Trading in a Car for a New Car?

If you’re considering upgrading your car, here’s a quick look at what you can expect:

IF you trade in an older car
AND that car gets 18 mpg or less…
AND you purchase or lease a new car that gets at least 22 mpg…
You can qualify for a $3,500 voucher that is applied to the price of the new car.
In addition, you can get an extra $1,000-for a total of $4,500-if you upgrade to a new car that gets 10 mpg better than the old car that you’re trading in.

Want to Upgrade an SUV, Truck or Minivan?

If you’re upgrading an SUV, truck or minivan, the numbers work out a little different:
IF you trade in an older SUV, pickup truck or minivan…
AND that vehicle gets 18 mpg or less…
AND you purchase or lease a new SUV, pickup or minivan that gets at least 2 mpg better gas mileage than the vehicle you’re trading in…
You can qualify for a $3,500 voucher that is applied to the price of the new SUV, truck or minivan.
In addition, the voucher increases to $4,500 if the miles per gallon of the new truck or SUV is at least 5 mpg higher than the old one you’re trading in.

What’s the Catch?

There are a number of provisions that must be met in order to qualify for the incentive. First and foremost, the vehicle that you’re trading in must have been built in the last 25 years-meaning, it’s a 1984 model or newer.
Second, it must only get 18 mpg or worse. Remember, the program is aimed at getting bad-mileage vehicles off the road. So, if your car gets 25 mpg, it’s not the type of car this program is targeting.
Additionally, the vehicle must be drivable, must be registered, and must have been insured for at least the past year. Essentially, you have to actually trade in a vehicle that you’ve been using, as opposed to a dead car that’s been stored on blocks for a couple of years while you tried to figure out what to do with it.

Should You Take Advantage of CARS?

Basically, this program is designed to replace older, less fuel-efficient vehicles with new fuel efficient ones. If your vehicle is fuel efficient, you probably don’t even qualify.

Additionally, if your vehicle has a trade-in value that’s greater than $3,500 or $4,500, the program doesn’t make much sense for you. That’s because the program requires your trade-in to be destroyed, since one goal of the program is to get older, gas-guzzlers off the road for good. That means, the dealership probably won’t add-in much additional trade-in value. In fact, you’ll probably only see a modest bump equal to the approximate scrap value of your vehicle. So, if you can get, say, $5,000 or more for your vehicle as a trade-in without the program, you’re probably better off going that route.

Don’t Wait Too Long to Act

The CARS program is supposed to run until November 1, 2009.UNLESS the funds that Congress set aside for the program run out before then, in which case, it’s all over. So if you’re considering this program, don’t wait too long – contact a dealer about your trade in and which new vehicle you’d like to purchase or lease.

The final rules and details of the program are expected to be released at the end of July. In the meantime, you may want to visit the government’s official CARS website at http://www.cars.gov for more information-including a FAQ page-and to see if your vehicle qualifies for the program.

 
Provided to you Exclusively
by
Julie Cooley
Mortgage Goddess, if you need a loan or need to get pre-approved call Julie.
 
 Julie Cooley
Mortgage Goddess
First National Bank of Durango
Office: 970-382-5741
Cell: 970-749-2231
Toll Free: 866-227-3005
E-Mail: jcooley@fnbdurango.com
Website: www.fnbdurango.com 

________
–
Claudia Williams
Owner/Ecobroker/Exchangor
Blue Ribbon Properties
835 Main Ave #214
Durango, CO 81301

970 247 8388 (office)
970 749 3555 (cell)
970 247 8360 (fax)
www.blueribbondurango.com

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The Scoop on Durango Real Estate
www.blueribbondurango.com/blog