The Government is putting aside $1 billion to fund this program. Basically, you trade in your old, not so fuel efficient vehicle for a new one that is better on gas and you can claim your voucher through the dealership. We are a participating dealer, by the way. The vouchers will be either $3500 or $4500 depending on how much fuel your new car saves. The program ends on November 1, 2009 or when the billion runs out, whichever comes first. There are a few restrictions, but nothing crazy.
Here's an example:
Joe currently drives a 1998 Ford Explorer with 235,000 miles on it. It has a V8 engine and according to the EPA (www.fueleconomy.gov), the Explorer got a combined rating of 17 mpg when it was new. It currently has a Kelly Blue Book value of $500. In addition, the tail lights are broken and the air conditioning is not working.
Joe wants to buy a new Ford Escape. The Escape V6 that he wants has a combined rating of 24 mpg. An increase of 7 miles per gallon. According to the program, Joe would give up his Explorer and get a voucher for $4500 toward the purchase of the Escape. The Explorer would be turned into scrap and have little or no cash value.
In addition to the $4500 government voucher, Joe also gets a $2500 rebate from Ford Motor Company. That is a total of $7000 off the price of the Escape before he even negotiates a discount from his dealer!
The result.....
- Joe uses less fuel and emits far less harmful fumes into the air.
- The old Explorer is taken off the road and the metal and parts are recycled.
- He gets to drive a brand new car and have a much lower monthly payment than expected.
- He has stimulated the economy by purchasing a new car.
Way to go Joe!
If you would like more information on the Cash for Clunkers program, visit www.cars.gov. If you are thinking that it might be for you, please consider us. www.plantationford.com
