Research
how to apply for the cash for clunkers program?
Friday, July 24th, 2009 | Research | 3 Comments
my car has over 225000 miles and very low gas mileage and being a new single mom i need a little break. how to you apply for this clunkers program?
You don’t actually "apply" for the incentive.
Allow me to explain the program. It is designed to benefit:
*Consumers – this action provides them something very tangible in this economic environment
*The Economy – it supports the automotive industry which plays such an important role in the overall health of our economy
*The environment – because it allows us to get greener faster, in terms of taking less fuel efficient vehicles off the road and putting more fuel efficient vehicles on the road
*New Vehicle Dealers – this program provides tremendous opportunity to reach out to a huge base of customers and sell them one of their outstanding new products.
The Bill (pdf download cited below ) was signed on June 24, 2009. The government has assigned NHTSA (National Highway Traffic Safety Administration) to set it all up. They have 30 days to do this. the program should be ready BY July 24, 2009. It is scheduled to end on November 1, 2009… or when the allotted money runs out, whichever comes first. It is a "first come – first serve basis".
It is a complicated task to organize the whole thing and New Car Dealers will be responsible to make the process seamless for consumers.
To make the process easier on yourself there is a step by step process (tutorial) on the Official website that the Government has set up.
(It is important that consumers go to this site for the Official verification of the rules, because there are already scams and misinformation all over the net.)
The 6 step process:
Step #1
Visit the website ( http://www.cars.gov/index.html )for CURRENT information.
The site will also list which new car dealers are registered to participate. Not all dealers are required to. You can also call around to dealers to see if they are going to participate. You will also have to visit another government website for the Official (new) fuel economy ratings.
( http://www.fueleconomy.gov/ )
Step #2
Determine if you qualify, then shop for a new car.
The basic rules are :
*Your vehicle must be less than 25 years old on the trade-in date
*Only purchase or lease of new vehicles qualify
*Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
*Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
*You don’t need a voucher, dealers will apply a credit at purchase
*Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
*The vehicle that you are trading in is required to be destroyed. Therefore, the value you negotiate with the dealer for your trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to you and estimate of the scrap value of your trade-in vehicle.
[When "shopping for the new car", there are certain rules for that too... so go back to STEP #1]
Step #3
Bring the title, registration and insurance papers showing continuous registration and insurance coverage for the past full year. The trade car MUST be: drivable ;Registered,insured & titled to the same owner for at least the last 12 months prior to the transaction
Step #4
When you buy or lease a new vehicle, the dealer handles the submission of all required information to NHTSA. The Dealer will also verify the documents.
Step #5
NHTSA ensures that your purchase meets the requirements. This is the tricky step…because if any of the qualifiers from any of the previous steps are determined to be inaccurate or fraudulent, the dealer that has "fronted" the cash rebate to you, will not see the reimbursment funds
Step#6
About 10 days later, NHTSA will issue a financial credit to the dealer—assuming all program requirements have been met.
Ford has also put together a website for consumers to help with Step #2
( http://www.letfordrecycleyourride.com/ )
I hope this helps.
Can the cash for clunkers car incentive program be combined with the hybrid tax credit?
Friday, July 24th, 2009 | Research | 4 Comments
Yes you can, but only if the new car you are buying qualifies for the tax credit.
Currently, the only cars that qualify for the Federal Tax Credit on hybrid cars are the Nissan Altima Hybrid and the GM hybrids. Ford hybrids qualify for only half their original amount, and will be phased out this September.
Toyota, Lexus and Honda hybrid cars no longer qualify for any Federal Tax Credits.
The Cash for Clunkers program is processed through your dealer. They credit you with the amount you qualify for when you turn in your clunker to the dealer (keep in mind that not all clunkers qualify– There are some pretty strict rules about what qualifies), and the dealer is reimbursed by the U.S. government later on once the clunker has been junked. The credit for the old clunker can be as high as $4500, if it qualifies.
To claim your Federal Tax Credit for the new car, you file a Form 8910 with your 2009 Federal 1040 Income Tax form next April, if you bought a car that qualifies for the credit this year.
Right now I think the Nissan Altima Hybrid is the best deal. It qualifies for a $2300 Federal Tax Credit.
Hope this helps.
What cars are the best deals under the cash for clunkers bill?
Friday, July 24th, 2009 | Research | 1 Comment
Given that you have to buy a new car to get this credit, are there any cars on the market where the depreciation over the first two to four years is less than this value? Remember that they also have to have a high MPG. On my budget, they also have to be under 20k.
For extra credit, what about actual cost of ownership including an average cost to insure, gas, repairs etc. Has anyone come up with a calculator for this?
First of all, this bill has not passed the Senate so you can’t go out and trade in your clunker today and expect the full amount.
New cars/trucks in the cash for clunkers don’t have to be high MPG.
Not sure where you heard that, but this was one of the big objections of the congress men/women that voted against it.
Depreciation has nothing to do with this bill.
Consumers would get $4,500 vouchers if the new car they are buying gets 10 miles-a-gallon better gas mileage than the model they are trading in. For light trucks, the improvement must be 5 mpg better than the older model, and for large light trucks, 2 mpg.
For a $3,500 voucher, the improvement for cars must be 4 mpg or better, for light trucks, 2 mpg, and for large light trucks, 1 mpg. The trade-in vehicle must be no older than a 1984 model and get 18 mpg or less in combined city/highway fuel economy.
New passenger cars purchased with the vouchers must get at least 22 mpg in city/highway fuel economy, light trucks must get at least 18 mpg, and large light trucks 15 mpg. Domestic as well as foreign models sold in the U.S. qualify.
www.edmunds.com will help you with the other questions. They have a section called ‘true cost to own’.
Does your car have to be in running condition to be eligable for the cash for clunkers program?
Friday, July 24th, 2009 | Research | 2 Comments
I was just wondering because I have a 1988 Cavalier that has 6,000,000 mechanical and electrical problems but it runs. ANY information would be helpful.
To determine if your vehicle is qualified check the epa/mpg rating for that vehicle when new…If it saids it should be under 18 miles per gallon, than yes it will qualify. However; I believe your vehicle was rated 22 city and 26 highway; and therefore not qualifyed..
What is stem cell research and how is it connected to abortions?
Friday, July 24th, 2009 | Research | 7 Comments
I hear that abortions can be good in the sense of stem cell research.
But I do not know what that is, so if someone could explain to me what it is and how abortion would benefit for stem cell research that would be great. Thanks!
The problem came up when they were creating stem cells in a lab, they beleive that destroying stem cells is like destroying life. But now they can get stem cells from living tissue or the yummy leftovers after a birth so there is no need to create them just to destroy them.