-in-the-sky mileage charts.
59. Nat | 08.09.09
All these running cars will be destroyed. Balance what little help this is to the environment against the millions of very poor who would be grateful for them.
60. Whining | 08.13.09
Yeah, my car didn’t qualify and it is close to clunker. Let’s see what Bush offered to stimulate the economy while wasting the all the taxpayers money:
NOTHING.
61. Robyn Roberts | 08.22.09
I put together some good resources, if you’re interested in the Cash for Clunkers program:
http://www.autostimulusplan.org
Chart of program requirements
Latest News Updates
List of Top 10 Fuel-Efficient Vehicles, as rated by the EPA
Checklist for buying a new car
List of Pros and Cons for the Individual
Sierra Club Calculator (See what car is best for you)
Kelley Blue Book Calculator (See how much your clunker is worth)
List of other dealer incentives with links
Clunker Humor (just for laughs)
62. Pat | 08.30.09
Ummm bill #15. I’m 15 years old, it’s mpg not mph. If ur vehicle only got 19 mph then ur riding like a lawn mower or somethin
63. trailer | 09.07.09
are you aloud to give them your old trailer and get money to buy a new one? or does it have to be a car for a car?
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1. Andrea | 06.19.09
Too bad “clunker” isn’t defined by how many cracks you have on your winshield or how many things flat out just don’t work anymore.