There have been a lot of questions about the Cash 4 Clunkers Program.  A couple of things to keep on mind other than whether your vehicle qualifies are the following:

1.  You are not required to sign an agreement to pay back the dealer the Cash 4 Clunkers credit amount if the deal is rejected.

2.  The dealers must take title to and possession of your trade in vehicle in order to submit a credit for reimbursement under the Cash 4 Clunkers program

3.  Dealer cannot require you to leave a check or credit card authorization for the amount of the credit in case your credit application is not approved

4.  If a dealer cancels the contract because they are unable to get you financed, you do not have to pay the dealer the money they gave you for your car.  And the dealer has to give you your trade-in back or the money that they gave you for it on the contract.

 5.  You cannot be charged a special fee for participating in the Cash 4 Clunkers program

6.  Cash 4 Clunkers program can be combined with other government incentive programs, such as hybrid vehicle credit

7.  Cash 4 Clunkers program provides that the credit is not income and thus you should not be taxed on it when you do your taxes.

Go to  http://fueleconomy.gov/feg/carssearchintro.shtml to see if your vehicle qualifies for the program.

Cash 4 Clunkers Program has the following Categories

1. Passenger Automobiles

2. Category 1 Truck

3. Category 2 Truck

4. Category 3 Truck

Go to http://fueleconomy.gov/feg/carssearchintro.shtml to check what type of vehicle you have

You will need:

1.  Gross Vehicle Weight Rating (”GVWR”)

2.  Model Year

3.  Vehicle Make and Model

4.  Type of Engine and Transmission

5.  Fuel Type (gasoline or diesel)

6.  Drive type (2WD or 4WD)

7.  Whether your vehicle has a supercharger or turbocharger

Category 1 Trucks are SUVs rated less than 8,500 pounds of gross vehicle weight, small and medium pickup trucks, and small and medium passenger and cargo vans

Category 2 Trucks are large vans or large pickup trucks, based upon the length of the wheelbase more than 115 inches for pickup trucks and more than 124 inches for vans

Category 3 Trucks are work trucks and that are rated 8,500 and 10,000 pounds gross vehicle weight, very large pickup trucks (those with cargo beds 72 inches or more in length, and very large cargo vans.

Your Trade-in must meet the following requirements to be eligible.

1.  Manufactured date – less than 25 years before the date it is traded in unless it is a category 3 vehicle, then it must not have been manufactured later than model year 2001

2.  “New” combined city/highway fuel economy of 18 miles per gallon or less and

3.  In drivable condition

4.  Continuously insured and registered to the same owner for the full year preceding the trade-in

   a.  Whoever is on the registration and title of the trade in vehicle must be on the title and registration of the new vehicle unless the trade in vehicle is jointly registered and title, then at least one of the persons on the joint registration and title must be part of the new vehicle’s registration and title.

  b.  A power of attorney can be used to transfer and purchase new vehicle.  This would be used when you have a client in the military who is on active duty out of the country.

To use the program, the Vehicle you purchase must meet the following criteria:

1.  Must purchase a new vehicle

2.  Can be foreign or domestic vehicle

3.  Can be a lease

4.  Manufacturer’s Suggested Retail Price (”MSRP”) cannot exceed $45,000

5.  Motorcycles are not eligible

6.  Category 3 or work truck cannot be traded in to purchase a category 1 vehicle or passenger car, only a Category 2 truck or another Category 3 truck of equal or smaller size.

This bill was initiated to combat the problem with dealers going out of business before they pay off remaning loan balances on trade-in vehicles.  A problem which will continue to grow during this recession.

The Bill will require dealers to pay off liens prior to transferring vehicles to a new owner or before the next payment is due, whichever comes first.  The dealer bond will would increase from $50,000 to $250,000 for franchised new-car dealers and $100,000 for independent car dealers.

Contact Senator Ellen Corbett to support this SB 95.