The "Cash for Clunkers" program is finally becoming law.
Once President Obama signs it, thousands of car owners may be eligible for a voucher for as much as $4500, That they can use toward the purchase of a new car.
It's potentially a great deal, if you qualify. Unfortunately, theres a chance your old car won't qualify.
Who is EligibleOwn a beat up minivan? How about a pickup truck with a rusted bed? Or a truck that has sat in your yard for years?
If so, you -- like Teresa Galloway -- may be wondering if your vehicle qualifies for the new cash for clunkers program.
Teresa, who we found filling up her old Chevy at a Shell station, said "it all depends how much they'll give for an old car."
Teresa said she'd love to get $3,500 or $4,500 for her 1994 Chevy Corsica, but said if she can use it only to buy a new car, it won't help her.
"For a used car, maybe. Not a new car, no," she said.
Unfortunately for Teresa, it doesn't apply to used cars...as the goal is to boost new car sales.
What Qualifies, What Doesn'tThe ideal vehicles the government considers clunkers and would like to give you cash to get rid of: the millions of mid 90's SUV's still on the road...along with fulll size pickup trucks from the 80's and 90s, many of which get only 13 mpg.
You can receive a voucher for $4,500 if your new car gets 10 miles more per gallon than your old car. If your new car gets between 2 and 9 miles per gallon more, then you qualify for a $3,500 voucher.
The key provision: The old car must get 18 mpg or less, according to the EPA. Click the above link to learn your car's average mileage.
* For that reason, most small and midsized cars won't qualify. No Ford Escorts, Chevy Cavaliers, Dodge Neons, Toyota Corrollas, or other small cars commonly considered "clunkers" need apply: their EPA mileage numbers are too high.
* In addition, it must be a 1984 model or newer, which prevents junking "classics," like early Mustangs and Camaros.
* One other caveat: The car must have been insured for the past year, which prevents scavengers from running to salvage lots and turning in junkyard cars for money.
As for Teresa, it turns out the EPA says her Corsica gets 20 miles per gallon, so it doesn't qualify.
More Facts: Cash for ClunkersBottom LineCritics say the plan benefits high income familes more than low income families, who cant afford a new car, even with the voucher. It cannot be used for a used car.
But the goal is eliminate guzzlers and jump start new car sales. And thats what it does.
We'll have more details on how to get a voucher once the President signs the bill. It is expected to be valid for one year....meaning you can get a voucher from this July till July 2010. It will not be retroactive, however, to cars bought earlier this year.
So if you have what is considered a guzzler, and you are interested in a new car, give the program a look, so you don't waste your money.
