Cash for Clunkers ends Friday. You've probably seen the commercials advertising the U.S. Government "Cash for Clunkers" program. Consumers who trade in cars and trucks with crappy fuel economy will receive a $3,500 or $4,500 credit towards the purchase or lease of a new, fuel efficient car. On Tuesday I spoke to a few car sales managers in the Folsom lake area and got their input on how the program is working out so far. "Good" was the term I heard most frequently. The sales manager at Folsom Lake Toyota didn't want to say more than that, but his salesmen were obviously happy with the program. "Its not just the Prius!" was what one salesman found himself explaining over and over again. Any car with a 22 mpg or better rating qualifies, which for Toyota includes their 2.4 and 3.4 liter engines. As of noon on Tuesday, they had taken in 81 clunkers, almost all of them valued at $4,500. It was at Folsom Lake Toyota that the real expediency of the situation was explained to me. "When Canada had a similar program, they gave out $2 billion worth of vouchers in NINE DAYS!" $1 billion has been authorized for the US program from July through November 2009, enough for about 250,000 clunkers. Every dealer I spoke to expressed concern that the money would run out and they would be left holding clunkers with no value. Some had calculated that each state would be able to reclaim 5,000 cars. Everyone was eager to find some tally of the total clunker count so far, but the National Highway Transportation Safety Administration (NHTSA) hasn't published that number. --------------------------------- The Basics: Old cars traded in are good for either a $3,500 or $4,500 credit. The actual value of the car isn't important, if the car is worth more than $4,500 in trade, it shouldn't be used for the cash for clunkers program. Must have combined (highway and city) fuel economy of 18 miles per gallon or worse. It doesn't matter what the actual fuel economy of your particular car is, what is important is the MPG rating that your car achieved when it was sold new. That information is available on the Official Tables of Gas Mileage: http://www.fueleconomy.gov/ For example, these don't qualify: 2003 Saturn Vue (21 mpg) 1999 Hyundai Elantra (22 mpg) 1998 Acura Integra (24 mpg) 1986 Volkswagen Jetta (22 mpg) these qualify: 1998 Lincoln Town car (18 mpg) 1998 Lincoln Navigator (12 mpg) 1990 Hyundai Sonata (18 mpg) 2003 Mercedes SL500 (16 mpg) 2003 Honda Pilot (17 mpg) 2003 Pontiac Aztek (18 mpg) New car must have a combined fuel economy of 22 mpg or better. If the new vehicle is an SUV, the fuel economy can be a little worse, at least 18 mpg. If the new vehicle has a fuel economy which is 10 miles per gallon better than the old, the voucher will be for $4,500. The miles per gallon figures are usually listed on the new car window's sticker. car > car 4 mpg improvement get $3,500 - 10 mpg get $4,500 car > suv 2 mpg improvement get $3,500 - 5 mpg get $4,500 suv > car 4 mpg improvement get $3,500 - 10 mpg get $4,500 suv > suv 2 mpg improvement get $3,500 - 5 mpg get $4,500 (Also category 2 and category 3 trucks can qualify for $3,500 if they are replacing a truck which is 8-25 years old or $4,500 if they aren't work trucks and they are rated at 2 more miles per gallon.) ------------------------------------------- More Information: The CARS Act specifies that not more than one credit may be issued to a single person, not more than one credit may be issued for joint registered owners of a single eligible trade-in vehicle, and that only one credit under this program may be applied toward the purchase or lease of any single new vehicle. Only good on new cars costing less than $45,000. Sorry Diddy. Consumers can combine this with other State and Federal incentives, such as the hybrid vehicle credit. The engine and drive train of the used car must be destroyed and cannot be reused in another car. The glass and other parts can be re-used. Can be applied to new car purchases and leases of at least five years. Only purchase or lease of new vehicles qualify Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements) Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in You don't need a voucher, dealers will apply a credit at purchase and will take responsibility for verifying your clunker. Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first. The program requires the scrapping of your eligible trade-in vehicle, and that the dealer discloses to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate. Car Allowance Rebate System (CARS) also Cash 4 Clunkers (C4C), or possibly the Consumer Assistance to Recycle and Save Act of 2009 (CARS). Rae Tyson spokesman for the NHTSA was quoted by the New York Times as saying, "We’ve just created an entire program in 30 days". Dealers must be authorized from the federal government. Total American auto sales are expected to be 9.5 million in 2009. recyclers and salvage auctions must certify that they will follow rules for disposing of clunkers. The price for a new Hyundai Elantra, which with the $4,500 rebate and existing company incentives can be bought for $8,620. car manufactures like Chrysler and Toyota have offered to match the government paid vouchers. (Chrysler, Jeep or Dodge vehicle ) Nissan autos Versa, Cube, Altima and maybe more http://www.nissanusa.com/car-allowance-rebate/index.html?intcmp=Cash_for_Clunkers.Promo.Homepage.Home.P2 Your vehicle must be less than 25 years old on the trade-in date (1984 or newer). The old car must have been owned and insured continuously for the last year, so you cannot buy an old car off of Craigslist to cash in. The benefit to the USA: Even a small decrease in the total fuel needed to drive America's fleet of cars could have a huge impact on the price of gasoline. The supply of gasoline is very, very stable, and the demand is extremely inelastic. The combination of these two factors mean that when demand goes up a little, as it did in the summer of 2008, the price goes up like crazy. Even at $4.60 per gallon, consumers simply don't have an easy option except to pay the new price. By the end of the year, with the economy withering, demand for fuel dropped, kicking the legs out from under the price of gasoline. The cash for clunkers program will help keep the price of gas low by getting up to 250,000 gas guzzlers off of the road. It will also be good for state government revenues, for example California collects an 11% tax on new cars. Will Requirements ---- What to bring to the Dealer to qualify: 1 Year Proof of Insurance. If your insurance card does not cover the entire year preceding the trade in, you will need other proof of insurance. Contact your insurance company to get evidence of 1 year worth of insurance. The form must include, at a minimum, the insurance company, policy number, VIN, start and end date of insurance (showing at least 1 year). Proof of Registration going back at least 1 year. “Clear” title. This means the title must be free of any liens or other encumbrances. If you have liens, you need to get these cleared before going to the dealer. This may include evidence on the face of the title showing no lien; that the title has been cleared (signed and stamped accordingly), or with an attached lien release from the lien holder. I was unable to determine if a "salvage" title would qualify. I'm guessing that it would, as the law specifies "clear" title, not "clean" title. The vehicle manufacturer date (found on the driver’s door or door jamb) is less than 25 years from the date you trade it in. If you do not have any of the above items in your possession, you may do the following: Call your insurance company and have them provide evidence of 1 year’s worth of insurance on the trade-in vehicle. Make sure it includes the minimum requirements noted above. Contact your DMV for copies of prior registration certificates to show proof of ownership of the trade-in vehicle for at least the past year. The name on the registration must be the same as the name on the title and the same as the purchaser of the new vehicle. Clear your title by paying-off any loans outstanding and receive either a newly issued title from the DMV that is free of all liens and other encumbrances, or have the lien release document from the lien holder (signed and stamped accordingly), or your title signed and stamped accordingly (showing it is clear) Once you are at the dealer you will be asked to certify to the following under penalty of law. The above documents will provide proof to the dealer to assist in this certification process. The trade-in is in drivable condition. You are the registered owner, and have been for the least the last year. The trade-in has been continuously insured for the last year. The trade-in is titled in your name and has been for the last year. You have not previously participated in the CARS program. ----- PICTURES Door Jamb photo!