How to use 'cash for clunkers' |
|
|
Step 4: Decide if it makes financial sense to participate in the program.
Consumers will receive $3,500 toward the purchase or lease of a new vehicle if it gets at least four, but less than 10, miles per gallon more than the old vehicle. They will get $4,500 if the new vehicle gets a least 10 miles per gallon higher than the old vehicle. Once you know how much credit you'll receive, calculate the value of your clunker using one of the many popular auto information Web sites such as Edmunds.com, Kelley Blue Book or NADAguides.com. The manufacturers also have excellent calculators on their Web sites.
If your vehicle is worth more than the amount of the credit, you may want to try to sell it yourself or trade it conventionally, without using the CARS program.
Remember, these credits are in addition to any rebates and incentives the manufacturer is offering, so this can amount to a five-digit savings or more off the new vehicle when you combine the credit with the manufacturer's rebates.
Step 5: Decide on a dealer.
At the time of publication, about 16,000 of the 20,000 franchised new car dealers were registered to participate in the CARS program, but the National Highway Traffic Safety Administration, or NHTSA, the government agency that is administering the program, says that consumers should use its searchable database to locate a dealer to ensure the dealer they choose is participating.
Consumers do not need to register for the program. To participate, they simply reach an agreement to buy or lease a new qualifying vehicle with any participating dealer and then tell the dealer they want to trade-in their old vehicle under the CARS program. Any third party who reaches out to a consumer to try to "match" them with a dealer for the program may be committing fraud, and consumers should be cautious, the NHTSA and attorneys general in Ohio and Illinois warn.
With the majority of dealers participating in the program, you have plenty of choices as to where to take your business. Some dealers may be more willing to negotiate the price of the new vehicle than others, so choose carefully. Keep in mind that you may get a better deal if you negotiate the new vehicle price first, and then mention your interest in using the CARS program to get rid of your old vehicle.
Step 6: Complete the transaction paperwork and drive home.
Consumers should make sure that the transaction paperwork clearly outlines the terms of the sale, the applicable credits (including the $3,500 or $4,500 CARS credit and any manufacturer's rebates) and the applicable fees to ensure they are being charged appropriately. The CARS credit is deducted from the purchase price of the vehicle at the time of the sale or lease commencement. The dealer gets reimbursed via the program after it sends the old vehicle to be crushed.
The CARS program will end Nov. 1, 2009 or when the $1 billion allocation runs out, whichever comes first. Updates on the program as well as more details can be found at cars.gov or by calling (866) CAR-7891.
|
