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Program To Give Cash For Clunkers

Customers Benefit From Getting Rid Of Old Cars

POSTED: Friday, July 3, 2009
UPDATED: 6:08 pm EDT July 3, 2009

Owning an old car could qualify you for the government’s new cash for clunkers program.

The program is expected to begin around July 23.

“I’d say about half of our customers have been calling asking about it," said Chip Snyder, the sales manager at Maroone Chevrolet.

Snyder said his family is gearing up for the program and has plenty of green cars on the lot.

In order to qualify, you must have a clunker less than 25 years old. It must be registered and insured for a full year, and it must get less than 18 miles per gallon. Then if you buy a car with an improvement of 10 miles per gallon, the government will pay $4,500 toward your new energy-efficient car.

The program applies to the purchase or lease of a new vehicle only – used cars or trucks do not qualify.

The car you trade in must go to a salvage yard, so if you think your vehicle is worth more than $4,500, you might be better off trading it in than letting it end up on a scrap heap.

“We recycle around 4,000 cars a month as it is right now. We will probably get a couple of hundred (more) a month, depending on the economy and depending on credit, if people are able to purchase these new cars," said Larry Danielle, the owner of U Pull It.

The program is expected to benefit the struggling auto industry, the scrap and salvage business and the environment. But will the consumer get the biggest benefit?

“We have no plans on adding or changing our prices to adjust for the program. The program is a complete benefit to the consumer," Snyder said.
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