Cash for Clunkers to officially begin July 23rd
When President Obama signed the Cash-for-Clunkers bill into law back on June 24th, the Transportation Department was given 30 days to set the official rules and regulations for the program that put the actual plan into motion. According to the official CARS (Car Allowance Rebate System) site, the NHTSA intends to get the deed done a day early by July 23rd. Although the paper the President signed stipulated that consumers may be eligible for the program starting on Wednesday, July 1st, the Transportation Department is warning dealers not the jump the gun:
Interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved. If a dealer chooses to structure a transaction before the final rule is issued, they will bear the risks associated with later demonstrating that the transaction meets all of the specifications of the final rule.Dealerships who violate the official rules and regulations may be subject to fines of up to $15,000. Still have questions? Click here to see the complete list of FAQs straight from the NHTSA.
[Source: CARS | Photo: kudzuplanet CC 2.0]
Reader Comments (Page 1 of 1)
Noz 2:40AM (7/01/2009)
So essentially all the irresponsible douche bags out there get a break while responsible people who already drive reasonably efficient and somewhat old cars do not.
Nice....and we wonder why our housing market is so f'd up.
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Kid Dynamic 1:30PM (7/01/2009)
Yeah, I was just thinking about this this morning. In the space of a single year, the government has spent billions and billions of dollars to pay foolish and greedy people for their stupid decisions. It's bad enough to pay off our big industries, do we also have to subsidize people who don't bother to read their home mortgages before they sign, or buy gas guzzlers to look cool but then regret it when they get 8MPG?
I've always thought that the solution to improving mileage is to start at the roots: raise gas taxes. Double, triple, quadruple. Treat it like a "sin tax" like cigarettes. This will encourage the guzzler buyers to change their buying habits without rewarding bad behavior. And, we (as a nation) might get some of that bailout money back into the treasury.
My disgruntlement with "Cash for Clunkers" is largely due to the restrictions. I'd love a newer car with better mileage, but I don't have extra money to spend on it. On the other hand, I guess I was TOO SMART for my own good when I bought a Honda Accord instead of a pickup truck, because my car's mileage is too good to qualify for this program. Despite the fact that it's old and has 250,000 miles and it's starting to burn oil and doesn't get nearly the mileage that the EPA says it should.
I'm frustrated that fools that buy too much house and too much car are getting cash money while my family, having done our best to make informed and wise decisions, is struggling just to pay rent on a tiny apartment and drive around old Hondas.
Groan.
Noz 2:58AM (7/02/2009)
Indeed...it's extremely frustrating. Stupidity and greed are what drive this country...so it's no surprise responsible, decent people here get the shaft. Wall Street didn't become what it is without the gutless, immoral bastards who run it.
As for housing...well said. I hope those fools who bought too much house lose it all and more. No remorse.
Tyler Durden 8:55AM (7/01/2009)
If someone owns a Van or Truck that meets all the requirements, can they utilize the rebate on a new Car that meets the requirements?
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Bob Knutson 10:40AM (7/22/2009)
They sure can, but they can't also get other than scrap trade in value for the van/truck as well. The cars that go through this crazy system are scrapped, and the dealer can not sell the car to anyone and put it back on the road. So, you can only negotiate scrap value for the trade in with the dealer. So, if your van or truck are even reasonably worth anything, it will detract from the value of the transaction. This whole thing is bogus and will only help those who haven't been helping themselves for a long time. If the government really wanted to do this right they would eliminate the MPG requirement and just require and MPG upgrade of (you pick the number) more for the new car from the old one. Instead, the average MPG magic number is 18, which pretty much eliminates most cars (save the really big ones that are probably worth more than 3500 with trade anyway). This thing will help out the drug dealer who drives a piece of junk and wants a new car (and will probably pay cash for it). It won't help the average American who already has downsized to cars, or has a truck that is only used for hauling and he/she just can't give it up. Most other normal Americans have cars that are worth more than this trade in anyway. In fact, this thing is basically sucking money out of taxpayers who have already been doing the right thing, to transfer it to those who haven't been, while demolishing the value of older cars to folks who can't afford to buy a new car in the first place and can't take advantage of the program. Or maybe Obama also has some sort of loan program to those who just can't afford a new car so they can take advantage of this as well. Who knows, at this point I would believe anything.
Gary 11:54AM (7/01/2009)
I grew up 4 blocks from the Cars on a Stick in the picture. They tore it down about a year ago to make room for a Walgreens.
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Bob Seeley 6:06PM (7/01/2009)
So looks like our Federal government has reduced the trade-in value of our classic cars to "scrap value".
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