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 Rebates. Show all posts
Showing posts with label 2009 Car Rebates. 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
Tuesday, June 16, 2009
'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 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)
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