Cash for Clunkers -- Is it for You?
Cash for Clunkers is legislation currently debated in congress as a way to stimulate car sales, improve the environment, and improve safety of American drivers. This is all well and good, but what most consumers need to know is, "Do I qualify for this money?" After all, who doesn't want $3500 to $4500 to help pay for a new car? Before you get too excited, learn the qualifications and stipulations attached to this bill.
Cash for Clunkers - Who qualifies?
Do you have an old gas guzzling clunker sitting in your driveway just begging to be replaced? Congratulations, more than likely you qualify for a cash for clunkers voucher. This is one of those times when having something old and worn out is a good thing.
The older your vehicle and the worse your gas mileage is, the better off you are. To qualify, you must have a trade-in vehicle that meets these requirements:
-- Manufactured less than 25 years before the date you trade it in
-- Continuously insured and registered to the same owner for one full year before being traded in
-- Have combined EPA city/highway gas mileage of 18 miles per gallon or less
-- Drivable
If your vehicle meets these qualifications, proceed looking for a new car. If the thought of going to buy a "junker" at a junk yard or used car lot for a quick trade in crossed your mind, forget it.
Does Cash for Clunkers make sense for you?
If you have a car that is dying a slow death, that is undependable, or is in need of costly and major work, this government program is for you. Make the most of this deal by ensuring the trade-in car is worth less than the value of the vouchers.
Also weigh the cost of a new vehicle. Even with getting the help of $3500 to $4500, the cost of a new vehicle and the payments may outweigh the benefit.
So...is Cash for Clunkers a good deal? That's for you to decide. Check to see if you qualify and determine if taking advantage of this program makes financial sense for you.