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.
The program has run into some snags even though it’s wildly popular. Dealers have complained that their applications are delayed and they have to pass that delay of delivering the vehicle to the customer. This causes friction between them, their customer, and the government.
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.
The question that you need to ask yourself before you participate in the program is if you need a new car, or you just simply being hypnotized by the number of ads on TV because of the popularity of the program.
Remember, to keep in mind that when you purchase a new car you’re going into deep debt to the tune of $10-$25,000 a term. You’re also going into debt for between 40 and 60 months. In this speech of scarce jobs and opportunities, you need to ask yourself if this is a smart thing to do. It may be a smarter option to keep your current vehicle or to purchase a used car and forgo the rebate.