It seems that $1 billion isn’t enough for the “cash for clunkers” program. Just days after the Car Allowance Rebate System (CARS) Act was signed, more than $775 million has already been spent. Many people have traded in their old gas-guzzlers for brand-new cars with better fuel economy.
About 185,000 new cars have been sold, with GM the biggest beneficiary, having 18.7 percent of the new sales. Toyota isn’t far behind at 17.9 percent, with Ford at 16 percent. Detroit automakers took 45.3 percent of the new sales, while Japanese giants Toyota, Honda and Nissan had 36.5 percent.
The “cash for clunkers” program succeeded in boosting auto sales. To keep the program running until the November deadline, the House and the Senate approved an additional $2 billion for the CARS act. This has been signed by President Obama, and assures the continuation of the CARS Act until November.
This is certainly good news for those who wish to take advantage of the program’s benefits. If you plan to trade in your gas-guzzler for an economy car, here are some things to remember:
- Check the trade-in value of your gas-guzzler first – The voucher issued replaces the value of the car to be traded-in. If your car is worth more than the voucher, it’s better to trade-in your vehicle the normal way.
- CARS Act only applies to brand new vehicles – You won’t receive a voucher if you are going to trade in you gas-guzzler for a used vehicle.
- Check the MPG – These days, there are many cars that can do 22MPG (the minimum mileage requirement for passenger cars) easily. However, if you want the maximum benefit, look for vehicles with at least 28 MPG.
You may wish to check specific requirements here.
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