Cash for Clunkers Rules for Trade-In's

When Congress finally signed the bill that included the Cash for Clunkers program, many consumers and auto dealers rejoiced. This new incentive program was designed with several things in mind. First, it was created to eliminate gas guzzling clunker cars off the roads since they are not so environmentally friendly. Second, it was implemented so that consumers would start spending again on new cars, which in turn would boost struggling car manufacturers and dealers. It's no big secret that the economy has been in a serious downturn, and many people lost jobs, especially from car companies. With this new plan in place, it is hoped that consumers will start spending, buying up or leasing new cars, which will jumpstart things for the economy.

It's important for the prospective new car buyer to understand exactly what Cash for Clunkers rules they need to follow when it comes to making their trade in. Not following any of these rules will surely exclude you from the savings benefit of this new incentive program. The most important thing to note is that your "clunker" car must be road-ready, and drivable. If it is unable to drive on the roads, it won't be eligible for the clunkers program. The clunker vehicle must be insured and registered in your name for at least one full year prior to you making the trade-in. Another rule is that the car must be less than 25 years old. A 26-40 year old plus vehicle may look and drive like a real clunker, but it won't qualify. Third, the trade-in can only be applied towards a brand new vehicle, which in this case would likely be the 2010 models at dealerships. If you are choosing to lease the car instead of buying it, your lease must be for 5 plus years. And the final rule to note is that the Manufacturer's Standard Retail Price of the new vehicle you're trying to buy or lease can not be over $45,000. That unfortunately excludes many fancy SUV's, Mercedes and sports cars from the deal.

If you follow the rules listed above to the fullest, you are more than likely to be able to trade in your used clunker for a much newer, nicer and more fuel-efficient automobile. This will not only help your wallet and the environment but with enough people jumping on board for the Cash for Clunkers program, it should give the economy a nice boost as well. The program will officially run from July 2009 until November 2009, or until all of the allotted funds for it have been exhausted, whichever may come first.

More information on Cash 4 Clunkers:

Cash for Clunkers Stimulus Bill program

How to Participate in Cash for Clunkers program