Questions Remain About Program’s Details
The goal of the Program is to get older, less fuel-efficient vehicles off the road while also kick-starting the anemic new car market. The Program will take effect within 30 days of enactment and will expire on November 1, 2009.
Below are some of the details of which car-buyers will be eligible for the voucher program:
¨ Passenger car owners will receive a voucher worth $3,500, if they trade in a passenger car getting 18 MPG or less for a new car that gets at least 4 MPG more than their trade, and the new car gets a minimum of 22 MPG (EPA combined).
¨ Passenger car owners will receive a voucher worth $4,500, if they trade in a passenger car getting 18 MPG or less for a new car getting at least 10 MPG more than their trade, and the new car gets at least 22 MPG (EPA combined).
¨ Owners of SUVs, pickups or minivans that get 18 MPG or less will receive a voucher for $3,500, if their new SUV, truck or minivan gets at least 2 MPG more than their trade vehicle and the new vehicle gets a minimum of 18 MPG (EPA combined).
¨ SUV, pickup or minivan owners that get 18 MPG or less will receive a voucher for $4,500, if the mileage of the new truck, minivan or SUV is at least 5 MPG higher than the trade vehicle and the new vehicle gets a minimum of 18 MPG (EPA combined).
¨ Participating dealers will be able to access electronic vouchers from the government for consumers to purchase or lease qualifying vehicles. (Note: NHTSA is charged with developing rules for program implementation within 30 days of enactment of legislation).
¨ Dealers must ensure that older vehicles are crushed or shredded to get the clunkers off the road.
¨ New vehicle purchased/leased must have an MSRP of $45,000 or less.
¨ Only one voucher per customer.
¨ Excludes leases under five (5) years.
¨ Trade vehicle must be less than 25 years old on trade-in date.
¨ Trade vehicle must be drivable, insured according to State law, and registered to the same owner for at least one (1) year.
There are still some questions regarding certain particulars of the Program (how the trade-in will be certified destroyed, scrappage funds and more). NJ CAR will pass on additional details regarding the Program as these questions (and others) are answered.
In the meantime, the federal government has established an official “Cash for Clunkers” Website that will be updated with the latest information on CARS. Go to www.cars.gov.