Cash for Clunkers: federal program offers cash for old cars

Last Thursday, President Obama signed a new car sales stimulus bill into law.  If you have an old gas guzzler in the driveway, it may now be worth a lot more than you think. 

The National Highway Traffic Safety Administration is currently working on this program.

Cash for Clunkers is a government rebate of between 3500 and 4500 for you’re old inefficient car.

The program is to start no later than July 24th.

The rules determining how the program works are still being written and finalized.

The government has set up a website that explains the basics for the public.

For your car or light truck to be eligible it must be drivable, been owned and insured continuously for at least one year.

The car must have been manufactured between mid 1984 and 2001, sorry no classics.

It must have a combined gas mileage of 18 miles per gallon or less, you can find out your cars gas mileage by going to Cars.Gov.

Heavy duty trucks and vans are applicable but have different rules.

The new vehicle has to meet several requirements as well.

It must be a new car either purchased or leased for five years.

The car must have a MSRP of 45,000 or less and the car must be rated to get 22 miles per gallon combined.

The combined gas mileage is the number in between city and highway on the sticker.

You can get 3500 if your new car gets between 5 and 9 miles per gallon more than your old car.

But if you bump that number to ten more than you can get 4500 dollar.

The rebate is not on top of the trade in value because it is the trade in value.

If you use this program your car will not be resold it will be stripped and crushed.