Tech & Biz

Cash for Clunkers Program 2009: Stimulus Begins Today

by Jordan Yerman | July 24, 2009 at 06:59 am

3677 views | 18 Recommendations | 5 comments

The Cash for Clunkers element of the stimulus program takes effect today. The full details can be found at www.cars.gov, but the gist is that driveable cars that get poor fuel economy can be traded in for a credit, given on the spot by a dealer, for $3500-$4500, depending on the vehicle. Only one vehicle can be traded in at a time, and the credit is not treated as taxable income.

Here's how it works: If you own a 1984 or newer vehicle that has been insured and registered to you for the past year and gets a "combined" 18 miles to the gallon or less, you can qualify. The car must also be drivable.

While this is a good deal collectively for automakers, it's hard to see how buying a new car will help a family during a recession. This is a clear case of conflicting priorities: automakers need to sell cars- lots of cars- to survive. Meanwhile, recession-strapped families need to not buy cars in order to do the same.

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Rhonda J Mangus

at 07:11 on July 24th, 2009

Thanks for this, jordan.

jagan (not verified)

at 08:13 on July 24th, 2009

TheCAR Allowance Rebate System (CARS) is a $1 billion government program

froward1

at 00:11 on July 25th, 2009

Great marketing by a local Nissan dealership in East Texas to highlight the "Cash For Clunkers" program.

froward1 has contributed a photo to this story.

PIM of SPAIN

at 01:41 on July 25th, 2009

At least it is a motivation for people who are credit-worthy to buy a new car if they need so.

The majority of people should like to do so, but are not able to finance the purchase. And the very few with cash at hand can do a great buy, more discount or extras. Because of these aspects the results are mixed. But it is a better solution than subsidizing automobile manufactures. Let the customer decide which brand they prefer. As before is suggested, no bailout or stimulus packages, but financial incentives for the taxpayer. The consumption era is over for a very long while, count with that.

PIM of SPAIN

at 02:53 on July 28th, 2009

There is a lot of hype surrounding the ‘cash for clunkers', which is a nice gimmick but only with transitory effects. Besides, just how many vehicles on the road today don't get at least 18 miles per gallon; this is the eligibility criteria. As it pulls forward purchases that otherwise would have been made later, the program is going to keep sales near a 25-year low for a long period anyhow.