Cash for Clunkers Program – is the devil in the details?
In recent weeks both the House and Senate approved the new “green” program commonly referred to as “Cash for Clunkers”, with President Obama expected to sign the measure the week of June 22, with a start date of July 2009.
The program, which would initially provide $1 billion in tax-free vouchers to automobile dealers who participate in the new program, has a two-fold aim; first to help remove gas guzzling vehicles from the roads, and second to deliver a boost to new vehicle sales for the auto industry. Vouchers, worth $3,500 or $4,500, will be given to dealers when consumers trade in an old vehicle for a new vehicle with higher fuel efficiency.
However, consumers should familiarize themselves with the details before driving to your local dealer lot. Perhaps the biggest surprise may lie in the fact that the “old” vehicle you trade in will be destroyed and hence will garner no trade value from the dealer.
Please follow this link, http://cars.gov/, to learn more details. The website is sponsored by the National Highway Traffic Safety Administration, who will oversee the program for the government. As more information becomes available we will pass it along.
Feel free to call our office regarding this or any other topic.