ForAnyAuto
8590 Laguna Grove Dr. Elk Grove, CA 95757Sales: (888) 306-7383
- Parts and Service: 888-355-4768
The entire team would like to thank everyone involved with the Cash for Clunkers program. A very big THANK YOU FOR YOUR PATIENCE to all the clients who purchased during this time. There was no way to know how overwhelmingly successful the program would be. It was not possible to staff for that kind of volume, and we truly appreciate the amount of time it took to purchase a car. We appreciate your business and are here to assist you in the future.
FAQs: Cash for Clunkers Program
1. What is the goal of the Cash for
Clunkers program?
The Cash for Clunkers program provides incentives to
owners of older, less fuel-efficient vehicles to trade them in and purchase
new, more fuel-efficient ones. The program will benefit American consumers,
stimulate showroom traffic and auto sales, and help to reduce fuel use and
vehicle emissions. New vehicles are cleaner, more fuel efficient and have many
safety technologies not available on older ones.
2. How does the Cash for Clunkers
program work?
An owner of a passenger car, minivan, SUV, or pick-up truck
that gets an EPA combined 18 mpg or less can trade it in for a government
electronic voucher good toward the purchase of a new vehicle. The amount of the
voucher is either $3,500 or $4,500, depending on the mpg improvement of the new
vehicle over the one it replaces. The mpg improvement required for the $4,500
voucher is substantially easier to achieve for vehicles classified as ?trucks?
(including SUVs, minivans and pickup trucks) than for passenger cars.
3. What is the current status of the
Cash for Clunkers legislation?
As of June 18, 2009, the legislation has passed both the
U.S. House of Representatives and the Senate. President Obama supports the
program and will sign it into law within days.
4. What older vehicles are eligible for
the program?
The vehicle being traded in must be manufactured less than
25 years before the date of the trade-in. Antique car collectors and hobbyists
asked that vehicles more than 25 years old be ineligible. Most importantly, the
trade-in vehicle must have a combined (city/hwy.) fuel economy rating of 18 mpg
or less.
5. Are there other restrictions, such
as length of ownership?
The trade-in vehicle must be in drivable condition and have
been continuously insured and registered to the same owner for at least one
year immediately prior to the trade-in.
6. How can dealers and customers tell
if a vehicle is eligible for trade-in under the program?
NHTSA will launch its Cash for Clunkers website on June 19
at www.cars.gov. At first, it will have minimal information, but
eventually, there will be additional consumer information and dealer portals.
In the meantime, dealers and consumers can check the combined fuel economy
ratings of older vehicles on www.fueleconomy.gov to see if they qualify.
Click on ?Compare Side by Side? and select a model year and vehicle make to
find the Combined EPA label figures for a given model. The correct mpg number
is the one listed as ?Estimated New EPA mpg.?
7. Does the consumer get the trade-in
value of the vehicle in addition to the government voucher?
No. The voucher value is in lieu of the trade-in value.
Consumers should choose whichever option benefits them the most.
9. Can any make of vehicle be turned in
a dealer?
Yes. Any make of vehicle can be turned in at any registered
dealer. The applicable voucher amount can be applied as a down-payment or
partial payment towards a new vehicle.
In order for a dealer to process the
electronic voucher, the customer must purchase an eligible new vehicle.
10. Is there a price cap on the
vehicles eligible for purchase with the electronic voucher?
Yes, the price cap on the vehicle is $45,000 (MSRP).
11. Is the value of the voucher
tax-free to the consumer?
Yes.
12. Is there an income limit that
disqualifies certain vehicle owners?
No.
13. What are the fuel economy
requirements for the new vehicle?
- For Passenger Cars:
At least 22 mpg (combined) AND
4-9 mpg improvement over trade-in
vehicle, $3,500
At least 10 mpg improvement over
trade-in vehicle, $4,500
- For SUVs, Minivans and Light-Duty
Trucks (< 6,000 lbs.):
At least 18 mpg (combined) AND
2-4 mpg improvement over trade-in
vehicle, $3,500
At least 5 mpg improvement over
trade-in vehicle, $4,500
14. May the voucher be used as the down
payment on a new vehicle?
Yes.
15. When will the program start?
The legislation states that the program begins July 1,
2009. However, once the new law is signed by the President, a 30-day period
is provided for the U.S. Department of Transportation (DOT) to implement the
program. Although dealers can technically begin sales under the program as of
July 1, the government has informed us they will not be prepared to reimburse
dealers on July 1. It is unclear when they will be able to accept claims, but
likely by the end of July, if not earlier.
16. How long will the program last?
The program will be in effect through October 31, 2009 or
until the initial $1 billion in federal funding for the vouchers runs out,
whichever occurs earlier. It is uncertain whether Congress will approve
additional funding to extend the program beyond October 31.
18. How many vehicles will be sold
under the program?
The original goal was to trade-in one million older, less
fuel-efficient vehicles and replace them with new, more fuel-efficient ones.
However, the $1 billion in initial funding provided by Congress will cover
about 250,000 vehicles.
21. How long will it take for dealers
to be reimbursed by the government?
DOT is required to reimburse dealers via electronic transfer
not more than 10 days after the submission of required information supporting
the eligible transactions. However, the reimbursement process will not be
available on July 1. Dealers who wish to sell vehicles under the program before
the financial reimbursement system is operational should be cautioned that they
will experience a delay in reimbursement well beyond 10 days. We would estimate
that the system should be operational by the end of July.
22. Are lease vehicles included in the
program?
Vehicles may be leased using the voucher, but only if the
lease term is 5 years or longer.
23. Does the dealer need to arrange for
the vehicle to be scrapped?
Yes, a participating dealer must transfer the vehicle
(including the engine block) to a participating recycler or dismantler for
disposal. A list of eligible disposal entities will be included in the
regulations issued by DOT. Dealers will have to certify the transfer of the
trade-in vehicle to a participating disposal entity and submit the VINs of the
trade-in and new vehicle purchased.
24. What happens to the vehicle once
it?s transferred to a dismantler or recycler?
The vehicle will be crushed or dismantled and not re-sold as
a vehicle to a consumer.
25. Is the entire vehicle able to be
recycled or must certain parts be crushed?
All of the vehicle may be recycled with the exception of the
engine. The engine must be disposed of, as well as any harmful or hazardous material
from the car (i.e. mercury, antifreeze, or other refrigerants) must be removed
prior to crushing or shredding. The drive-train can only be sold if separated
into parts. The government will establish the detailed requirements during the
30-day rulemaking.
26. Are there other restrictions on
dealers?
Dealers must use the voucher in addition to any other rebate
or discount advertised by the dealer or offered by the manufacturer. The dealer
is prohibited from using the voucher to offset any other rebate or discount.
27. Do dealers receive a processing fee
for handling the trade-in?
Fifty dollars of the amount paid to the dealer for scrappage
of the vehicle is considered an administrative cost to the dealer associated
with participating in the program. Further details will be included in the
regulations.
28. Can the dealer keep the amount paid
to it by the recycler?
Yes, further details should be
provided in the regulations.
29. What else does the dealer need to
tell the customer?
The dealer must disclose to the customer the best scrappage
value of the vehicle being traded in.
30. Can a customer trade-in two
clunkers and combine two vouchers towards the purchase of a new vehicle ?
No. Only one voucher may be applied toward the purchase of a
single vehicle.
31. Can an individual obtain more than
one voucher?
No, each individual and each trade-in vehicle is eligible
for only one voucher.
32. Is there any limit on how many
vouchers a given dealer can process during the program? No.
33. Will the Department of
Transportation promote the Cash for Clunkers program to consumers?
Cash for
Clunkers Examples
Customer A trades-in a MY 2000 Mazda MPV (18 mpg) and
receives a $4,500 voucher toward the purchase of a MY 2009 MAZDA5 (24 mpg).
The MPV is less than 25 years old and
meets the trade-in threshold of 18 mpg or less. The replacement vehicle meets
the 18 mpg minimum for trucks. It achieves a 6 mpg improvement over the
trade-in vehicle, exceeding the 5 mpg gain required for a truck to receive
$4,500.
Customer B trades-in a MY 1998 Ford Explorer (16 mpg) and
receives a $4,500 voucher toward the purchase of a new 2009 Mazda Tribute 2WD
(24 mpg).
The Ford Explorer is less than 25 years
old and meets the trade-in threshold of 18 mpg or less. The replacement vehicle
exceeds the 18 mpg minimum for a new truck. It shows an improvement of 8 mpg
over the old vehicle, more than the 5 mpg gain required for a truck to receive
$4,500.
Customer C trades-in a MY 1994 B3000 4WD pickup (17 mpg) and
receives $3,500 toward a new MAZDA6 i (23 mpg).
The trade-in vehicle is less than 25
years old and meets the trade-in threshold of 18 mpg or less. The replacement
vehicle exceeds the 22 mpg minimum for a new passenger car. It achieves an
improvement of 6 mpg over the old vehicle, exceeding the passenger car
improvement of 4 mpg required to receive $3,500. In this example, the new
passenger car would have to get at least 27 mpg combined, a 10 mpg improvement,
to qualify for $4,500.
Customer D trades-in a MY 1998 Ford Taurus (18 mpg) and gets
a $3,500 voucher toward a new 2009 MX-5 Miata (24 mpg).
The trade-in vehicle is less than 25
years old and meets the trade-in threshold of 18 mpg or less. The replacement
vehicle exceeds the 22 mpg minimum for a new passenger car. It achieves a 6 mpg
gain over the old vehicle, exceeding the 4 mpg improvement for passenger cars
to receive $3,500. In this example, the new passenger car would have to get at
least 28 mpg combined, a 10 mpg improvement, to qualify for $4,500.
Customer E trades-in a 1992 Isuzu Rodeo 4WD (14 mpg) and
gets a $4,500 voucher toward the purchase of a CX-7 4WD (19 mpg).
The trade-in vehicle is less than 25
years old and meets the trade-in threshold of 18 mpg or less. The replacement
vehicle exceeds the 18 mpg minimum for a new truck and shows an improvement of
5 mpg over the old vehicle, meeting the required truck improvement of 5 mpg to
receive $4,500.
