Know About Cash For Clunkers and How it Could Work For You

What is Cash For Clunkers ( CARS ) ?

Lets just say Cash for clunkers or Car Allowance Rebate System ( CARS)  is a way to replace older vehicles with new ones that use less fuel, are safer and pollute less. And it would give the struggling auto industry and the US economy a boost.

So How Can I benefit from it?

.If you've got an older, fuel-inefficient car, you're probably wondering how the newly approved Cash for Clunkers law can help you out.The people most likely to use the program would trade in cars worth less than $4,500. Thus, while not necessarily clunkers, most would be at least 8 years old.So if you wanted to change your old cars and get a better price that the market price then go for it.

How long will the program last?

The Car Allowance Rebate System ( CARS ) was interned to run from the 1st Jul 2009 to 1st Nov 2009 or until the $1 billion dollars of initial funding lasts.The response to cash for clunkers has been more than what the government has expected and had run out of their $1 billion dollars funding within the first week. Further $2 billion dollars of funding has been sanctioned by the senate. Car companies, autoworkers, component suppliers and car dealers are all in the queue betting on the government to announce more funding.

How does CARS work?

The government would send up to $4,500 to the selling dealer on your behalf, the amount that the government is going to rebate is depending on a lot of factors, if you:

1. Trade in a car that  has been registered and in use for at least a year, and has a federal combined city/highway fuel-economy rating of 18 or fewer miles per gallon.

2. Buy a new car, priced at $45,000 or less and rated at least 4 mpg better than the old one (gets a $3,500 voucher). If the new one gets at least 10 mpg better, you get the full $4,500.

Can I save more than the $4500 by using other offers?

Yes, You could combine those offers with cash for clunkers. You can make use of governments other tax cut and manufactures offers alongside CARS. For instance if you wanted to buy a hybrid powered car you could very well get an tax exemption using the hybrid tax credit. You also could deduct the sales tax, if any, on your next federal tax return.