The cash for clunkers program certainly has seen its challenges already since its inception. There’ve been problems with running out of money and getting the word out so consumers can take advantage of the program. With any luck Congress will see fit to add more funds to the program because it is wildly popular.
There have been some challenges with the program. Some dealerships have complained that they have not gotten word back as to the approval status of their applications in a timely manner. This delays the delivery of the vehicle to the customer.
The maximum rebate program is $4500 but your car can be no older than 25 years old and hasn’t gotten 18 miles per gallon or less. It will have to be registered and insured for the past year. You will also receive the scrap value for your car since it has to be taken off the road and measures taken to ensure that it never runs again.
You see many advertisements from car dealerships letting you know that they will be happy to apply the $4500 to your car purchase. However, I’m not sure that there is such a thing as a sail when it comes to selling cars. Salesmen like to play with the numbers to make you think you’re getting a deal but in actuality they are probably pocketing a lot more than they should.
There are many questions that you can ask yourself when going to purchase a new car. The first question is do I really need a new car. In fact you may be doing this just because you’re responding subconsciously to all the advertising on TV because of the program.
Keep in mind that when you purchase a new vehicle you’re going into debt for many years and normally for well over $10,000. Perhaps your debt level may be as high as $30,000 for a new car. Is this a smart thing to do right now? We live in a fragile economy and most of us know people being laid off or hours reduced. You need to ask yourself if this is the smart thing to do because in fact, it may be smarter to forgo the rebate and buy a used car or keep the car that you have.