The government soon may be handing out vouchers for new cars. Cash giveaways have spurred trade-ins in Europe. Will they help in the U.S.?
The government really wants to get the U.S. automobile industry into gear. It has already stepped in to bail out carmakers with money, loans, and special bankruptcy treatment. Now it seems ready to dole out $1 billion to consumers in the form of vouchers to buy newer, more-efficient vehicles under the Cash for Clunkers program.
Proponents say it will modernize the U.S. vehicle fleet, getting rid of older cars that pollute more, are less safe, and burn more gas. More important to many, the money could save jobs in the auto sector, from parts suppliers to dealers, by lifting new car sales by at least 250,000 this year. One sign of the measure's popularity: The Senate passed it on a 91-5 vote.
President Barack Obama had repeatedly urged Congress to pass the bill and is expected to sign it by July 1, its proposed effective date.
Clunker qualifications
Still, there are critics. Some say the eligibility requirements are too stringent for the program to have much effect. Others say the government has already spent too much to help the car industry. There are also questions about whether the folks driving those clunkers can afford brand-new wheels. "It is just too big of a price tag for the minimal results it would produce," said Senator Ben Nelson of Nebraska, the only Democrat to vote against the act.
Here are the basics:
• Vouchers of either $3,500 or $4,500 will be given to people who trade in an older vehicle to buy a new one.
• The trade-in, or clunker, must be no older than 25 years, have average gas mileage of less than 18 miles per gallon, and have been owned by the seller for at least a year.
• The new car must cost less than $45,000 and get more than 22 mpg. To get the higher voucher, the new vehicle must also average 10 more miles per gallon than the old one.
• Trucks—SUVs, pickups, and minivans—have different rules. An improvement of at least 2 mpg between the old and new vehicles qualifies for $3,500; 5 mpg or more entitles buyers to $4,500.
• There are no income limits on voucher recipients, nor restrictions on where the new cars are made.
+ "Cash for Clunkers" Law Signed by Obama
+ Cash for Clunkers Rebate Eligible Vehicles List by Edmunds
+ Cash For Clunkers Car Buying Stimulus Bill
+ BMW Used Cars Eligible for 'Cash For Clunkers'
+ Cash for Clunkers: Eligible Used Cars List Under $3,500
Germany instituted a scrappage program earlier this year, followed by France and Britain. While car sales are down significantly from prerecession 2007 totals, sales in those countries have risen since the subsidies began. There's little question that Detroit could use a similar boost. Americans are on track to buy 9.5 million new vehicles this year, down 40% from 16.1 million in 2007.
Edmunds.com CEO Jeremy Anwyl says, however, that carmakers and buyers alike will be disappointed. He argues that the industry needs help raising sales by 3 million vehicles or more, not 250,000 to 400,000. "The scale is just wrong," he says.
Anwyl urges consumers to read the fine print. The program is not a rebate or a tax credit, though, based on public comments at Edmunds.com, he says many people think so. "Don't get too excited," Anwyl says. "Chances are you're not eligible."
Showing posts with label 2009 Car Incentives. Show all posts
Showing posts with label 2009 Car Incentives. Show all posts
Wednesday, June 24, 2009
"Cash for Clunkers" Law Signed by Obama
A $1 billion "cash for clunkers " bill was signed into law by President Obama late Wednesday, but the specifics of the plan are still being worked out, according to the U.S. Department of Transportation. The law is designed to get consumers into more fuel-efficient vehicles.
Under the law, consumers can get up to $4,500 toward a new more fuel-efficient car when they trade in an older model with worse gas mileage, under the new system.
The formal name of the program is the Car Allowance Rebate System (CARS). "Under the CARS program, NHTSA [National Highway Traffic Safety Administration] is charged with rules for program implementation in 30 days," according to the U.S. Department of Transportation's Web site. "You may want to contact your local dealer in mid-July."
Consumers can sign up for updates as the program rolls out to car buyers and dealers. The program ends on November 1, 2009. It is designed to stimulate the auto industry and act as an environmental aid, since it is intended to encourage consumers who own an older gas guzzler to purchase or lease a new, fuel-efficient vehicle.
The National Automobile Dealers Association is telling its dealers to wait until the rules are out in July before participating.
According to the U.S. Department of Transportation, the trade-in vehicle must meet these requirements to qualify for the program:
+ Cash For Clunkers Car Buying Stimulus Bill
+ BMW Used Cars Eligible for 'Cash For Clunkers'
+ Cash for Clunkers: Eligible Used Cars List Under $3,500
The cash-for-clunkers provision was passed as part of a larger $106 billion military spending bill.
Under the law, consumers can get up to $4,500 toward a new more fuel-efficient car when they trade in an older model with worse gas mileage, under the new system.
The formal name of the program is the Car Allowance Rebate System (CARS). "Under the CARS program, NHTSA [National Highway Traffic Safety Administration] is charged with rules for program implementation in 30 days," according to the U.S. Department of Transportation's Web site. "You may want to contact your local dealer in mid-July."
Consumers can sign up for updates as the program rolls out to car buyers and dealers. The program ends on November 1, 2009. It is designed to stimulate the auto industry and act as an environmental aid, since it is intended to encourage consumers who own an older gas guzzler to purchase or lease a new, fuel-efficient vehicle.
The National Automobile Dealers Association is telling its dealers to wait until the rules are out in July before participating.
According to the U.S. Department of Transportation, the trade-in vehicle must meet these requirements to qualify for the program:
- The vehicle must be less than 25 years old on the trade-in date.
- Only the purchase or lease of a new vehicle qualifies.
- Trade-in vehicles must get 18 miles per gallon or less, although the law notes "some very large pickup trucks and cargo vans have different requirements."
- Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in.
- "You don't need a voucher; dealers will apply a credit at purchase."
+ Cash For Clunkers Car Buying Stimulus Bill
+ BMW Used Cars Eligible for 'Cash For Clunkers'
+ Cash for Clunkers: Eligible Used Cars List Under $3,500
The cash-for-clunkers provision was passed as part of a larger $106 billion military spending bill.
Monday, June 22, 2009
2010 Ford Taurus Incentives to Launch in September 2009
Ford Motor Co. lavished new technology and features on the revamped 2010 Taurus. The nameplate now is touted as the brand's flagship.
But despite the big changes, Ford is launching the car with incentives.
"The marketplace is still very tentative," Mike Crowley, Ford's marketing manager for North American cars and crossovers, said here at a media event. "Even a great product, you want to launch it and get it off to a good start."
Although the re-engineered and restyled car isn't expected at dealerships until August, an early-order incentive is under way -- $500 to customers who take delivery by Sept. 1. Ford also is advertising an additional $1,000 cash rebate on all but the base model Taurus. Lease incentives are available in markets where leasing is strong, Crowley said.
But as Ford marketers try to revive the once-vaunted Taurus nameplate, they intend to avoid the large incentives that have long plagued the car. Rebates of $3,000 and $4,000both occasionally appeared on the previous-generation Taurus that sold commonly to rental fleets.
Ford is trying to generate consumer excitement for the 2010 model by staging 450 premiere nights at dealerships around the country during a six-week period that began May 28.
Another stigma Ford aims to avoid with the 2010 model: the rent-a-car reputation that afflicted the Taurus for most of this decade, when more than half of the car's sales went were to rental fleets.
Ford will sell the 2010 model to rental companies but intends to keep the rental mix in the single- or low-double-digit percentages, Crowley said. If mix is limited, Rental fleets can be a good way to expose potential customers to new models.
+ 2010 Ford Taurus SHO Road Test
Gallery: 2010 Ford Taurus SHO
But despite the big changes, Ford is launching the car with incentives.
"The marketplace is still very tentative," Mike Crowley, Ford's marketing manager for North American cars and crossovers, said here at a media event. "Even a great product, you want to launch it and get it off to a good start."
Although the re-engineered and restyled car isn't expected at dealerships until August, an early-order incentive is under way -- $500 to customers who take delivery by Sept. 1. Ford also is advertising an additional $1,000 cash rebate on all but the base model Taurus. Lease incentives are available in markets where leasing is strong, Crowley said.
But as Ford marketers try to revive the once-vaunted Taurus nameplate, they intend to avoid the large incentives that have long plagued the car. Rebates of $3,000 and $4,000both occasionally appeared on the previous-generation Taurus that sold commonly to rental fleets.
Ford is trying to generate consumer excitement for the 2010 model by staging 450 premiere nights at dealerships around the country during a six-week period that began May 28.
Another stigma Ford aims to avoid with the 2010 model: the rent-a-car reputation that afflicted the Taurus for most of this decade, when more than half of the car's sales went were to rental fleets.
Ford will sell the 2010 model to rental companies but intends to keep the rental mix in the single- or low-double-digit percentages, Crowley said. If mix is limited, Rental fleets can be a good way to expose potential customers to new models.
+ 2010 Ford Taurus SHO Road Test
Gallery: 2010 Ford Taurus SHO
BMW Used Cars Eligible for 'Cash For Clunkers'
Cash for Clunkers car buyers can shop for BMW cars under the new bill’s provisions. Certain BMW cars meet the fuel efficiency requirements to be eligible for the Cash for Clunkers voucher program. Under the new bill, consumers would receive a voucher worth up to $4,500 for trading in their current clunker for a new, more fuel efficient car.
According to the official Cash for Clunkers Facts websites, the following BMW cars qualify for the Cash for Clunkers trade-in program:
• 128
• 135
• 328
• 335d
• 528
In order to qualify, total combined city and highway MPG estimates must equal 44. To see the complete list of BMW cars and their MPG estimates.
Cash for Clunkers received the green light on June 18th to be added to the war time funding bill, with an initial $1 billion reserved for the new bill. President Obama has already said he would sign the bill into law, with action expected to be completed by July.
Consumers looking for Cash for Clunkers BMW participating dealers in their state can visit: http://horisly.blogspot.com/2009/06/cash-for-clunkers-eligible-used-cars.html
* Cash For Clunkers Car Buying Stimulus Bill
* Cash for Clunkers Rebate Eligible Vehicles List by Edmunds
* Cash for Clunkers: Eligible Used Cars List Under $3,500
* 'Cash for Clunkers' Not Much Help for Sales or Environment?
* New Vehicles Tax Credit for Delawareans in 2009
* 'Cash for Clunkers' Incentives Plan Approved by House
* Cash for Clunkers Plan: How it Work - (Q & A)
* Cash-For-Clunkers: Pickup Trucks Buyer to Be Winner
* "Cash for Clunkers' Incentives Program to Buy New Car
The website also provides answers to frequently asked questions about the bill’s provisions and helps consumers determine whether or not their car would qualify for the trade-in program. The popular FAQ page is located at http://horisly.blogspot.com/2009/06/cash-for-clunkers-car-buying-stimulus.html
According to the official Cash for Clunkers Facts websites, the following BMW cars qualify for the Cash for Clunkers trade-in program:
• 128
• 135
• 328
• 335d
• 528
In order to qualify, total combined city and highway MPG estimates must equal 44. To see the complete list of BMW cars and their MPG estimates.
Cash for Clunkers received the green light on June 18th to be added to the war time funding bill, with an initial $1 billion reserved for the new bill. President Obama has already said he would sign the bill into law, with action expected to be completed by July.
Consumers looking for Cash for Clunkers BMW participating dealers in their state can visit: http://horisly.blogspot.com/2009/06/cash-for-clunkers-eligible-used-cars.html
* Cash For Clunkers Car Buying Stimulus Bill
* Cash for Clunkers Rebate Eligible Vehicles List by Edmunds
* Cash for Clunkers: Eligible Used Cars List Under $3,500
* 'Cash for Clunkers' Not Much Help for Sales or Environment?
* New Vehicles Tax Credit for Delawareans in 2009
* 'Cash for Clunkers' Incentives Plan Approved by House
* Cash for Clunkers Plan: How it Work - (Q & A)
* Cash-For-Clunkers: Pickup Trucks Buyer to Be Winner
* "Cash for Clunkers' Incentives Program to Buy New Car
The website also provides answers to frequently asked questions about the bill’s provisions and helps consumers determine whether or not their car would qualify for the trade-in program. The popular FAQ page is located at http://horisly.blogspot.com/2009/06/cash-for-clunkers-car-buying-stimulus.html
Wednesday, June 17, 2009
Opel Incentives June 2009 to Boost Sales, Save Jobs
General Motors Corp.’s European Opel unit, rescued by German state aid last month, may have to slash prices by 40 percent to sell enough cars and fulfill a pledge to save jobs in the country.
“The market will be a combination of struggling brands and cheap cars,” if Opel gets restructured as planned, said Simon Empson, managing director of Broadspeed.com, a U.K. online car retailer. He predicts the carmaker, which operates Opel in Europe and Vauxhall in the U.K., will have to discount models by “40 percent or more” to meet its sales targets.
Canadian auto-parts maker Magna International Inc. is leading the group negotiating to buy the GM unit. Because of the structure of the deal, the new owners may be more interested in boosting output than generating profit, said Tim Adam, a corporate finance professor at Humboldt University in Berlin. The company agreed to save German jobs in return for 1.5 billion euros ($2.1 billion) in short-term loans from the government.
Ford Motor Co. and PSA Peugeot Citroen may be drawn into a price war if a Magna-led Opel pushes discounts, stoking concern the European auto industry will struggle to recover from the worst recession since World War II because consumers will become hooked on markdowns.
“Everybody is looking to generate cash, and the quickest but not necessarily the most effective way is to discount,” said Stefan Bratzel, director of the Center of Automotive Research at the University of Applied Sciences in Bergisch Gladbach, Germany. “Peugeot, Renault and Ford need to make sure they don’t fall by the wayside.”
Production Curbs
European automakers probably will build 17.7 million cars this year, or 10.4 million fewer than their factories are capable of churning out, according to IHS Global Insight. GM’s European operations may use less than 62 percent of production capacity this year, according to estimates from the research firm.
Opel aims to sell 2 million cars a year once it can market vehicles worldwide, perhaps in about five years, according to Klaus Franz, Opel’s top labor leader. That would require the carmaker to boost capacity by more than 200,000 vehicles. The current factories can produce 1.76 million cars a year, according to Global Insight.
“We reject the assertion that Opel has to reduce prices by 40 percent to run factories at full capacity,” Frank Klaas, a spokesman for the carmaker, said by telephone. “This is complete nonsense.”
Job Protection
GM, the Detroit automaker selling Opel while reorganizing in bankruptcy, employs half its European workforce in Germany, and Aurora, Ontario-based Magna has assured officials that all four factories in the country will remain open. The deal depends on a total of 4.5 billion euros in loans from European governments.
Magna’s offer, with financial backing from Moscow-based OAO Sberbank, includes a pledge to expand in Russia, further adding to speculation that Opel will push output with cheaper cars. The Canadian company beat Fiat SpA in becoming preferred bidder, in part because the Italian carmaker wanted to trim production capacity at Opel and Vauxhall.
The interests of the new Opel ownership group may lead to decisions that extend the carmaker’s losses, Humboldt University’s Adam said.
“None of the new owners have strong incentives to maximize profits in the years to come,” he said. “Rather, the new owners have incentives to increase costs.”
Magna will benefit directly from sales of parts to Opel, while GM will get patent fees and technology royalties for each car sold, Adam said. Sberbank may gain from a planned Russian carmaking partnership with OAO GAZ, which the lender also has financed, he said.
GM in Russia
The sale of Opel won’t alter GM’s plans to start production of the Chevrolet Cruze this summer at a St. Petersburg factory, Hans-Juergen Michel, GM Russia chief, told reporters today.
Magna, which grew from founder Frank Stronach’s one-man tool-and-die shop to become one of the world’s top auto-parts suppliers, insists profit at Opel is a priority. Chief Executive Officer Siegfried Wolf said June 3 that unprofitable companies are “not good for society.” Magna spokesman Daniel Witzani declined to comment for this story.
And Magna may still close Opel plants. Labor leader Franz said June 3 that there would be tough negotiations to keep factories open in Luton, England, and Antwerp, Belgium. The deal may lead to as many as 11,000 jobs cuts, including 2,600 in Germany, according to German officials.
‘Looking for Margins’
“No one as smart and entrepreneurial as Frank Stronach is going to make that kind of a move without looking for margins,” said Tim Urquhart, an analyst with Global Insight in London.
Magna will hold 20 percent and Sberbank will own 35 percent of Opel, based in the Frankfurt suburb of Ruesselsheim. Workers will receive a 10 percent stake in exchange for $1.2 billion in concessions, and GM will retain about 35 percent. GM expects a final contract by July.
Peugeot expects European Union authorities will “remain vigilant to ensure that European competition rules are fully respected,” spokesman Pierre-Olivier Salmon said by telephone. He declined to comment on the potential impact of the deal on pricing. John Gardiner, a spokesman for Ford in Cologne, Germany, declined to comment on pricing.
Ford is wary that government loans may give Opel an unfair advantage, saying it is “imperative” German aid to Opel does “not breach EU state aid, internal market rules or competition policy.”
Ford Wants Fairness
“It is vital that a level playing field is enforced to ensure a fair and equitable distribution of any governmental assistance,” the Dearborn, Michigan-based automaker said in a statement in response to questions about Magna’s plans.
Price cuts could reverse some steps taken by carmakers to weather the recession. Ford, the top car retailer in the U.K., has raised prices in Britain twice this year by a total of 8.6 percent. Opel raised prices in the U.K. almost 5 percent in February. Both carmakers cited currency fluctuations in addition to a slumping market.
Since the Opel deal, Peugeot Citroen, the continent’s second-largest carmaker, has said it’s open to partnerships to spur growth amid the worst auto-market slump in 15 years. The expected Opel purchase by Magna makes size more important in maintaining profits, Chairman Thierry Peugeot said June 1.
Ultimately, Opel will have to be able to finance itself, because the planned state funding isn’t enough to make Opel a viable, independent carmaker, said Bergisch Gladbach’s Bratzel.
While competitors may cry foul if a state-funded Opel cuts prices too aggressively, Magna’s lack of experience in selling cars, especially the complex relationship between new-car prices, financing rates and used-car values, could force Opel into discounts, Broadspeed’s Empson said.
“Magna’s understanding of new- and used-car markets could probably be written on the back of a cigarette package,” he said.
“The market will be a combination of struggling brands and cheap cars,” if Opel gets restructured as planned, said Simon Empson, managing director of Broadspeed.com, a U.K. online car retailer. He predicts the carmaker, which operates Opel in Europe and Vauxhall in the U.K., will have to discount models by “40 percent or more” to meet its sales targets.
Canadian auto-parts maker Magna International Inc. is leading the group negotiating to buy the GM unit. Because of the structure of the deal, the new owners may be more interested in boosting output than generating profit, said Tim Adam, a corporate finance professor at Humboldt University in Berlin. The company agreed to save German jobs in return for 1.5 billion euros ($2.1 billion) in short-term loans from the government.
Ford Motor Co. and PSA Peugeot Citroen may be drawn into a price war if a Magna-led Opel pushes discounts, stoking concern the European auto industry will struggle to recover from the worst recession since World War II because consumers will become hooked on markdowns.
“Everybody is looking to generate cash, and the quickest but not necessarily the most effective way is to discount,” said Stefan Bratzel, director of the Center of Automotive Research at the University of Applied Sciences in Bergisch Gladbach, Germany. “Peugeot, Renault and Ford need to make sure they don’t fall by the wayside.”
Production Curbs
European automakers probably will build 17.7 million cars this year, or 10.4 million fewer than their factories are capable of churning out, according to IHS Global Insight. GM’s European operations may use less than 62 percent of production capacity this year, according to estimates from the research firm.
Opel aims to sell 2 million cars a year once it can market vehicles worldwide, perhaps in about five years, according to Klaus Franz, Opel’s top labor leader. That would require the carmaker to boost capacity by more than 200,000 vehicles. The current factories can produce 1.76 million cars a year, according to Global Insight.
“We reject the assertion that Opel has to reduce prices by 40 percent to run factories at full capacity,” Frank Klaas, a spokesman for the carmaker, said by telephone. “This is complete nonsense.”
Job Protection
GM, the Detroit automaker selling Opel while reorganizing in bankruptcy, employs half its European workforce in Germany, and Aurora, Ontario-based Magna has assured officials that all four factories in the country will remain open. The deal depends on a total of 4.5 billion euros in loans from European governments.
Magna’s offer, with financial backing from Moscow-based OAO Sberbank, includes a pledge to expand in Russia, further adding to speculation that Opel will push output with cheaper cars. The Canadian company beat Fiat SpA in becoming preferred bidder, in part because the Italian carmaker wanted to trim production capacity at Opel and Vauxhall.
The interests of the new Opel ownership group may lead to decisions that extend the carmaker’s losses, Humboldt University’s Adam said.
“None of the new owners have strong incentives to maximize profits in the years to come,” he said. “Rather, the new owners have incentives to increase costs.”
Magna will benefit directly from sales of parts to Opel, while GM will get patent fees and technology royalties for each car sold, Adam said. Sberbank may gain from a planned Russian carmaking partnership with OAO GAZ, which the lender also has financed, he said.
GM in Russia
The sale of Opel won’t alter GM’s plans to start production of the Chevrolet Cruze this summer at a St. Petersburg factory, Hans-Juergen Michel, GM Russia chief, told reporters today.
Magna, which grew from founder Frank Stronach’s one-man tool-and-die shop to become one of the world’s top auto-parts suppliers, insists profit at Opel is a priority. Chief Executive Officer Siegfried Wolf said June 3 that unprofitable companies are “not good for society.” Magna spokesman Daniel Witzani declined to comment for this story.
And Magna may still close Opel plants. Labor leader Franz said June 3 that there would be tough negotiations to keep factories open in Luton, England, and Antwerp, Belgium. The deal may lead to as many as 11,000 jobs cuts, including 2,600 in Germany, according to German officials.
‘Looking for Margins’
“No one as smart and entrepreneurial as Frank Stronach is going to make that kind of a move without looking for margins,” said Tim Urquhart, an analyst with Global Insight in London.
Magna will hold 20 percent and Sberbank will own 35 percent of Opel, based in the Frankfurt suburb of Ruesselsheim. Workers will receive a 10 percent stake in exchange for $1.2 billion in concessions, and GM will retain about 35 percent. GM expects a final contract by July.
Peugeot expects European Union authorities will “remain vigilant to ensure that European competition rules are fully respected,” spokesman Pierre-Olivier Salmon said by telephone. He declined to comment on the potential impact of the deal on pricing. John Gardiner, a spokesman for Ford in Cologne, Germany, declined to comment on pricing.
Ford is wary that government loans may give Opel an unfair advantage, saying it is “imperative” German aid to Opel does “not breach EU state aid, internal market rules or competition policy.”
Ford Wants Fairness
“It is vital that a level playing field is enforced to ensure a fair and equitable distribution of any governmental assistance,” the Dearborn, Michigan-based automaker said in a statement in response to questions about Magna’s plans.
Price cuts could reverse some steps taken by carmakers to weather the recession. Ford, the top car retailer in the U.K., has raised prices in Britain twice this year by a total of 8.6 percent. Opel raised prices in the U.K. almost 5 percent in February. Both carmakers cited currency fluctuations in addition to a slumping market.
Since the Opel deal, Peugeot Citroen, the continent’s second-largest carmaker, has said it’s open to partnerships to spur growth amid the worst auto-market slump in 15 years. The expected Opel purchase by Magna makes size more important in maintaining profits, Chairman Thierry Peugeot said June 1.
Ultimately, Opel will have to be able to finance itself, because the planned state funding isn’t enough to make Opel a viable, independent carmaker, said Bergisch Gladbach’s Bratzel.
While competitors may cry foul if a state-funded Opel cuts prices too aggressively, Magna’s lack of experience in selling cars, especially the complex relationship between new-car prices, financing rates and used-car values, could force Opel into discounts, Broadspeed’s Empson said.
“Magna’s understanding of new- and used-car markets could probably be written on the back of a cigarette package,” he said.
Tuesday, June 16, 2009
Cash for Clunkers: Eligible Used Cars List Under $3,500
As Congress debates cash-for-clunkers legislation, we reviewed our data to determine what worn out old cars make the most sense to junk and what qualifying cars we think would make better replacements—featured in another post.
The used cars we’ve listed are the newest vehicles likely to be available for less than $3,500, the minimum voucher value. For this to be worthwhile to the consumer, the vehicle’s trade-in value would need to be less than the voucher. Older versions of these vehicles are likely to be worth less, making the vouchers even more appealing. Many of the models have mechanical twins sold by another brand that may qualify, but we have not listed them here.
Keep in mind that spending money on a new car can buy you more than just improved fuel economy. A new car will have a warranty to cover repairs. And a decade (or more) of improvement in safety and reliability.
The past 10 years have brought big gains in safety engineering and technology, including better structure to cushion the impact while maintaining the integrity of the occupant space and safety features such as front-side and curtain air bags and electronic stability control (ESC). In particular, many older SUVs have a higher inherent risk of rollover than newer car-based designs with ESC.
In addition to casting the spotlight on eligible clunkers, we will soon present a list of Consumer Reports recommended vehicles that could serve as a replacement. To see a complete list of Consumer Reports recommended models check out our ratings, available to online subscribers.
(Via consumerreports.org.)
The used cars we’ve listed are the newest vehicles likely to be available for less than $3,500, the minimum voucher value. For this to be worthwhile to the consumer, the vehicle’s trade-in value would need to be less than the voucher. Older versions of these vehicles are likely to be worth less, making the vouchers even more appealing. Many of the models have mechanical twins sold by another brand that may qualify, but we have not listed them here.
Keep in mind that spending money on a new car can buy you more than just improved fuel economy. A new car will have a warranty to cover repairs. And a decade (or more) of improvement in safety and reliability.
The past 10 years have brought big gains in safety engineering and technology, including better structure to cushion the impact while maintaining the integrity of the occupant space and safety features such as front-side and curtain air bags and electronic stability control (ESC). In particular, many older SUVs have a higher inherent risk of rollover than newer car-based designs with ESC.
In addition to casting the spotlight on eligible clunkers, we will soon present a list of Consumer Reports recommended vehicles that could serve as a replacement. To see a complete list of Consumer Reports recommended models check out our ratings, available to online subscribers.
| |
| Make | Model | Older than model year | EPA combined mpg | Category |
| Cadillac | DeVille | 1994 | 17 | Car |
| Cadillac | Eldorado | 1994 | 17 | Car |
| Cadillac | Seville | 1993 | 17 | Car |
| Jaguar | XJ6 | 1996 | 18 | Car |
| Lincoln | Continental | 1999 | 18 | Car |
| Lincoln | LS V8 | 2001 | 17 | Car |
| Lincoln | Town Car | 1996 | 18 | Car |
| Mercury | Grand Marquis | 1998 | 18 | Car |
| Oldsmobile | Aurora | 1998 | 18 | Car |
| Pontiac | Firebird | 1992 | 18 | Car |
| Chevrolet | Astro | 2000 | 16 | Truck |
| Chevrolet | Blazer 2dr 4WD | 1995 | 16 | Truck |
| Chevrolet | Blazer 4dr 4WD | 1999 | 16 | Truck |
| Chevrolet | S10 4WD | 1997 | 16 | Truck |
| Chevrolet | Silverado 4WD | 1998 | 16 | Truck |
| Dodge | Dakota | 2001 | 14 | Truck |
| Dodge | Durango | 1998 | 13 | Truck |
| Dodge | Ram 4WD | 1994 | 12 | Truck |
| Dodge | Grand Caravan | 2000 | 18 | Truck |
| Ford | Aerostar | 1996 | 17 | Truck |
| Ford | F150 V8 4WD | 1995 | 14 | Truck |
| Ford | Expedition 4WD | 2000 | 17 | Truck |
| Ford | Explorer 4WD | 1999 | 15 | Truck |
| Ford | Windstar | 2001 | 18 | Truck |
| Isuzu | Rodeo 4WD | 1996 | 15 | Truck |
| Jeep | Grand Cherokee V8 | 1997 | 14 | Truck |
| Jeep | Wrangler | 1995 | 16 | Truck |
| Kia | Sedona | 2002 | 16 | Truck |
| Mitsubishi | Montero Sport 4WD | 2001 | 17 | Truck |
| Nissan | Pathfinder | 1998 | 15 | Truck |
| Nissan | Quest | 1999 | 18 | Truck |
| Toyota | 4Runner 4WD | 1992 | 13 | Truck |
(Via consumerreports.org.)
'Cash for Clunkers' Not Much Help for Sales or Environment?
The “Cash for Clunkers” bill passed by the U.S. House of Representatives will not do much to benefit the environment or to stimulate vehicle sales.
That’s the conclusion drawn by analysts at Edmunds.com, a leading site for information about all things automotive.
The House bill’s provisions would allow car owners to get a voucher worth $3,500 if they trade in a vehicle getting 18 miles per gallon or less on one that gets at last 22 miles per gallon. The voucher would grow to $4,500 if the mileage of the new car were 10 mpg higher than the old vehicle.
Owners of pickup trucks, minivans and sport-utility vehicles that get 18 mpg or less could receive a $3,500 voucher if a comparable new vehicle averaged at least 2 mpg more than the old one. A $4,500 voucher could be obtained if the mileage of the new truck, minivan or SUV were at least 5 mpg higher than the older one.
To qualify, the participant would have to own the vehicle for a year and the vehicle would have to be crushed. The $4 billion program would last for one year or until the funding ran out.
“If you can get more than $4,500 for your vehicle, you’re better off selling it or trading it in without taking advantage of Cash for Clunkers rebate,” noted Karl Brauer, Edmunds editor-in-chief.
Jeremy Anwyl, Edmunds CEO, noted that “in terms of vehicles sales, the only consumers who would be interested are those willing to take no more than $4,500 for their current car and yet be financially able to buy a new one – quite a narrow profile.”
Anwyl believes the one-year ownership requirement should be eliminated. “If the goal is to remove old cars from the road, why should it matter who owns hem and for how long?” he asked.
He also believes the scrappage requirement should be eliminated so that more people could benefit from the program. He contends that if owners of newer gas guzzlers could get above a fair value for their trade-ins, more people would participate.
As to the environmental benefits, John O’Dell, Edmunds green car adviser, commented that “The idea sounds like it has good green credentials, but it isn’t likely to move the needle very far.”
He said a counterproposal advanced by California Sen. Diane Feinstein and other senators would make more sense.
Under their proposal, a car owner’s trade-in would need to get 17 mpg or less to qualify and only new cars getting at least 24 mpg would qualify. Owners would get a $2,500 voucher for a new car that gets 7 mpg more their trade-in, a $3,500 voucher for cars that have a 10-mpg improvement and a $4,500 voucher for cars that get 13 mpg more.
The senators claim their plan would save 32 percent more oil, save drivers 176 gallons of gasoline a year and cut greenhouse gas emissions by 32 percent more than the House proposal. The senators program would expire in 2012.
Some vehicles that would qualify. Edmunds compiled this sample list.
+ Cash For Clunkers Car Buying Stimulus Bill
1996 Honda Passport ; 15 mpg, $1,227 trade-in price
1997 Lincoln Continental: 18 mpg, $1,179 trade-in price
1998 Chevrolet Silverado; 14 mpg, $3,378 trade-in price
1995 Audi A6; 18 mpg, $1,261 trade-in price
1996 Toyota Land Cruiser: 13 mpg, $4,042 trade-in price
That’s the conclusion drawn by analysts at Edmunds.com, a leading site for information about all things automotive.
The House bill’s provisions would allow car owners to get a voucher worth $3,500 if they trade in a vehicle getting 18 miles per gallon or less on one that gets at last 22 miles per gallon. The voucher would grow to $4,500 if the mileage of the new car were 10 mpg higher than the old vehicle.
Owners of pickup trucks, minivans and sport-utility vehicles that get 18 mpg or less could receive a $3,500 voucher if a comparable new vehicle averaged at least 2 mpg more than the old one. A $4,500 voucher could be obtained if the mileage of the new truck, minivan or SUV were at least 5 mpg higher than the older one.
To qualify, the participant would have to own the vehicle for a year and the vehicle would have to be crushed. The $4 billion program would last for one year or until the funding ran out.
“If you can get more than $4,500 for your vehicle, you’re better off selling it or trading it in without taking advantage of Cash for Clunkers rebate,” noted Karl Brauer, Edmunds editor-in-chief.
Jeremy Anwyl, Edmunds CEO, noted that “in terms of vehicles sales, the only consumers who would be interested are those willing to take no more than $4,500 for their current car and yet be financially able to buy a new one – quite a narrow profile.”
Anwyl believes the one-year ownership requirement should be eliminated. “If the goal is to remove old cars from the road, why should it matter who owns hem and for how long?” he asked.
He also believes the scrappage requirement should be eliminated so that more people could benefit from the program. He contends that if owners of newer gas guzzlers could get above a fair value for their trade-ins, more people would participate.
As to the environmental benefits, John O’Dell, Edmunds green car adviser, commented that “The idea sounds like it has good green credentials, but it isn’t likely to move the needle very far.”
He said a counterproposal advanced by California Sen. Diane Feinstein and other senators would make more sense.
Under their proposal, a car owner’s trade-in would need to get 17 mpg or less to qualify and only new cars getting at least 24 mpg would qualify. Owners would get a $2,500 voucher for a new car that gets 7 mpg more their trade-in, a $3,500 voucher for cars that have a 10-mpg improvement and a $4,500 voucher for cars that get 13 mpg more.
The senators claim their plan would save 32 percent more oil, save drivers 176 gallons of gasoline a year and cut greenhouse gas emissions by 32 percent more than the House proposal. The senators program would expire in 2012.
Some vehicles that would qualify. Edmunds compiled this sample list.
+ Cash For Clunkers Car Buying Stimulus Bill
1996 Honda Passport ; 15 mpg, $1,227 trade-in price
1997 Lincoln Continental: 18 mpg, $1,179 trade-in price
1998 Chevrolet Silverado; 14 mpg, $3,378 trade-in price
1995 Audi A6; 18 mpg, $1,261 trade-in price
1996 Toyota Land Cruiser: 13 mpg, $4,042 trade-in price
Monday, June 15, 2009
Cash For Clunkers Car Buying Stimulus Bill
The Consumer Assistance to Recycle and Save and Act (CARS) H.R. 2751, more commonly known as Cash for Clunkers, is a proposed federal program that would encourage consumers to trade in gas-guzzlers for new cars that get better fuel economy. Modeled after several programs that have already been successfully implemented in Europe, similar legislation has already made it through the House of Representatives with a similar bill still under review in the U.S. Senate. The program would offer vouchers for consumers, allowing them to save thousands of dollars on a new-car purchase if trading in an older model and the new vehicle meets improved mpg requirements.
Edmunds.com has put together this Cash for Clunkers FAQ page to track the program as it comes to fruition, and we'll be updating this space regularly as new information becomes available.
Though the legislation hasn't yet been made into law, we've provided some details of the current version of the proposed Cash for Clunkers program passed by the House. The program would offer vouchers that allow consumers to save up to $4,500 on a new-car purchase. There are also various credits, in the form of vouchers, for trucks and work trucks.
Though information from Congress suggests that the program may stimulate anywhere from 500,000 to 1 million new-car purchases, Edmunds.com believes that it will be a struggle to reach 500,000 vehicles, since the bill has become more restrictive in recent iterations .
"A program intended to stimulate new car sales should target people in the market for a car, but the program does not," asserted Edmunds.com CEO Jeremy Anwyl. "The only people who qualify are those willing to take no more than $4,500 for their current car and immediately buy a new one — quite a narrow profile."
The proposed bill still needs to pass through the Senate (which is still trying to pass its own version of the bill), but the president has already expressed his approval of recent drafts. The House Committee on Energy and Commerce has put together a fact sheet (see below) to detail the key elements of the proposed legislation. We've followed that with an FAQ that we will continue to update as details emerge.
Committee on Energy and Commerce Fact Sheet: Cash for Clunkers
Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel-efficient cars and trucks. The program will be authorized for up to one year and provide for approximately 1 million new car or truck purchases. The agreement divides these new cars and trucks into four categories. Miles-per-gallon figures below refer to EPA "window sticker" values.
Passenger car or minivan: The old vehicle must get 18 mpg or less city/highway combined. New passenger cars or minivans with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
Light-duty truck: The old vehicle must get 18 mpg or less city/highway combined. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.
Large light-duty truck: New large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
Work truck: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pickup truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class' market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also "trade down," receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000-8,500 pounds.
s.
FAQ
How much are the vouchers worth? This will depend on the car you are turning in and the type of car you buy. In general, if the improvement in fuel economy between your old car and the car you buy is 10 mpg (combined highway mileage according to the EPA), the maximum credit will be $4,500. The requirement for improvement in fuel economy for trucks is lower. For specifics, see the above chart.
How old does my car need to be? Eligible vehicles must be manufactured in model year 1984 or later. For work trucks however, any model built before 2002 is eligible. We anticipate that most cars traded in will likely be model-year 2000 and older.
What types of vehicles qualify? In general, this bill aims to take polluting gas-guzzlers off the road. The vehicle must have a federal combined city/highway fuel economy of 18 or less miles per gallon. This means that many American-made cars and trucks will be eligible for vouchers toward the purchase of new vehicles. The categories of vehicles that will qualify fall into four classes: passenger cars, light-duty trucks, large light-duty trucks (6,000-8,500 pounds) and work trucks (8,500-10,000 pounds).
What kind of mpg will the new vehicle need to get? Different levels of improvement are required for each type of vehicle. In passenger cars, if mileage is improved by 10 mpg, the $4,500 voucher is awarded; if fuel economy is improved by only 4 mpg, the $3,500 voucher is awarded. The mileage improvement levels and voucher amounts for the different classes of trucks are listed in the chart above.
The proposal mentions a one-year time limit. Is there a cap on the number of vehicles? The bill is written to provide vouchers for 1 million purchases. Since there is a one-year limit, consumers who are interested in taking advantage of this program should track the progress of the bill and apply for a voucher as soon as funds become available. There is a special provision in the bill that requires that no more than 7.5 percent of the funds for the program shall be used for work trucks.
How long do I need to have owned the vehicle I'm trading in? The vehicle must be insured and registered in your name and in use for at least one year.
If I have an older car that is in good running condition, or a classic car, is it mandatory for me to turn it in? No. This program is completely voluntary.
What happens to the car that you trade in? The dealer is responsible for sending the vehicle to a disposal facility. The entire vehicle will be crushed or shredded so that the car does not end up on the road again.
How will this affect used-car values? Since the "clunkers" will be taken off the road, there will be fewer older vehicles in the marketplace. However, our analysts don't expect this program to drastically affect used-car values.
Where do I find the mpg numbers to see if my vehicle qualifies for the Cash for Clunkers vouchers? The EPA's combined mileage will be used. This is a combination of the highway and city mileage for vehicles. Models prior to 2008 will use the converted MPG numbers which take into account the new EPA testing methods. This information can be found on the window sticker of the car or at fueleconomy.gov.
Although many vehicles will qualify for the program, it may not always make financial sense to trade it in. We've compiled a list of eligible trade-in vehicles that average 18 mpg or less, and have a value of less than $4,500.
What kind of vehicles qualify as light-duty and large light-duty trucks? Trucks qualify based on class and vehicle weight. For example, the Ford F-150 would be considered a light-duty truck. If you are considering taking advantage of this program, look up your vehicle on Edmunds.com and determine its weight. If it is between 6,000 and 8,500 pounds and gets less than 15 mpg, you have a large light-duty truck and will need to buy a truck that improves your fuel economy by 1 mpg for a $3,500 voucher. If you select a truck that improves fuel economy by at least 2 mpg, you will qualify for the $4,500 voucher. A work truck is classified as being between 8,500 and 10,000 pounds. The only requirement for this class is that the trade-in vehicle needs to have been built before model-year 2002.
When is the program expected to go into effect, and will it be retroactive? Passage of this bill could come before the end of July and the vouchers would be available shortly thereafter. It will not be retroactive to any vehicle purchase made before the bill is passed. The current House legislation was folded into a broader energy package and was passed on June 9, 2009. Now it will go to the Senate, where it undoubtedly will go through further changes.
Where will the money for vouchers come from? Since President Obama wants this to move as quickly as possible, it is likely that the money will come from the already approved Troubled Asset Relief Program (TARP) funds and the economic stimulus package.
Does the voucher augment or replace what the dealer would give me for my trade-in? The money you receive from the Cash for Clunkers program will act as your trade in value. It cannot be combined with the dealer's trade in offer. This program is primarily designed to inflate the value of older vehicles worth less than $4,500.
Is there a limit on the price of the vehicle purchased with Cash for Clunkers vouchers? Vehicles purchased with the vouchers must have an MSRP of $45,000 or less.
How will the program be tracked? Via dealers or the DMV? Little information has been made available on this aspect of the bill. It is likely, though, that the Vehicle Identification Number (VIN) will be the prime tool in verifying information on the trade-in vehicle such as model year, engine size and the corresponding EPA-rated fuel-economy levels. The government has numerous databases with information on cars that are tracked through their VIN.
How will you get the money toward the trade-in? An electronic transfer from the government to the dealer will be issued once a vehicle is determined to be qualified for the Cash for Clunkers program. The voucher amount would be credited as all or part of the down payment on a qualifying new car.
Will it apply to used-car purchases? The final details of the bill are not yet available. However, it has always been assumed that the vouchers will only apply to new car purchases.
What if you're leasing a vehicle and wish to trade it in? Again, final details are not available. But it is unlikely that consumers who are currently leasing vehicles will qualify for this program.
What if you wish to lease the new vehicle? In this case, it appears likely that the voucher could be applied to a leased vehicle as a "capitalized cost adjustment." This would lower the price of the vehicle and thus reduce the monthly payment of a lease. In order for a lease to qualify, the term must be for no less than five years. However, we don't recommend getting into a five-year lease because of the additional costs.
I hear there is another version of the bill, how does this version differ? Senate Bill S. 1200, sponsored by Senator Dianne Feinstein, is a more environmentally focused alternative to the House version. The Senate version has a staggered voucher structure that increases the voucher's value based on the mpg improvement. The Senate bill also lowers the mpg requirement for cars and trucks, but raises the mpg limit on the new vehicle.
Edmunds.com has put together this Cash for Clunkers FAQ page to track the program as it comes to fruition, and we'll be updating this space regularly as new information becomes available.
Though the legislation hasn't yet been made into law, we've provided some details of the current version of the proposed Cash for Clunkers program passed by the House. The program would offer vouchers that allow consumers to save up to $4,500 on a new-car purchase. There are also various credits, in the form of vouchers, for trucks and work trucks.
Though information from Congress suggests that the program may stimulate anywhere from 500,000 to 1 million new-car purchases, Edmunds.com believes that it will be a struggle to reach 500,000 vehicles, since the bill has become more restrictive in recent iterations .
"A program intended to stimulate new car sales should target people in the market for a car, but the program does not," asserted Edmunds.com CEO Jeremy Anwyl. "The only people who qualify are those willing to take no more than $4,500 for their current car and immediately buy a new one — quite a narrow profile."
The proposed bill still needs to pass through the Senate (which is still trying to pass its own version of the bill), but the president has already expressed his approval of recent drafts. The House Committee on Energy and Commerce has put together a fact sheet (see below) to detail the key elements of the proposed legislation. We've followed that with an FAQ that we will continue to update as details emerge.
Committee on Energy and Commerce Fact Sheet: Cash for Clunkers
Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel-efficient cars and trucks. The program will be authorized for up to one year and provide for approximately 1 million new car or truck purchases. The agreement divides these new cars and trucks into four categories. Miles-per-gallon figures below refer to EPA "window sticker" values.
Passenger car or minivan: The old vehicle must get 18 mpg or less city/highway combined. New passenger cars or minivans with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
Light-duty truck: The old vehicle must get 18 mpg or less city/highway combined. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.
Large light-duty truck: New large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
Work truck: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pickup truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class' market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also "trade down," receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000-8,500 pounds.
s.
| Summary of Cash for Clunkers Agreement | |||
| Minimum Fuel Economy for New Vehicle | $3,500 Voucher | $4,500 Voucher | |
| Passenger Car or minivan | 22 mpg (EPA combined) | Mileage improvement of at least 4 mpg | Mileage improvement of at least 10 mpg |
| Light-duty truck | 18 mpg (EPA combined) | Mileage improvement of at least 2 mpg | Mileage improvement of at least 5 mpg |
| Large light-duty truck (6,000-8,500 pounds) | 15 mpg (EPA combined) | Mileage improvement of at least 1 mpg or trade-in of a work truck | Mileage improvement of at least 2 mpg |
| Work truck (8,500-10,000 pounds) | Trade-in must be at least pre-2002 | ||
FAQ
How much are the vouchers worth? This will depend on the car you are turning in and the type of car you buy. In general, if the improvement in fuel economy between your old car and the car you buy is 10 mpg (combined highway mileage according to the EPA), the maximum credit will be $4,500. The requirement for improvement in fuel economy for trucks is lower. For specifics, see the above chart.
How old does my car need to be? Eligible vehicles must be manufactured in model year 1984 or later. For work trucks however, any model built before 2002 is eligible. We anticipate that most cars traded in will likely be model-year 2000 and older.
What types of vehicles qualify? In general, this bill aims to take polluting gas-guzzlers off the road. The vehicle must have a federal combined city/highway fuel economy of 18 or less miles per gallon. This means that many American-made cars and trucks will be eligible for vouchers toward the purchase of new vehicles. The categories of vehicles that will qualify fall into four classes: passenger cars, light-duty trucks, large light-duty trucks (6,000-8,500 pounds) and work trucks (8,500-10,000 pounds).
What kind of mpg will the new vehicle need to get? Different levels of improvement are required for each type of vehicle. In passenger cars, if mileage is improved by 10 mpg, the $4,500 voucher is awarded; if fuel economy is improved by only 4 mpg, the $3,500 voucher is awarded. The mileage improvement levels and voucher amounts for the different classes of trucks are listed in the chart above.
The proposal mentions a one-year time limit. Is there a cap on the number of vehicles? The bill is written to provide vouchers for 1 million purchases. Since there is a one-year limit, consumers who are interested in taking advantage of this program should track the progress of the bill and apply for a voucher as soon as funds become available. There is a special provision in the bill that requires that no more than 7.5 percent of the funds for the program shall be used for work trucks.
How long do I need to have owned the vehicle I'm trading in? The vehicle must be insured and registered in your name and in use for at least one year.
If I have an older car that is in good running condition, or a classic car, is it mandatory for me to turn it in? No. This program is completely voluntary.
What happens to the car that you trade in? The dealer is responsible for sending the vehicle to a disposal facility. The entire vehicle will be crushed or shredded so that the car does not end up on the road again.
How will this affect used-car values? Since the "clunkers" will be taken off the road, there will be fewer older vehicles in the marketplace. However, our analysts don't expect this program to drastically affect used-car values.
Where do I find the mpg numbers to see if my vehicle qualifies for the Cash for Clunkers vouchers? The EPA's combined mileage will be used. This is a combination of the highway and city mileage for vehicles. Models prior to 2008 will use the converted MPG numbers which take into account the new EPA testing methods. This information can be found on the window sticker of the car or at fueleconomy.gov.
Although many vehicles will qualify for the program, it may not always make financial sense to trade it in. We've compiled a list of eligible trade-in vehicles that average 18 mpg or less, and have a value of less than $4,500.
YEAR | MAKE | MODEL |
|---|---|---|
1996 | Honda | Passport |
1997 | Lincoln | Continental |
1998 | Chevrolet | Silverado |
1995 | Audi | A6 |
1996 | Toyota | Land Cruiser |
What kind of vehicles qualify as light-duty and large light-duty trucks? Trucks qualify based on class and vehicle weight. For example, the Ford F-150 would be considered a light-duty truck. If you are considering taking advantage of this program, look up your vehicle on Edmunds.com and determine its weight. If it is between 6,000 and 8,500 pounds and gets less than 15 mpg, you have a large light-duty truck and will need to buy a truck that improves your fuel economy by 1 mpg for a $3,500 voucher. If you select a truck that improves fuel economy by at least 2 mpg, you will qualify for the $4,500 voucher. A work truck is classified as being between 8,500 and 10,000 pounds. The only requirement for this class is that the trade-in vehicle needs to have been built before model-year 2002.
When is the program expected to go into effect, and will it be retroactive? Passage of this bill could come before the end of July and the vouchers would be available shortly thereafter. It will not be retroactive to any vehicle purchase made before the bill is passed. The current House legislation was folded into a broader energy package and was passed on June 9, 2009. Now it will go to the Senate, where it undoubtedly will go through further changes.
Where will the money for vouchers come from? Since President Obama wants this to move as quickly as possible, it is likely that the money will come from the already approved Troubled Asset Relief Program (TARP) funds and the economic stimulus package.
Does the voucher augment or replace what the dealer would give me for my trade-in? The money you receive from the Cash for Clunkers program will act as your trade in value. It cannot be combined with the dealer's trade in offer. This program is primarily designed to inflate the value of older vehicles worth less than $4,500.
Is there a limit on the price of the vehicle purchased with Cash for Clunkers vouchers? Vehicles purchased with the vouchers must have an MSRP of $45,000 or less.
How will the program be tracked? Via dealers or the DMV? Little information has been made available on this aspect of the bill. It is likely, though, that the Vehicle Identification Number (VIN) will be the prime tool in verifying information on the trade-in vehicle such as model year, engine size and the corresponding EPA-rated fuel-economy levels. The government has numerous databases with information on cars that are tracked through their VIN.
How will you get the money toward the trade-in? An electronic transfer from the government to the dealer will be issued once a vehicle is determined to be qualified for the Cash for Clunkers program. The voucher amount would be credited as all or part of the down payment on a qualifying new car.
Will it apply to used-car purchases? The final details of the bill are not yet available. However, it has always been assumed that the vouchers will only apply to new car purchases.
What if you're leasing a vehicle and wish to trade it in? Again, final details are not available. But it is unlikely that consumers who are currently leasing vehicles will qualify for this program.
What if you wish to lease the new vehicle? In this case, it appears likely that the voucher could be applied to a leased vehicle as a "capitalized cost adjustment." This would lower the price of the vehicle and thus reduce the monthly payment of a lease. In order for a lease to qualify, the term must be for no less than five years. However, we don't recommend getting into a five-year lease because of the additional costs.
I hear there is another version of the bill, how does this version differ? Senate Bill S. 1200, sponsored by Senator Dianne Feinstein, is a more environmentally focused alternative to the House version. The Senate version has a staggered voucher structure that increases the voucher's value based on the mpg improvement. The Senate bill also lowers the mpg requirement for cars and trucks, but raises the mpg limit on the new vehicle.
Cash for Clunkers Rebate Eligible Vehicles List by Edmunds
A federal plan designed to boost sales of automobiles with better gas mileage is getting closer to passing Congress, despite its uneven provisions for improving fuel efficiency. The Consumer Assistance to Recycle and Save and Act (CARS) will provide consumers with vouchers ranging from $3,500 to $4,500 for trading in their old vehicles for new cars or trucks that offer higher miles-per-gallon ratings. Based on data contained in the bill that passed the House of Representatives, Edmunds.com compiled a list of vehicles that would be eligible for the so-called “Cash for Clunkers” program.
According to Edmunds, owners of passenger cars or minivans that get 18 mpg or less could receive a $3,500 rebate for buying new cars or minivans with 22 mpg, and $4,500 for those with 28 mpg or higher. But owners of light-duty trucks would only have to purchase new trucks that get 20 mpg to receive the $3,500 voucher, and the threshold for large light-duty trucks is only 1 mpg over trade-ins that currently get 15 mpg.
Lawmakers hope CARS, which has passed in the Hoouse of Representatives and is currently being considered by the U.S. Senate, will prompt 500,000 to 1 million new auto sales. Edmunds experts, though, believe the plan will be lucky if it yields even half a million new sales. “A program intended to stimulate new car sales should target people in the market for a car, but the program does not,” says Edmunds.com CEO Jeremy Anwyl. “The only people who qualify are those willing to take no more than $4,500 for their current car and immediately buy a new one — quite a narrow profile.”
This following list is based on the requirements set forth in the most recent version of the “Cash for Clunkers” bill and was compiled on June 11, 2009.
We compiled this list by searching the Edmunds.com vehicle database for models that have an average fuel economy of 18 mpg or less and for which at least one of the styles of that vehicle has a current average national trade‐in True Market Value® price (assuming clean vehicle condition and average mileage) of $4,500 or less. Accordingly, it is possible that some styles of a model may have a value higher than $4,500, and that the value of a particular vehicle may be higher because it is in exceptional condition or has very low mileage.
Please note that almost all vehicles that are model year 1989 or earlier have a trade in value of less than $4,500, and for that reason we have not included them on this list. Exceptions include vehicles that had limited production runs, such as the 1984‐86 Buick Regal T Type Turbo, the 1985‐89 BMW 6 Series 635CSi, and the 1987‐89 Porsche 911 Carrera – as well as most collector and exotic vehicles.
List of Vehicles Eligible for the Cash for Clunkers Rebate (Edmunds) (PDF)
According to Edmunds, owners of passenger cars or minivans that get 18 mpg or less could receive a $3,500 rebate for buying new cars or minivans with 22 mpg, and $4,500 for those with 28 mpg or higher. But owners of light-duty trucks would only have to purchase new trucks that get 20 mpg to receive the $3,500 voucher, and the threshold for large light-duty trucks is only 1 mpg over trade-ins that currently get 15 mpg.
Lawmakers hope CARS, which has passed in the Hoouse of Representatives and is currently being considered by the U.S. Senate, will prompt 500,000 to 1 million new auto sales. Edmunds experts, though, believe the plan will be lucky if it yields even half a million new sales. “A program intended to stimulate new car sales should target people in the market for a car, but the program does not,” says Edmunds.com CEO Jeremy Anwyl. “The only people who qualify are those willing to take no more than $4,500 for their current car and immediately buy a new one — quite a narrow profile.”
This following list is based on the requirements set forth in the most recent version of the “Cash for Clunkers” bill and was compiled on June 11, 2009.
We compiled this list by searching the Edmunds.com vehicle database for models that have an average fuel economy of 18 mpg or less and for which at least one of the styles of that vehicle has a current average national trade‐in True Market Value® price (assuming clean vehicle condition and average mileage) of $4,500 or less. Accordingly, it is possible that some styles of a model may have a value higher than $4,500, and that the value of a particular vehicle may be higher because it is in exceptional condition or has very low mileage.
Please note that almost all vehicles that are model year 1989 or earlier have a trade in value of less than $4,500, and for that reason we have not included them on this list. Exceptions include vehicles that had limited production runs, such as the 1984‐86 Buick Regal T Type Turbo, the 1985‐89 BMW 6 Series 635CSi, and the 1987‐89 Porsche 911 Carrera – as well as most collector and exotic vehicles.
List of Vehicles Eligible for the Cash for Clunkers Rebate (Edmunds) (PDF)
Sunday, June 14, 2009
Hybrid Tax Credit Available for Colorado Looming
As we near the last two state quarters available for existing tax credits, perhaps it’s not a bad idea to examine what hybrid tax credit qualifications are available.
According to a recent news story by ABC News Channel 13, KRDO.com, a deadline for available tax credits in the state of Colorado is looming. Governor Bill Ritter signed House Bill 1331 this week.
The bill will replace existing hybrid tax credits with a more expansive range of cars that are eligible to receive the credit, while phasing out other cars that are currently eligible.
Automobile manufacturers such as Toyota, Honda, and Ford produce hybrid vehicles that meet gas mileage and emission standards and qualify for a tax credit.
Although there are limits as to the amount of tax credits the federal government gives out. Once the manufacturer has sold 60,000 of a particular model the tax credit is no longer provided.
The state has an index discussing different aspects of the alternative fuel tax credit. Please see the web site to evaluate whether you would meet any of these tax credits when considering a hybrid purchase.
What does this have to do with the oil and gas industry here in Denver? I would answer that question in the most profound way I am able to come up with – it depends on how you look at it.
I believe every industry impacts the other, and, while this may factor into conservation of oil in the short term, it is important to note that oil and gas is utilized for so many other aspects of our everyday lives it is mind boggling to think about sometimes.
However, I think when prices are high as they were a year ago; consumers are prompted to take a closer look at how they personally use the most evident oil product in their lives and that is the fuel in their automobiles.
I fear, however, with the lower price of fuel at the pump in recent months, consumers are going back to their old behavior patterns, and the tax credit incentives may not be enough.
According to a recent news story by ABC News Channel 13, KRDO.com, a deadline for available tax credits in the state of Colorado is looming. Governor Bill Ritter signed House Bill 1331 this week.
The bill will replace existing hybrid tax credits with a more expansive range of cars that are eligible to receive the credit, while phasing out other cars that are currently eligible.
Automobile manufacturers such as Toyota, Honda, and Ford produce hybrid vehicles that meet gas mileage and emission standards and qualify for a tax credit.
Although there are limits as to the amount of tax credits the federal government gives out. Once the manufacturer has sold 60,000 of a particular model the tax credit is no longer provided.
The state has an index discussing different aspects of the alternative fuel tax credit. Please see the web site to evaluate whether you would meet any of these tax credits when considering a hybrid purchase.
What does this have to do with the oil and gas industry here in Denver? I would answer that question in the most profound way I am able to come up with – it depends on how you look at it.
I believe every industry impacts the other, and, while this may factor into conservation of oil in the short term, it is important to note that oil and gas is utilized for so many other aspects of our everyday lives it is mind boggling to think about sometimes.
However, I think when prices are high as they were a year ago; consumers are prompted to take a closer look at how they personally use the most evident oil product in their lives and that is the fuel in their automobiles.
I fear, however, with the lower price of fuel at the pump in recent months, consumers are going back to their old behavior patterns, and the tax credit incentives may not be enough.
Consumers to Buy A New Car for Decent Credit Now
Buying conditions that favor consumers are not uncommon in an economic downturn.
Savings can be found on impulse buys and small-ticket items, and the more one spends, the better the savings become. That leads many to believe this is one of the best times ever to buy or finance a new car.
Stuart Lasser, president of Subaru Kia of Mount Olive, as well as three other dealerships, believes things are working both in favor of — and against — the consumer.
"You still need to have decent credit to be able to finance," Lasser said. "It's marginally better than it was two or three months ago, and easier than it was three or four months ago, but not as easy as it was a year or two ago."
Finding the right car at the right time is still the most important priority for any consumer, but it might make sense to shorten the time period a bit. If one had not planned on purchasing a new car until the end of this year, now may be the time to begin shopping around.
"There are some very low-rate programs from the manufacturers," Lasser said. "If you have decent credit right now, you can make a good deal for yourself.
"If your credit is really shaky right now but your car is running OK — keep driving it," Lasser said. "If you've been thinking about a new car and you have good credit, now is the time to look for one."
Prices are being cut, and direct rebates from manufacturers and dealerships are being offered. But the best way to cash in might be through financing. A good credit score now will make financing a new car cheaper than almost any other time.
"What's happened is the auto industry has slowed production," said David Ayers, president of Ayers Chevrolet. "They're heavily incentivizing cars to move along the line of production," he said of the various programs to attract buyers.
Ayers agrees that credit is still the number one thing to have in order before attempting to buy or finance a new car.
"A much higher standard is put on the credit score than there was a year ago," Ayers said. "It's important to have verifiable credit because a loan at a reasonable rate is hard to find."
The highest rebates are attached with the most expensive cars. The make and model does not affect the rebate as much as the price tag does.
Ayers sees it as a good time to get maximum value for a trade-in.
"Rental companies are holding onto cars longer because leasing is not as attractive as it once was," Ayers said. "The availability of fresh used vehicles is smaller than it once was. This has pushed the market for used cars up. A car today would have a higher trade-in value than a car in the same condition would a year ago."
"If you have a car you would feel comfortable selling to a relative or friend, now is the time to trade it in," Lasser said.
Not many dealerships are reverting to gimmicks or come-ons in an attempt to get people to purchase from them. Having an honest relationship, with decent rates and payments on time is all either side seems to be looking for right now.
"We've never been a dealership that has sold a lot of back-end products," Lasser said. "We don't put extras on the car unless people want them. Sometimes we sell extended warranties. We're just selling cars — not doing anything extraordinary."
Savings can be found on impulse buys and small-ticket items, and the more one spends, the better the savings become. That leads many to believe this is one of the best times ever to buy or finance a new car.
Stuart Lasser, president of Subaru Kia of Mount Olive, as well as three other dealerships, believes things are working both in favor of — and against — the consumer.
"You still need to have decent credit to be able to finance," Lasser said. "It's marginally better than it was two or three months ago, and easier than it was three or four months ago, but not as easy as it was a year or two ago."
Finding the right car at the right time is still the most important priority for any consumer, but it might make sense to shorten the time period a bit. If one had not planned on purchasing a new car until the end of this year, now may be the time to begin shopping around.
"There are some very low-rate programs from the manufacturers," Lasser said. "If you have decent credit right now, you can make a good deal for yourself.
"If your credit is really shaky right now but your car is running OK — keep driving it," Lasser said. "If you've been thinking about a new car and you have good credit, now is the time to look for one."
Prices are being cut, and direct rebates from manufacturers and dealerships are being offered. But the best way to cash in might be through financing. A good credit score now will make financing a new car cheaper than almost any other time.
"What's happened is the auto industry has slowed production," said David Ayers, president of Ayers Chevrolet. "They're heavily incentivizing cars to move along the line of production," he said of the various programs to attract buyers.
Ayers agrees that credit is still the number one thing to have in order before attempting to buy or finance a new car.
"A much higher standard is put on the credit score than there was a year ago," Ayers said. "It's important to have verifiable credit because a loan at a reasonable rate is hard to find."
The highest rebates are attached with the most expensive cars. The make and model does not affect the rebate as much as the price tag does.
Ayers sees it as a good time to get maximum value for a trade-in.
"Rental companies are holding onto cars longer because leasing is not as attractive as it once was," Ayers said. "The availability of fresh used vehicles is smaller than it once was. This has pushed the market for used cars up. A car today would have a higher trade-in value than a car in the same condition would a year ago."
"If you have a car you would feel comfortable selling to a relative or friend, now is the time to trade it in," Lasser said.
Not many dealerships are reverting to gimmicks or come-ons in an attempt to get people to purchase from them. Having an honest relationship, with decent rates and payments on time is all either side seems to be looking for right now.
"We've never been a dealership that has sold a lot of back-end products," Lasser said. "We don't put extras on the car unless people want them. Sometimes we sell extended warranties. We're just selling cars — not doing anything extraordinary."
New Vehicles Tax Credit for Delawareans in 2009
Delawareans won't miss out on a tax deduction for the purchase of new vehicles this year just because the state doesn't have a sales tax.
The Treasury Department and Internal Revenue Service announced that purchases made in states without a sales tax -- such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon -- can qualify for other deductions.
The ruling is a tweak to the federal stimulus package, which allows deductions for state or local sales or excise taxes paid on the new-car purchase.
Delaware's vehicle document fee -- 3.75 percent of the purchase price or National Automobile Dealers Association book value, whichever is greater -- now qualifies for a tax credit under the stimulus package for cars purchased in 2009, according to the state's congressional delegation.
The delegation's members -- Democratic Sens. Tom Carper and Ted Kaufman, and Republican Rep. Mike Castle -- said they sent several letters requesting that the document fee be eligible.
"This is an important and positive decision that will encourage Delawareans to purchase new cars and help boost our state's economy," Carper said. "It was always Congress' intent for the document fee to be eligible for the federal tax credit."
To qualify for the deduction, a vehicle must have been purchased after Feb. 16, 2009, and before Jan. 1, 2010, according to the Treasury. The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers can claim the deduction only on their 2009 tax returns filed next year.
The deduction is limited to the fees or taxes on up to $49,500 of the purchase price of a qualified new car, light truck, motor home, or motorcycle.
The amount of the deduction is phased out for individual taxpayers whose modified adjusted gross income is between $125,000 and $135,000, and for joint filers whose modified adjusted gross income is between $250,000 and $260,000, according to Treasury.
Castle said the ruling levels the playing field for Delawareans.
Kaufman said it will encourage more vehicle purchases, providing "much needed support to our state's struggling auto dealerships."
The Treasury Department and Internal Revenue Service announced that purchases made in states without a sales tax -- such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon -- can qualify for other deductions.
The ruling is a tweak to the federal stimulus package, which allows deductions for state or local sales or excise taxes paid on the new-car purchase.
Delaware's vehicle document fee -- 3.75 percent of the purchase price or National Automobile Dealers Association book value, whichever is greater -- now qualifies for a tax credit under the stimulus package for cars purchased in 2009, according to the state's congressional delegation.
The delegation's members -- Democratic Sens. Tom Carper and Ted Kaufman, and Republican Rep. Mike Castle -- said they sent several letters requesting that the document fee be eligible.
"This is an important and positive decision that will encourage Delawareans to purchase new cars and help boost our state's economy," Carper said. "It was always Congress' intent for the document fee to be eligible for the federal tax credit."
To qualify for the deduction, a vehicle must have been purchased after Feb. 16, 2009, and before Jan. 1, 2010, according to the Treasury. The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers can claim the deduction only on their 2009 tax returns filed next year.
The deduction is limited to the fees or taxes on up to $49,500 of the purchase price of a qualified new car, light truck, motor home, or motorcycle.
The amount of the deduction is phased out for individual taxpayers whose modified adjusted gross income is between $125,000 and $135,000, and for joint filers whose modified adjusted gross income is between $250,000 and $260,000, according to Treasury.
Castle said the ruling levels the playing field for Delawareans.
Kaufman said it will encourage more vehicle purchases, providing "much needed support to our state's struggling auto dealerships."
Green Car Incentives For Israel Car Buyers
The eagerness to reward green car buyers for their purchases now looks likely to extend to Israel, where the finance ministry is planning new regulations on car purchasing according to Reuters.
The changes planned are meant to alleviate increasing air pollution as well as save energy costs. It is expected that the cars with the highest fuel consumption levels, such as SUVs, will face increased taxes and duties. Meanwhile, there will be discounts for people who buy hybrid cars and a scrappage scheme style payment for those that get rid of older cars.
Currently, purchase tax on many car models is 77 per cent of the car’s imported value - this percentage is expected to rise to 92 per cent. Fuel taxes have also been increased in recent weeks with further rises expected.
It’s a difficult time for car buyers in Israel, but with taxes on hybrids to be cut by 30 per cent, there is at least some light at the end of the tunnel. The Government hopes that people will be induced into buying environmentally friendly cars due to special tax reductions and to junk old cars that are more than 20 years old thanks to special rebates of 3,000 Shekels for getting rid of the older vehicles.
However, the concept has been criticised in some circles with critics pointing out that the reason so many owners do not buy newer cars is because of the high import duties and purchase taxes. There is also no mention of electric cars despite the fact that charge stations are being built in association with Better Place.
The changes planned are meant to alleviate increasing air pollution as well as save energy costs. It is expected that the cars with the highest fuel consumption levels, such as SUVs, will face increased taxes and duties. Meanwhile, there will be discounts for people who buy hybrid cars and a scrappage scheme style payment for those that get rid of older cars.
Currently, purchase tax on many car models is 77 per cent of the car’s imported value - this percentage is expected to rise to 92 per cent. Fuel taxes have also been increased in recent weeks with further rises expected.
It’s a difficult time for car buyers in Israel, but with taxes on hybrids to be cut by 30 per cent, there is at least some light at the end of the tunnel. The Government hopes that people will be induced into buying environmentally friendly cars due to special tax reductions and to junk old cars that are more than 20 years old thanks to special rebates of 3,000 Shekels for getting rid of the older vehicles.
However, the concept has been criticised in some circles with critics pointing out that the reason so many owners do not buy newer cars is because of the high import duties and purchase taxes. There is also no mention of electric cars despite the fact that charge stations are being built in association with Better Place.
Wednesday, June 10, 2009
'Cash for Clunkers' Incentives Plan Approved by House
The U.S. House approved legislation that would give consumers as much as $4,500 to buy new, fuel- efficient vehicles under a “cash-for-clunkers” proposal aimed at boosting auto sales.
The program, passed 298-119, would replace 1 million older vehicles with newer cars and trucks to reduce gasoline use and air pollution, according to the measure’s sponsors. Car owners would get a $3,500 government voucher for the purchase of a new vehicle getting 4 more miles per gallon than their old car. They would get $4,500 if the new vehicle improved mileage by 10 miles per gallon.
“We can free ourselves from the false argument that either you are for the environment or you are for jobs,” said the measure’s chief sponsor, Ohio Democrat Betty Sutton, on the House floor today.
Ford Motor Co., the only major U.S. carmaker that hasn’t filed for bankruptcy protection, hailed the House’s action.
“This timely, targeted and temporary program will put money directly in the hands of consumers and work to reduce fuel consumption and greenhouse-gas emissions,” Pete Lawson, the Dearborn, Michigan-based company’s vice president for government affairs, said in a statement.
“Ford will continue our work with lawmakers to ensure this critical bill” is quickly cleared for President Barack Obama’s signature, Lawson said.
‘Hard-Earned Money’
Representative Tom Price of Georgia, chairman of the Republican Study Committee, criticized the plan in a statement that said, “Taxpayers should not see their hard-earned money used to buy their neighbor a new car.”
The measure requires Senate approval as well as an allocation of funds to cover the estimated $4 billion cost. Lawmakers are discussing whether to include money for the program in a spending measure designed to fund the Afghanistan and Iraq wars.
The program would provide funds for car owners whose vehicles get 18 or fewer miles per gallon. The new car would have to get at least 22 miles per gallon. Similar benefits would be available for truck owners who trade in their vehicles for ones getting at least 1 mile per gallon more. The money could be used to buy U.S. or foreign vehicles.
In May, U.S. car industry sales declined 34 percent from a year earlier, according to Autodata Corp. of Woodcliff Lake, New Jersey. Detroit-based General Motors Corp. and Auburn Hills, Michigan-based Chrysler LLC are in bankruptcy.
'Cash for Clunkers' Details:
HOUSE
The House was expected to vote on a bill Tuesday sponsored by Rep. Betty Sutton, D-Ohio. Its provisions:
_Passenger car owners could receive a voucher worth $3,500 if they traded in a passenger car getting 18 miles per gallon or less for a new car getting at least 22 mpg.
_Sport utility vehicle, pickup truck or minivan owners that get 18 mpg or less could receive a voucher for $3,500 if their new SUV, truck or minivan is at least 2 mpg higher than their old vehicle.
_Passenger car owners could get a voucher for $4,500 if they traded in a passenger car getting 18 miles per gallon or less for a new car that is 10 mpg higher than the old car.
_SUV, pickup truck or minivan owners that get 18 mpg or less could receive a voucher for $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle.
_Large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg would be eligible for vouchers of $3,500 to $4,500.
_Consumers can receive vouchers for the purchase and leasing of new vehicles.
_Older trade-in vehicles must be in drivable condition, be manufactured in model year 1984 or later and be continuously insured to the same owner for at least one year immediately prior to trade-in.
SENATE
A group of senators led by Sen. Dianne Feinstein, D-Calif., have proposed an alternative to the House version. Its provisions:
_The trade-in passenger car must get 17 mpg or less and the new passenger car must get at least 24 mpg to be eligible for vouchers.
_Passenger car owners could receive a voucher worth $2,500 if they traded in a passenger car getting at least 7 mpg more than the old car. The voucher would grow to $3,500 if they traded in a passenger car getting at least 10 mpg more than the old car. And it would grow to $4,500 if they traded in a passenger car getting at least 13 mpg more than the old car.
_The purchase of a used passenger car with a mileage of at least 24 mpg would qualify for a voucher of $1,000.
_The trade-in sport utility vehicle, pickup truck or minivan must get 17 mpg or less and the new vehicle must get at least 20 mpg to be eligible for a voucher.
_SUV, pickup truck or minivan owners could get a voucher for $2,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 3 mpg more than the old vehicle. The voucher would increase to $3,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 6 mpg more than the old vehicle.
_SUV, pickup truck or minivan owners could a voucher for $4,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 9 mpg more than their old vehicle.
_The purchase of a used SUV, pickup truck or minivan with a mileage of at least 20 mpg would qualify for a voucher of $1,000.
_Large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with a mileage of at least 17 mpg would be eligible for vouchers ranging from $2,500 to $4,500.
Sens. Debbie Stabenow, D-Mich., and Sam Brownback, R-Kan., have sponsored legislation in the Senate that has similar requirements as Sutton's bill in the House.
The program, passed 298-119, would replace 1 million older vehicles with newer cars and trucks to reduce gasoline use and air pollution, according to the measure’s sponsors. Car owners would get a $3,500 government voucher for the purchase of a new vehicle getting 4 more miles per gallon than their old car. They would get $4,500 if the new vehicle improved mileage by 10 miles per gallon.
“We can free ourselves from the false argument that either you are for the environment or you are for jobs,” said the measure’s chief sponsor, Ohio Democrat Betty Sutton, on the House floor today.
Ford Motor Co., the only major U.S. carmaker that hasn’t filed for bankruptcy protection, hailed the House’s action.
“This timely, targeted and temporary program will put money directly in the hands of consumers and work to reduce fuel consumption and greenhouse-gas emissions,” Pete Lawson, the Dearborn, Michigan-based company’s vice president for government affairs, said in a statement.
“Ford will continue our work with lawmakers to ensure this critical bill” is quickly cleared for President Barack Obama’s signature, Lawson said.
‘Hard-Earned Money’
Representative Tom Price of Georgia, chairman of the Republican Study Committee, criticized the plan in a statement that said, “Taxpayers should not see their hard-earned money used to buy their neighbor a new car.”
The measure requires Senate approval as well as an allocation of funds to cover the estimated $4 billion cost. Lawmakers are discussing whether to include money for the program in a spending measure designed to fund the Afghanistan and Iraq wars.
The program would provide funds for car owners whose vehicles get 18 or fewer miles per gallon. The new car would have to get at least 22 miles per gallon. Similar benefits would be available for truck owners who trade in their vehicles for ones getting at least 1 mile per gallon more. The money could be used to buy U.S. or foreign vehicles.
In May, U.S. car industry sales declined 34 percent from a year earlier, according to Autodata Corp. of Woodcliff Lake, New Jersey. Detroit-based General Motors Corp. and Auburn Hills, Michigan-based Chrysler LLC are in bankruptcy.
'Cash for Clunkers' Details:
HOUSE
The House was expected to vote on a bill Tuesday sponsored by Rep. Betty Sutton, D-Ohio. Its provisions:
_Passenger car owners could receive a voucher worth $3,500 if they traded in a passenger car getting 18 miles per gallon or less for a new car getting at least 22 mpg.
_Sport utility vehicle, pickup truck or minivan owners that get 18 mpg or less could receive a voucher for $3,500 if their new SUV, truck or minivan is at least 2 mpg higher than their old vehicle.
_Passenger car owners could get a voucher for $4,500 if they traded in a passenger car getting 18 miles per gallon or less for a new car that is 10 mpg higher than the old car.
_SUV, pickup truck or minivan owners that get 18 mpg or less could receive a voucher for $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle.
_Large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg would be eligible for vouchers of $3,500 to $4,500.
_Consumers can receive vouchers for the purchase and leasing of new vehicles.
_Older trade-in vehicles must be in drivable condition, be manufactured in model year 1984 or later and be continuously insured to the same owner for at least one year immediately prior to trade-in.
SENATE
A group of senators led by Sen. Dianne Feinstein, D-Calif., have proposed an alternative to the House version. Its provisions:
_The trade-in passenger car must get 17 mpg or less and the new passenger car must get at least 24 mpg to be eligible for vouchers.
_Passenger car owners could receive a voucher worth $2,500 if they traded in a passenger car getting at least 7 mpg more than the old car. The voucher would grow to $3,500 if they traded in a passenger car getting at least 10 mpg more than the old car. And it would grow to $4,500 if they traded in a passenger car getting at least 13 mpg more than the old car.
_The purchase of a used passenger car with a mileage of at least 24 mpg would qualify for a voucher of $1,000.
_The trade-in sport utility vehicle, pickup truck or minivan must get 17 mpg or less and the new vehicle must get at least 20 mpg to be eligible for a voucher.
_SUV, pickup truck or minivan owners could get a voucher for $2,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 3 mpg more than the old vehicle. The voucher would increase to $3,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 6 mpg more than the old vehicle.
_SUV, pickup truck or minivan owners could a voucher for $4,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 9 mpg more than their old vehicle.
_The purchase of a used SUV, pickup truck or minivan with a mileage of at least 20 mpg would qualify for a voucher of $1,000.
_Large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with a mileage of at least 17 mpg would be eligible for vouchers ranging from $2,500 to $4,500.
Sens. Debbie Stabenow, D-Mich., and Sam Brownback, R-Kan., have sponsored legislation in the Senate that has similar requirements as Sutton's bill in the House.
Monday, June 8, 2009
June Ford, Lincoln, Mercury Incentives: 'Drive the Ford Difference' Promotion
FORD DRIVES SAVINGS AND PEACE OF MIND IN TIME FOR SUMMER DRIVING SEASON.
* Ford continues to lead the way in boosting consumer confidence providing safe, fuel efficient transportation with the new "Drive the Ford Difference" event.
* Through the end of June, Ford will cover up to 3 months worth of payments on select new Ford, Lincoln and Mercury vehicles.
* 0 percent financing is also offered through Ford Motor Credit on select Ford, Lincoln and Mercury vehicles.
* Ford continues its partnership with Susan G. Komen for the Cure® and will donate $20 in the name of each prospective customer that test drives a Ford, Lincoln or Mercury vehicle, up to $1 million.
As the busy summer driving and family vacation season gets underway, Ford continues its commitment to delivering high-quality, fuel-efficient vehicles for consumers to maximize their fun, relaxation and convenience during this welcomed time of year.
To take it a step further, through the end of June, the "Drive the Ford Difference" event provides added peace of mind, with Ford covering up to three months worth of payments on select new Ford, Lincoln or Mercury vehicles, as well as 0 percent financing.
With the new "Drive the Ford Difference" campaign, consumers can stretch their travel dollars on other travel items.
"We continue to introduce world class products into the marketplace and are committed to restoring that much needed confidence for the consumer through our Drive the Ford Difference event," said Kenneth M. Czubay, Vice President of Sales and Marketing. "Our quality is unsurpassed by the best in the business and we remain focused on being the best or among the best in fuel economy with every new product introduced into the market."
Continued Commitment to Local Communities
In April, Ford announced a charitable endeavor with its longtime partner, Susan G. Komen for the Cure®. As a part of this program, Ford will donate $20 in the name of each prospective customer that test drives a Ford, Lincoln or Mercury vehicle, up to $1 million. Customers will have the ability to direct their contribution to the local Komen affiliate of their choice.
Ford and its dealers have dedicated more than $100 million to the fight against breast cancer, throughout its 15-year partnership with Susan G. Komen for the Cure.
"This test drive program will continue to go a long way in helping Komen directly serve women and men in hundreds of communities across the country with education, screening and treatment programs that address breast cancer issues close to home," said Hala Moddelmog, President and CEO for Susan G. Komen for the Cure. "Once again, Ford and its associates are demonstrating the creativity and drive that have made them outstanding Komen partners for the past 15 years."
* Ford continues to lead the way in boosting consumer confidence providing safe, fuel efficient transportation with the new "Drive the Ford Difference" event.
* Through the end of June, Ford will cover up to 3 months worth of payments on select new Ford, Lincoln and Mercury vehicles.
* 0 percent financing is also offered through Ford Motor Credit on select Ford, Lincoln and Mercury vehicles.
* Ford continues its partnership with Susan G. Komen for the Cure® and will donate $20 in the name of each prospective customer that test drives a Ford, Lincoln or Mercury vehicle, up to $1 million.
As the busy summer driving and family vacation season gets underway, Ford continues its commitment to delivering high-quality, fuel-efficient vehicles for consumers to maximize their fun, relaxation and convenience during this welcomed time of year.
To take it a step further, through the end of June, the "Drive the Ford Difference" event provides added peace of mind, with Ford covering up to three months worth of payments on select new Ford, Lincoln or Mercury vehicles, as well as 0 percent financing.
With the new "Drive the Ford Difference" campaign, consumers can stretch their travel dollars on other travel items.
"We continue to introduce world class products into the marketplace and are committed to restoring that much needed confidence for the consumer through our Drive the Ford Difference event," said Kenneth M. Czubay, Vice President of Sales and Marketing. "Our quality is unsurpassed by the best in the business and we remain focused on being the best or among the best in fuel economy with every new product introduced into the market."
Continued Commitment to Local Communities
In April, Ford announced a charitable endeavor with its longtime partner, Susan G. Komen for the Cure®. As a part of this program, Ford will donate $20 in the name of each prospective customer that test drives a Ford, Lincoln or Mercury vehicle, up to $1 million. Customers will have the ability to direct their contribution to the local Komen affiliate of their choice.
Ford and its dealers have dedicated more than $100 million to the fight against breast cancer, throughout its 15-year partnership with Susan G. Komen for the Cure.
"This test drive program will continue to go a long way in helping Komen directly serve women and men in hundreds of communities across the country with education, screening and treatment programs that address breast cancer issues close to home," said Hala Moddelmog, President and CEO for Susan G. Komen for the Cure. "Once again, Ford and its associates are demonstrating the creativity and drive that have made them outstanding Komen partners for the past 15 years."
Saturday, June 6, 2009
Canadian makers,dealers ask for $3,500 incentives to scrap old clunkers
Car makers and dealers are urging the federal government to pay people $3,500 to scrap old clunkers and buy new vehicles.
Representatives of the Canadian Vehicle Manufacturers' Association and the Canadian Automobile Dealers Association applauded the steps the government has taken to support the struggling auto industry, but said they'll come to naught unless consumers start buying.
If Ottawa invests $350 million - a pittance compared to the billions it has spent bailing out Chrysler and General Motors - it could stimulate sales of 100,000 new vehicles, Richard Gauthier, president of the dealers' association, said Friday at a news conference in Ottawa.
"So far government has been tremendously supportive of our industry and has helped ensure it remains viable," Gauthier said.
"However, consumer confidence has been shaken by the state of the economy, and we need to give them reason to get their older, higher-polluting vehicles off the road."
Gauthier and Mark Nantais, president of the vehicle manufacturers' association, called on Ottawa to create a scrappage program similar to those on offer in the U.K., France and Germany.
Under the proposal, the government would offer consumers a $3,500 incentive to trade in a used car that's at least 10 years old for a new one. The program would last for one year or until the funding was used up, whichever came first.
Gauthier said the program could be funded in large part by the $92 million already set aside for a smaller scrappage program and by the increase in GST revenue from increased vehicle sales. Assuming an average car price of $20,000, sales of 100,000 new vehicles would generate $100 million in GST revenue.
In addition, a robust vehicle scrappage program would also boost the struggling economy, Nantais said.
"This will kickstart the consumer confidence needed to get people into showrooms and actually purchasing new cars. We must complete the stimulus equation by addressing demand," Nantais said.
In Germany, a program that pays consumers euro2,500, or more than C$4,000, to trade in their used cars has done wonders to boost new vehicle sales, Gauthier said. New vehicle sales in Germany increased by 20 per cent in April and a whopping 40 per cent in May, largely on the strength of the scrappage program.
By comparison, Canadian sales were down by 17.8 per cent in April and 16.5 per cent in May.
Critics of scrappage programs say they simply boost vehicle sales in the short term but prompting consumers who were already planning to buy a new vehicle to head to the showroom a few months early.
Ford Canada president and CEO David Mondragon said a robust scrappage program would help offset almost a third of vehicle sales lost to the recession.
"Our industry this year is trending down close to 20 per cent right now, so that's a nearly 300,000-unit decline on a year-over-year basis," said Mondragon, who has been an outspoken proponent of an improved scrappage program.
"If we could claw back 100,000 of those units, it would hugely offset the decline and stabilize our industry," he added.
Canada does offer a scrappage program already, but critics have variously described it as "a joke" and "useless."
Under the current program, consumers can receive free transit passes, membership in a car-sharing program, money towards a new bike, $300 in cash or a $500 rebate on the purchase of vehicle built in 2004 or later.
However, the incentives vary by province. New Brunswick and Prince Edward Island are the only provinces in which you can get the rebate. If you live in Ontario, Manitoba or Saskatchewan, your only option is the $300 in cash.
Last month, Industry Minister Tony Clement said Ottawa is closely watching a similar proposal that's winding its way through U.S. Congress but doesn't want a program that will pay consumers for their old clunkers only to have them resold and go back on the road.
Representatives of the Canadian Vehicle Manufacturers' Association and the Canadian Automobile Dealers Association applauded the steps the government has taken to support the struggling auto industry, but said they'll come to naught unless consumers start buying.
If Ottawa invests $350 million - a pittance compared to the billions it has spent bailing out Chrysler and General Motors - it could stimulate sales of 100,000 new vehicles, Richard Gauthier, president of the dealers' association, said Friday at a news conference in Ottawa.
"So far government has been tremendously supportive of our industry and has helped ensure it remains viable," Gauthier said.
"However, consumer confidence has been shaken by the state of the economy, and we need to give them reason to get their older, higher-polluting vehicles off the road."
Gauthier and Mark Nantais, president of the vehicle manufacturers' association, called on Ottawa to create a scrappage program similar to those on offer in the U.K., France and Germany.
Under the proposal, the government would offer consumers a $3,500 incentive to trade in a used car that's at least 10 years old for a new one. The program would last for one year or until the funding was used up, whichever came first.
Gauthier said the program could be funded in large part by the $92 million already set aside for a smaller scrappage program and by the increase in GST revenue from increased vehicle sales. Assuming an average car price of $20,000, sales of 100,000 new vehicles would generate $100 million in GST revenue.
In addition, a robust vehicle scrappage program would also boost the struggling economy, Nantais said.
"This will kickstart the consumer confidence needed to get people into showrooms and actually purchasing new cars. We must complete the stimulus equation by addressing demand," Nantais said.
In Germany, a program that pays consumers euro2,500, or more than C$4,000, to trade in their used cars has done wonders to boost new vehicle sales, Gauthier said. New vehicle sales in Germany increased by 20 per cent in April and a whopping 40 per cent in May, largely on the strength of the scrappage program.
By comparison, Canadian sales were down by 17.8 per cent in April and 16.5 per cent in May.
Critics of scrappage programs say they simply boost vehicle sales in the short term but prompting consumers who were already planning to buy a new vehicle to head to the showroom a few months early.
Ford Canada president and CEO David Mondragon said a robust scrappage program would help offset almost a third of vehicle sales lost to the recession.
"Our industry this year is trending down close to 20 per cent right now, so that's a nearly 300,000-unit decline on a year-over-year basis," said Mondragon, who has been an outspoken proponent of an improved scrappage program.
"If we could claw back 100,000 of those units, it would hugely offset the decline and stabilize our industry," he added.
Canada does offer a scrappage program already, but critics have variously described it as "a joke" and "useless."
Under the current program, consumers can receive free transit passes, membership in a car-sharing program, money towards a new bike, $300 in cash or a $500 rebate on the purchase of vehicle built in 2004 or later.
However, the incentives vary by province. New Brunswick and Prince Edward Island are the only provinces in which you can get the rebate. If you live in Ontario, Manitoba or Saskatchewan, your only option is the $300 in cash.
Last month, Industry Minister Tony Clement said Ottawa is closely watching a similar proposal that's winding its way through U.S. Congress but doesn't want a program that will pay consumers for their old clunkers only to have them resold and go back on the road.
Friday, June 5, 2009
June 2009 Chrysler,Jeep,Dodge Incentives Details
Even if you have bad credit you can take advantage of the incentives on many new Chrysler Jeep and Dodge vehicles during the month of June
Putting the spurs to sales
Here we see that since Chrysler sees itself emerging from bankruptcy this month, the company sees this as the opportune time to offer new enhanced incentives on many of its most popular vehicles.
“Beginning this month we are pleased to offer special finance options to our customers through our new preferred lender, GMAC Financial Services,” said Steven Landry, Executive Vice President North American Sales and Marketing, Service and Parts - Chrysler LLC. “Our dealers are now activated for retail business through GMAC Financial Services, which gives consumers more financing options as they look to purchase from our exciting line up of Dodge, Chrysler and Jeep vehicles.”
Incentives for all customers
And while GMAC is not in the bad credit car loan business, all of the cash incentives – as well as owner loyalty cash – can be used by all customers, regardless of where they finance their new Chrysler car.
Here are the current incentives:
Jeep
2009 Commander
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Grand Cherokee (excl SRT8)
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Grand Cherokee SRT8
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Liberty Limited
Get $2,000 Customer Cash Allowance plus $2,000 Owner Loyalty Cash
2009 Liberty Sport
Get $2,000 Customer Cash Allowance plus $2,000 Owner Loyalty Cash
Chrysler
2009 300 Limited
Get $3,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 300 Sedan Base/Touring
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 300 Signature Touring
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 300C (excl. SRT8)
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 300C SRT8
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Aspen Hybrid
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Aspen Limited
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Sebring Sedan Base
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Sebring Sedan Touring/Limited
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Sebring Convertible
Get $3,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Town & Country LX
Get $2,500 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
2009 Town & Country Limited
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
2009 Town & Country Touring
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
Dodge
2009 Avenger R/T
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Avenger SE/SXT
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Caliber R/T
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Caliber SE
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Caliber SRT4
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Caliber SXT
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Charger R/T
Get $3,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Charger SE
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Charger SRT8
Get $3,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Charger SXT
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Dakota Crew
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Dakota Extended Cab
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Durango
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Durango Hybrid
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Grand Caravan SE & C/V
Get $2,500 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
2009 Grand Caravan SXT
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
2009 Journey SE
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Journey SXT/RT
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Nitro SE
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Nitro SLT/RT
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Ram 1500 Laramie
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
2009 Ram 1500 ST
Get $2,500 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
Customer cash and owner loyalty cash is also available on Ram 2500, Ram 3500 and Ram Chassis Cab models. These incentives are valid through July 1, 2009.
Putting the spurs to sales
Here we see that since Chrysler sees itself emerging from bankruptcy this month, the company sees this as the opportune time to offer new enhanced incentives on many of its most popular vehicles.
“Beginning this month we are pleased to offer special finance options to our customers through our new preferred lender, GMAC Financial Services,” said Steven Landry, Executive Vice President North American Sales and Marketing, Service and Parts - Chrysler LLC. “Our dealers are now activated for retail business through GMAC Financial Services, which gives consumers more financing options as they look to purchase from our exciting line up of Dodge, Chrysler and Jeep vehicles.”
Incentives for all customers
And while GMAC is not in the bad credit car loan business, all of the cash incentives – as well as owner loyalty cash – can be used by all customers, regardless of where they finance their new Chrysler car.
Here are the current incentives:
Jeep
2009 Commander
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Grand Cherokee (excl SRT8)
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Grand Cherokee SRT8
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Liberty Limited
Get $2,000 Customer Cash Allowance plus $2,000 Owner Loyalty Cash
2009 Liberty Sport
Get $2,000 Customer Cash Allowance plus $2,000 Owner Loyalty Cash
Chrysler
2009 300 Limited
Get $3,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 300 Sedan Base/Touring
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 300 Signature Touring
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 300C (excl. SRT8)
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 300C SRT8
Get $4,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Aspen Hybrid
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Aspen Limited
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Sebring Sedan Base
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Sebring Sedan Touring/Limited
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Sebring Convertible
Get $3,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Town & Country LX
Get $2,500 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
2009 Town & Country Limited
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
2009 Town & Country Touring
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
Dodge
2009 Avenger R/T
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Avenger SE/SXT
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Caliber R/T
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Caliber SE
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Caliber SRT4
Get $1,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Caliber SXT
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Charger R/T
Get $3,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Charger SE
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Charger SRT8
Get $3,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Charger SXT
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Dakota Crew
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Dakota Extended Cab
Get $500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Durango
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Durango Hybrid
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Grand Caravan SE & C/V
Get $2,500 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
2009 Grand Caravan SXT
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
2009 Journey SE
Get $1,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Journey SXT/RT
Get $2,500 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Nitro SE
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Nitro SLT/RT
Get $2,000 Customer Cash Allowance plus $1,000 Owner Loyalty Cash
2009 Ram 1500 Laramie
Get $3,000 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
2009 Ram 1500 ST
Get $2,500 Customer Cash Allowance plus $1,500 Owner Loyalty Cash
Customer cash and owner loyalty cash is also available on Ram 2500, Ram 3500 and Ram Chassis Cab models. These incentives are valid through July 1, 2009.
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