Discussion:Cash for Clunkers

cars.gov covers the cash for clunkers questions. I read the law and want to double check my interpretation (http://www.cars.gov/files/CARS-Law.pdf).

Let's say taxpayer has a clunker that qualifies for the full voucher amount - $4,500. And let's say taxpayer trades in for a plug-in hybrid. Taxpayer would also get the Federal credit of $7,500 (maximum credit)? Taxpayer would walk away with a possible $12,000 of savings? That's how I am reading it. Other people reading it the same way?

The cutoff for a clunker is 18 mpg or less and guess what my ford Taurus is rated at? That's right, 19 mpg, not a clunker. errr.

Thanks

Not exactly...the way I read it...the credit is based on how much of a difference there is in the mph of the clunker against the mph of the new vehicle. There is also a limit to the age of the clunker. I have a 1984 Chev S10 that gets 23mpg...putting it through the website if I buy a Ford Escape I qualify for 3500. If I buy an Escape Hybrid I qualify for 4500.

www.cars.gov

Gee whiz, are we supposed to go out and *race* them.... LOL

And by the way, I read this as the 18 was the minimum, regardless of differential.

Now, it's true that for the millions living in their cars, they will not be able to get the same square footage they had in their clunker. They'll need a real house now.

So, within a few weeks, we Democrats are going to be able to claim that this is also a housing stimulus plan, as the displaced people decide to trade in their old car for a new one, AND buy a house they can't afford.

Things are looking up.

When a qualifying clunker is traded in for the $3,500, does this come directly off the price calculated for sales tax purposes in NYS?

Must have been manufactured late in 1984. Also, is it a 6 cylinder automatic? Or a california 6 cylinder manual? Combined MPG per cars.gov on a 6 cylinder 2.8 auto S10 is 18, which just barely qualifies. Same for CA manual 6 cylinder. However non-CA 6 cylinder gets 19 MPG and does not qualify, and none of the 4 cylinders qualify.

From cars.gov on a 4 cylinder 84 s10:

"Qualifies for CARS? No. Your trade-in must have a Combined MPG rating of 18 MPG or less to qualify."

Now, that doesn't mean your S10 couldn't get 24 MPG and still qualify, because it's not what you actually get but what the combined rating when new was. If you had an exceptionally well running S10 you could beat the average and get higher MPG than would normally qualify, yet still qualify because it's combined rating was only 18.