Anyone out there know much about the proposed 'Cash for Clunkers' bill that just passed through the house? Ive done some reading up on it, but I'm not positive I completely understand it.
A fairly explainatory article is found
at this link.
A small portion of the article states:
Quote:
Q: If the House bill becomes law, how would it work?
A: The government would send up to $4,500 to the selling dealer on your behalf, if you:
1. Trade in a car that — this is a key point — has been registered and in use for at least a year, and has a federal combined city/highway fuel-economy rating of 18 or fewer miles per gallon.
2. Buy a new car, priced at $45,000 or less and rated at least 4 mpg better than the old one (gets a $3,500 voucher). If the new one gets at least 10 mpg better, you get the full $4,500.
Example: Trade that well-worn 1985 Chevrolet Impala V-8 police special, rated 14 mpg, for a 2009 Impala V-8 rated 19 mpg and the government will kick in $3,500. Downsize to Chevy Cobalt (27 mpg) or even a larger Honda Accord (24 mpg) and get $4,500.
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I've also read and seen on TV that the dealers will take these trade ins, and then send them off to be "crushed"...dissmantled...so the 'gas guzzling' vehicle won't ever be used again.
So for example, does this mean that I couldn't trade in something worth 10 to 12K on a car, and get the 3500 or 4500 on top of that? (I can't imagine so, if the dealer HAS to send the trade in off to a junk yard) Does this basically only apply to cars worth 3 or 4 grand or less?