Cash for clunkers -- Chrysler doubles offer!

I’ve been telling anyone who will listen about “cash for clunkers.”  I’ve hassled family, friends and co-workers.  Now, it’s your turn!  I don’t know that it’s the right fit for everyone – but if you’re considering buying a new car, this is something everyone should investigate.

Officially, I’m speaking about the Car Allowance Rebate System (aka CARS or cash for clunkers) introduced by the federal government.  The goal is to help the environment and the auto industry by giving the public rebates to turn in their gas guzzling cars for new fuel efficient vehicles.  Full details on the program are released tomorrow.  Here’s what you should know right now.

The Rebate:  if you qualify you’re entitled to a rebate ranging from $3,500 to $4,500. No vouchers are needed.  Participating dealers apply the credit and get reimbursed by the government.  It’s easy on you.

What you need to qualify:  First of all – your clunker must get 18 or less MPG (some large trucks and vans have different requirements).  This is a combined city/highway mpg and in order to calculate that – just go to this website.  Plug in the make, model and manufacture year of your car and voila…you have your answer.

There are several other requirements.
• Your trade-in vehicle must have been manufactured less than 25 years ago.
• It must be in drivable condition.
• It must be continuously insured and registered to the same owner for a full year before trade-in.

Your new car:  There are some requirements here too.
• The price cannot exceed $45,000.
• For passenger cars, the new vehicle must have a combined fuel economy of at least  22mpg.  For  SUV’s and small trucks and vans you’re looking at an 18mpg requirement.  Large vans and pickups must get 15mph.
• You cannot buy a used car.
• You can lease a new vehicle, but the lease period must be at least five years.
• You can buy ANY car – this isn’t just for American automakers.
• You can only use one CARS credit per person. No double dipping here.

The future of your trade-in:  Say goodbye to your clunker.  Remember, I said this program is about the environment, not just the automakers.  All trade-ins will be crushed or shredded so they can’t be resold or driven ever again.

How long does this last?  Until November 1st or until the money runs out.  The government has set aside $1 billion dollars for those rebates.  That may sound like a lot, but consider this; The German government tried the same program and quickly ran though $5 billion dollars.  A quick side note here – the program boost their car sales by 40%.  This could be just what our auto makers need to start digging themselves out of a hole…or crater.  Hey, it’s a start.

BONUS – BONUS – BONUS!!!

Chrysler Doubles Offer:  Chrysler has just announced it will double the cash for clunkers incentive.  It will offer $4,500 cash rebates or zero percent financing for six years on most of its 2009 Chrysler, Dodge and Jeep models.  This incentive started today and only runs until August 31st. Seriously – check this out!  This could put $9,000 in your pocket.  Oh, and if you don’t qualify for the government program, you still qualify for the Chrysler rebate.  The government program is designed so that dealers are required to give you any special deals or rebates they’re offering on top of the government rebate. Act now!

Why am I so enthusiastic?  Well, these are tough times and we all deserve a break.  There are some fantastic deals out there.  You may as well look into your options and take advantage of a money saving opportunity.

Now here’s my word of caution.  Even if you save $9,000, you may still not be able to afford a new car. Be honest with yourself.  Maybe you need to shop in the used car lots.  The best car is one you can afford.  Actually, the best car is one you can pay for with cash.

If you have more questions, check out the official government website.  I find that it’s very user friendly and the FAQ are thorough.

Hmmm…I just love that new car smell!