Cash for Clunkers is a program which was started by the car manufacturers and automakers that allows car buyers cash to trade low-efficiency, gas hungry vehicles for more fuel efficient & low or zero emissions models. It was started earlier when Obama was used to be the president but due to Coronavirus this program is again introduced as life has come hard at people from the auto industry.
Many top companies like Ford use Cash for Clunkers to make a comeback to help the auto industry while putting cash back in consumer’s pockets.
Will “Cash for Clunkers” be Revived Because of Coronavirus?
As per the current scenarios and the federal government struggles to provide jobs to the people, the Cash for Clunkers is likely to be around the corner to push the automobile industries. Many believers like Ray LaHood from the Transportation department, Morgan Stanley automotive analyst Adam Jonas genuinely think it’s the right time to bring back Cash for Clunkers.
How Did “Cash for Clunkers” Work?
Cash for Clunkers was formerly known as the Car Allowance Rebate System or CARS. The goal of the program was to encourage consumers to buy new cars to keep the auto industry in the market. With this program the car trading for a fuel-efficient new vehicle garnered the consumer from $3500 to $4500 direct from the U.S. Government. As per the reports the federal government has spent around $3 billion to clunker owners.
Which Vehicles Were Eligible for “Cash for Clunkers”?
For a vehicle to be defined as a clunker, the car has to meet the program’s parameters. The car must be previously registered and insured for the year preceding the trade in transaction. The vehicle can’t be 25 years old with retail price no greater than $45000 with a minimum fuel economy of at least 22 mpg. The car must be in drivable condition and must have a combined average rating of 18mpg or less.
Did ‘Cash for Clunkers’ Work?
The Cash for Clunkers not only helps the auto industry but also the dealerships and the consumer as well. Earlier almost 700,000 older and inefficient vehicles were traded in under the CARS program. As per Morgan Stanley the US Government spent a total of $3 billion and generated roughly $13 billion in sales. It helped a lot in boosting the economy and the new vehicles on the road significantly reduced emissions and fuel consumption by the older models they replaced. Some desired were able to benefit by selling the parts of the older vehicle and even helped the collectors.
How to Get Cash for My Car Now
While the auto industry offered a sales boost and industry is waiting for a lot of inefficient vehicles replacing them with fuel-efficient cars.
Dealer Trade Assist – This program was offered by Ford, GM, FCA and other automakers. It used to provide upto $1,500 for trade-ins that are of specific age and still running, provided the consumer purchases a particular model that the automaker is trying to move.
Deferred Payment – The banks, automakers and dealers have provided various deals like 120 day payment deferral with 0% special financing on its 2019 models and some 2020 models.
Sell Privately – Remember, if you don’t want to wait for a Cash for Clunkers program to open up, you can always sell your car yourself. We have guides to walk you through this process for states like California and Florida.
These are the few things that you must know about the Cash for Clunkers program. If the government reinstated this program again then it would definitely help you and the country’s economy.