Entries Tagged 'buying a car' ↓

Thanks to the kindness of the folks at Edmunds, we’ve just added a list of current new car rebates. This is something that’s been often requested and discussed at length. Until now, we lacked the resources to maintain the data.

Now that the federal government’s cash for clunkers program is a fading memory, a new car rebate or incentive can make or break a purchase. With a little help from the factory, the qualification factors can tilt in your favor.

Hold onto your hats (and your wallets). Uncle Sam’s Cash for Clunkers program is roaring down the track. The federal government’s Cash Allowance Rebate System (CARS), has set aside $1,000,000,000 to jump start ailing automotive sales by giving individual consumers $3,500 or $4,500 credits towards the purchase of a new vehicle with a higher fuel economy rating.

The CARS program is set to run until November 30th of this year, or until the funds are exhausted. Congress may or may not renew the program when the allocation runs out.

The Cash for Clunkers rules include eligibility requirements for both the surrendered and new vehicles. Unfortunately, the vast majority of folks will not qualify.

The car, truck, or SUV that’s turned in must meet the following requirements:
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The time to retire old paint might be just around the corner. If your old car is rated at 18 miles per gallon (MPG) or less, you might be eligible to receive up to $4500 towards the purchase of a new (and perhaps only slightly) more fuel efficient car. To be eligible for the new Cash for Clunkers program as proposed by the House of Representatives, new cars must be rated at a minimum of just 22 miles per gallon (MPG) combined.

What’s next … members of Congress appearing on car commercials?

More as this develops …

2009 Cars that Achieve 22 MPG Combined or Higher
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There’s an unfortunate wrinkle in the Federal Cash for Clunkers proposals. As proposed, the programs discriminate against large families.

The Clean Car Rebate Act of 2009 (H.R.1808) offers a modest sliding scale of rebates for vehicles that have a combined average of 28 miles per gallon (MPG) or more.

That’s all well and good for folks that can get by with a vehicle that fits into those criteria. A compact four passenger car should have no problem averaging 28 MPG.

But what about families that need to transport five or more people safely and comfortably? How many vehicles qualify for the program?

Under this proposal, large families will not receive funds to purchase a fuel-efficient vehicle that fits their needs … because the criteria for qualification is flawed.

One solution might be to fund swaps with a specific vehicle-by-vehicle MPG improvement qualification threshold. For example, a 6 MPG improvement threshold might provide a rebate for folks swapping a Ford Expedition for a Ford Flex.

Take a look at the vehicles that currently qualify for H.R.1808 (as initially proposed) and envision how six people would fit into any one of them. Then, consider how many of these vehicles are built in the United States.

This bill while well-intentioned, needs tweaks …
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In a letter to the American people yesterday, President Obama weighed in heavily on the Cash for Clunkers proposals that are currently floating through the halls of Congress.

… we will also find ways to increase car sales while modernizing our auto fleet. Such fleet modernization programs, which provide a generous credit to consumers who turn in old, less fuel-efficient cars and purchase cleaner cars, have been successful in boosting auto sales in a number of European countries. I want to work with Congress to identify parts of the Recovery Act that could be trimmed to fund such a program, and make it retroactive starting immediately.

The Consumer Assistance to Recycle and Save (CARS) Act (H.R.1550) seeks to reward new car buyers with a $3,000 to $5,000 bounty to dump their old gas guzzlers and purchase a more fuel-efficient car or truck.

Opposition to the CARS act has come from sources including the Specialty Equipment Manufacturers Association (SEMA), and a number of foreign auto manufacturers. Nevertheless, with the Obama administration now voicing strong support for the program, the adoption of a federal Cash for Clunkers program seems to be inevitable.

Ready or not America, it’s (almost) time to buy a car.

Yet another (and less generous) proposal surfaced on 3/31.

Introduced by Rep. Jackie Speier and cosponsored by Rep. Mike Thompson, the “Clean Car Rebate Act of 2009″ (H.R.1808) seeks to “amend the Internal Revenue Code of 1986 to provide for consumer rebates for purchases of certain new passenger motor vehicles.” The rebate will initially apply to vehicles purchased in 2009 and 2010, with amounts tied to fuel-efficiency. Requirements will be tightened up incrementally, year to year, with years subsequent to 2010 subject to further increases in fuel economy.

There are plenty of questions that remain to be answered. If this country is to enact a variation of one of these plans, ultimate success may be tied to the ability to use the government rebate as a down payment on the new vehicle.

That’s right … no money down.