Auto Trends

classic white Camaro Z28, originally uploaded by lastsnare99

Is this a classic or a clunker? (photo above)

If you are like a lot of people, the Cash for Clunker program probably won’t mean much at all to you. There are two different frames of thought as to the outcome of this program depending on which side of the political spectrum you reside.

On the one hand, the program is believed will be a runaway success and the designated $1 billion dollars will dry up no later than this coming November. Assuming the program sets on its way by August, this gives U.S. consumers only three months to take advantage of its rewards.

On the other hand, there are folks who don’t believe that the program will be a success at all. Their view is that the people who own the eligible clunkers (1984 or earlier vehicles with less than 18 mph), are not exactly the crowd looking for a brand new vehicle right now.

Let’s take a look at a few rules of the program and let you decide for yourself its value:

Rule 1- First up, this is not going to be just any push, pull, or drag-in affair. The vehicle being traded in has to be in drivable condition, pass emissions, and have been covered by auto insurance for at least the past year. This is of course to keep just any Joe or Joletta from dragging something out of the junkyard to get a quick discount on a new vehicle.

Rule 2- The trade-in must be from the year 1984 on up and exhibit an average, combined mpg rating of 18 or less (both cars and light trucks). They won’t be taking your suggestions on how terrible your gas mileage seems, instead they will be going off the official numbers which can be found on the government website.

Rule 3- You will receive $3,500 for a new car exhibiting no less than 22 mpg on up to as much as $4,500 if the mpg rating is 10 or above the original clunker. Light trucks will find the rules more lenient with $3,500 going to new trucks exhibiting no less than 20 mpg, or $4,500 if it is at least 5 mpg over the original.

Rule 4- The program has $1 billion to work with, and will be distributed on a first come/first served basis. When the money runs out, the program does too, so don’t wait too long. It is estimated to start somewhere around late July/early August and end in November of 2009.

Rule 5- All vehicles traded-in will not be resold. They will be crushed, and there are no if’s, and’s, or but’s about it. So if your late grandpa left you that old Dodge when he died, don’t do anything that you won’t be able to live with. Also if your vehicle is considered a classic, it might be worth more to a collector than $3,500 to $4,500. Just some food for thought!

All in all, it is not a perfect program, but it might save you some big bucks while shedding your old clunker if you are among the right circumstances!