Cash For Clunkers To Hybrid Cars

By: Andy Hodges
Staff Writer
Published: Jun 22, 2009

Articles - Hybrid Cars Benefit From Cash For Clunkers Program

There are so many questions about the Cash For Clunkers program, not because consumers are confused, but because the program keeps changing. This government program allows you to trade-in your gasoline clunker to help you with the purchase of a new hybrid car. What we do know is that you could receive a new car voucher worth up to $4,500 towards a new hybrid vehicle.

Most dealerships are offering the Cash For Clunkers program. If you're in the market to buy a new hybrid car, or one that has better fuel economy, then be sure to call your local dealers to find out which ones are offering this government incentive. As you already know, most of the hybrid tax credits have expired, but this new clunker program could offer you some cash towards a fuel efficient automobile.

We provide a more detailed report in our hybrid cars monthly newsletter if you wish to read further information. A qualified dealership can help you with your clunker and decide what kind of cash voucher you can receive towards a new car. President Obama also said he will sign the Cash For Clunkers bill.

The purpose of this government car program is to offer consumers an incentive to drive vehicles that offer lower emissions. Conventional automobiles produce more carbon emissions into our environment. In addition, it also helps to reduce our dependency on foreign oil.

However, most of all, it saves you money at the pump. Most new hybrid cars can drive on all-electric power at idle and slower speeds. These cars automatically turn off the gasoline engine and use hybrid batteries when needed.

The biggest question we've seen regarding this program is "Are there restriction on the year of my trade-in?" Your car cannot be older than a 1984 model year. In addition, the voucher is tax-free.

Some of the qualifications that must be met include that your trade-in must also be operational, and that you have owned the car for at least one year. Your clunker must also meet other criteria to qualify for the cash voucher. However, there are no restrictions on whether the automobile is made by a foreign automaker or domestic.

After your clunker meets certain qualifications, you can receive a voucher depending on what new car you purchase. For example, if your clunker is a passenger car, you can receive more cash on a new car that gets greater fuel economy. This difference between the $3,500 voucher and the $4,500 voucher is about 10 mpg.

For example, if my car gets about 22 mpg, I can get a cash voucher worth $3,500 if I buy a new car or hybrid that gets 26 mpg. However, if I purchase a new hybrid that gets a minimum of 32 mpg, I qualify for the $4,500 cash voucher. The program isn't too complicated, but as I said, you may want to visit a qualified dealer who is offering the Cash For Clunkers program to work out the specifics.

The Cash For Clunkers bill will definitely help sales for new hybrid cars while offering you savings on fuel. This is a great program, especially if you are interested in a new car, and it will also help clean our environment.

Also, just in case you were wondering on what happens to these clunkers after trade-in, they actually go into a recycle program. Some of the plastics, metals, and other parts will be used again in new cars.