CASH FOR CLUNKERS BILL FAQ'S
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Where does the legislation stand? |
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The House has approved it, and the Senate is preparing to vote on it as part of the $106 billion war spending bill that the president would also have to approve. |
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| Q: |
What's the idea behind "cash-for-clunkers"? |
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| A: |
To replace older less fuel efficient cars with newer cars that pollute less and are safer. This plan would also increase car sales, giving the car industry a sales boost. |
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| Q: |
Does the Cash for Clunkers bill apply to used car purchases? |
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| A: |
Currently, only new cars may take advantage of the bill. If you are looking for a used car, click here. |
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| Q: |
What's the bill's status? |
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President Obama backs the bill which is currently in the House of Representatives being discussed. Senators from both parties are working together to form a similar bill, leading to the final discussions between House and Senate. |
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| Q: |
What could stop the bill? |
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Environmentalist lobbyists don’t believe the bill as it stands will make enough difference. If they get the Senate to make enough changes the bill could get tied up in Senate/House negotiations. |
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| Q: |
So how does this work? |
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The government would send up to $4,500 to the selling dealer on your behalf, if you:
1. Trade in a car that has been registered and in use for at least a year, and has a federal combined city/highway fuel-economy rating of 18 or fewer miles per gallon.
2. Buy a new car, priced at $45,000 or less and rated at least 4 mpg better than the old one (gets a $3,500 voucher). If the new one gets at least 10 mpg better, you get the full $4,500. |
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| Q: |
What if I wanted a truck? |
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That is more complicated. Refer to the table on the front page for more details. Click Here |
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| Q: |
How do I find a local Cash for Clunkers Participating Dealer? |
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If you will be purchasing a new car if the bill is signed into law, complete the form on the right. We will have a local dealer in your state contact you and get all your trade-in information now. This will allow you to be prepared when the bill is signed into law and be at the head of the line for the car you want. |
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| Q: |
What will happen to the car I trade in? |
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Once again, we have to wait for the final language but it would seem that the car would be recycled so cars that are worth more than $4,500 on a trade would not be viable for this program. |
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| Q: |
Is it worth it for $4,500? |
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The purpose of the program is for people to trade in old vehicles that are worth less than $3,500-$4,500. |
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| Q: |
Can I combine these incentives with other offers? |
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Yes. For instance, you could trade for a hybrid and get the voucher, claim the hybrid tax credit and get dealer or manufacturer discounts. You also could deduct the sales tax, if any, on your next federal tax return. |
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| Q: |
Are there restriction on the year of my trade-in? |
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The car can not be any older than a 1984 model year vehicle? |
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| Q: |
Would I ever see the $3,500 or $4,500? |
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No. It's an electronic transfer from the government to the dealer. Dealers want to be sure the amount can be counted as cash from the buyer, which would help buyers get credit because they're financing less. |
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| Q: |
Can I just buy an old junker and still get the Voucher? |
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No. You must trade in a car that has been registered and in use for at least a year. |
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| Q: |
What if I just made a trade in that qualified? |
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The bill contemplates making the incentives retroactive to March 30, but it's unclear how to find and junk cars that were traded in that long ago. Some might already be back on the road, driven by new owners. |
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