Late last week, Congress passed the Supplemental Appropriations Act of 2009 to continue funding for the wars in Iraq and Afghanistan. A last minute insert into this bill revived the ‘cash for clunkers’ concept that has been floated through Washington through this spring.
Since President Obama is expected to sign this bill into law, I am going to summarize the clunker provisions for you:
- You must currently own a vehicle made 1984 or later that gets 18 miles per gallon or less;
- You must have owned and insured this vehicle for at least one year and it must be in drivable condition;
- For the purchase of a new passenger car, an increase of 4 miles per gallon gas mileage will make you eligible for a $3,500 voucher toward your new car purchase - and if your new car earns at least a 10 miles per gallon improvement, then your voucher will be worth $4,500;
- For the purchase of a new light truck or SUV, a 2 mile per gallon improvement will net you the $3,500 voucher and 5 miles per gallon increase will receive the $4,500;
- These mileage requirements are based on the EPA combined city/highway ratings - you can get this information at: www.fueleconomy.gov ; and
- You must purchase your new vehicle between July 1 and November 1, 2009, and the purchase must be made at a participating dealer.
If you currently own an older vehicle and have been thinking about purchasing a new one, then I would suggest taking advantage of this program as soon as possible. Total funding appropriated for this program was $1 billion, so it is likely that the funds will run out prior to the program expiration date.
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