United States Cash for Clunkers Program Details
$3,500 or $4,500 Credit Voucher, Down Payment- 2009 Vehicle Purchase
Jun 26, 2009
As of late June 2009, the anticipated Cash for Clunkers program is now a reality for United States citizens.
Barack Obama Signs Cash for Clunkers Act
U.S. News & World Report announced on June 25, 2009 that President Barack Obama has signed the Cash for Clunkers legislation (officially known as the Consumer Assistance to Recycle and Save Act of 2009) into law.
The bill provides for $3,500 or $4,500 vouchers to consumers who trade in a qualifying less fuel efficient vehicle for a qualifying brand new vehicle with higher combined fuel economy. Americans may use these automobile vouchers as down payments toward new vehicle purchases in 2009.
U.S. Cash for Clunkers Program Details – How to Qualify for a $3,500 Voucher
Many scenarios may qualify an individual for a $3,500 down payment, as follows:
- Buy a new fuel efficient passenger automobile with a combined fuel economy at least 4 MPG higher than the combined fuel economy of the vehicle traded in.
- Purchase a category 1 truck with a combined fuel economy that is at least 2 MPG higher than the trade-in.
- Purchase a category 2 truck with a combined fuel economy of at least 15 miles per gallon. To qualify under this option, one of the following additional requirements must be met: a) the trade-in is a category 2 truck with a combined fuel economy at least 1 MPG lower than the new truck being purchased or b) the trade-in vehicle is a 2001 or older category 3 truck.
- Purchase a category 3 truck and trade in a 2001 model year or older category 3 truck that is either the same size or larger than the new vehicle.
2009 Vehicle Purchase Credit – How to Qualify for a $4,500 Down Payment
Individuals may qualify for the higher $4,500 voucher credit toward a 2009 vehicle purchase under these scenarios:
- Purchase a new fuel efficient passenger automobile that gets at least 10 mpg more than the trade-in.
- Buy a new category 1 truck that gets at least 5 mpg more than the trade-in vehicle.
- Buy a category 2 truck with a combined fuel economy of at least 15 mpg and trade in a category 2 truck that gets at least 2 miles per gallon more than the trade-in. Under this scenario, the trade-in must be a category 2 truck.
Consumers should keep in mind that any references above to miles per gallon, or mpg, refers to the combined fuel economy (a combination of city and highway miles per gallon).
Cash for Clunkers Information – Consumer Reports Website, Fueleconomy.gov
Definitions of categories 1, 2, and 3 trucks referenced above are on the fueleconomy.gov website. For further clarification, the Consumer Reports blog published a handy chart that visually depicts the rules described above.
Related articles:
Cash for Clunkers Rules – Obama Economic Stimulus
Obama's Car Tax Break – Economic Stimulus Details
Resources:
Consumer Assistance to Recycle and Save Act of 2009
Obama Signs Cash for Clunkers into Law (June 25, 2009) on Usnews.rankingsandreviews.com
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