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Thursday, August 13, 2009

Cash for Clunkers

So I got excited as I heard more and more about this program because my next car is definitely a hybrid and maybe I could take advantage of this. Not possible because here's the deal:

You're eligible for $4500 if your new car will get 10 miles more per gallon than your current car.
My new car will get about 25 miles more per gallon than my current car.
The trade-in value of your current car cannot exceed $4500.
I'd be lucky to get $2000
Your current car must be manufactured between 1985 and 2001.
Oops, my current car is from 2002.
Your current car has to get less than 22 miles to the gallon.
Oops, my current car is listed as getting 26.

I was disappointed, but I've also heard grumblings about how the dealers just deduct from your trade-in to account for the government payment (the money goes directly to the buyer, but still, they're wise to the psychology of it). I also found out through my research that the real name of the program is CARS - car allowance rebate system - so the money gets paid to you as a rebate the next time you file an income tax return. I was also a bit perturbed to realize that you can get a $3500 rebate for buying a car that get ONE mile more per gallon than the car you own now. I happen to think it's unfair to create an incentive for improving gas mileage by one mile per gallon, but I get nothing for doubling mine. Typical.

All in all, the truth is, and this isn't sour grapes, we can't afford a new car payment at this time, so it's just as well not to be tempted.

Note: The CARS program, a.k.a. Cash for Clunkers, has a cool website where you put in information about the car you have now and the car you want to buy, and it pops out an assessment of what you can get from the program.

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