Consumer Assistance to Recycle and Save (CARS) Act

Most of us have heard the 'Cash for Clunkers' or CARS bill has passed, today was the first official day for using these funds to buy a new vehicle.

This has been passed under the guise of creating more jobs and helping stimulate the auto industry by getting people into showrooms to buy more new, fuel efficient, vehicles. Lets call this what it is, another waste of tax payer money to entice people who cannot other wise afford it, to buy a new vehicle and take on a new car note, one of the worst investment opportunity out there today.

Chances are if your primary mode of transportation is worth $4,500 or less there is a reason you do not have a new car in your driveway...

The program details:

The program is authorized from July 1 to November 1, 2009 with $1 billion in emergency funding, or until funding runs out, whichever comes first.

Trade-in Vehicle Requirements

• Be in drivable condition
• Be continuously insured and registered to the same owner for at least one year
• Have a combined fuel economy value of 18 mpg or less (Work trucks must be pre-2002 regardless of mpg)
• Not be more than 25 years old with historic or aesthetic value. These vehicles are valued by hobbyists or are a valuable source of restoration parts.

New Vehicle Requirements

• The new vehicle must have a BASE manufacturer's suggested retail price of less than $45,000.
• New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
• New small trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old vehicle, the voucher will be worth $4,500.
• New large trucks (pick-ups and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
• Consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a pick-up or van weighing between 6,000-8,500 lbs.
• The mpg values are EPA combined city/highway fuel economy as posted on the window sticker of new vehicles and can be found at fueleconomy.gov

For full details visit www.cars.gov