Vehicles That Qualify
Everybody loves to hear about free money. With the new program cash for clunkers, people can now trade in their old cars in exchange for money and new fuel efficient cars. The main purpose of the bill is to trade in your clunker, which is an old model of car that is not fuel efficient, in exchange for cash. It is a way in minimizing the cost of every people on their fuel expenses. Cash for clunkers is not taxable. However, there may be some tax consequences for those with a business or under certain circumstances. Types of cars eligible for the program can be both old and new cars.
Older trade in vehicles must be in drivable condition, have been continuously insured by the same owner for at least one year, manufactured in model year 1984 or later and must have a combined fuel economy of 18 mpg or less.
New vehicles may be divided into four categories, the passenger cars, Light duty trucks, large light duty trucks, and work trucks.
New passenger cars that are eligible for the program must have at least a mileage of 22 mpg. If the new car is at least 4mpg or higher than the old vehicle the total discount will be worth $3,500 and if the mileage of the new car is at least 10mpg or higher than the old vehicle, the total discount would be $4,500.
New light trucks or SUV's with a mileage of at least 18mpg are eligible for the program. If the mileage of the SUV or the new truck were at least 2mpg higher than the old truck, the total discount would be worth $3,500. If the mileage of the SUV or new truck is at least 5mpg than the old truck, the total discount will be worth $4,500.
Pick up trucks and vans weighing about 6,000 to 8,000 pounds are eligible for the program if the mileage is at least 15mpg. If the mileage of the new truck is at least 1mp higher than the new truck, the total discount will be worth $3,500. If the mileage of the new truck is at least 2mpg higher than the old truck, the total discount will be worth $4,500.
Work trucks are defined as a cargo van or a pick-up truck weighing from 8,500 - 10,000 pounds. Consumer who wants to trade in a pre-20002 work truck will receive a discount worth $3,500 for a new work truck in a smaller or same weight class. Discounts are limited only up to 7.5% of the total funds. Consumers can also trade down and receive $3,500 voucher for trading an older truck and purchasing a light-duty truck weighing from 6,000-8,500 pounds.
Searching for specific cars eligible for the program can be found online. There are tons of result regarding the type of cars and the models of cars that are qualified for the cash for clunkers program. These lists of cars are based on federal rules and are not an official lists.
