The Cash for Clunkers program has passed the Senate and now the bill will go to President Obama to sign it into law. The Transportation Department will then reportedly have one month to figure out how the Cash for Clunkers program will be run. Since Congress reduced funding for the program from $4 billion to just $1 billion, it's expected that the money will run out long before the program is scheduled to end on November 1.
The program's eligibility rules are stiff. Trade-in vehicles must be in drivable condition, insured by the same owner for the last year, manufactured in 1984 or later and have a combined EPA fuel economy rating of 18 mpg or less. The “insured by the same owner for the last year” rule means that buyers who bought a “clunker” in anticipation of this legislation are out of luck. The good news is that because many wholesalers bought “clunkers” to resell to people looking to take advantage of this program, who will not be able to do so, now is the perfect time to buy that “classic” car for your 16-year-old.
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