Get a new car for Free?

[stomachmonkey]

OK,

So we've all heard about the tax credit for buying a new vehicle in 09.

You get to write off sales, local, and excise taxes.

Just found out about this, http://www.autoblog.com/2009/06/09/house-passes-cash-for-clunkers-legislation/

if your car gets 18 mpg or less and you trade in for a new vehicle the achieves at least 22 mpg, you receive a $3,500 voucher, or $4,500 if the mileage of the new vehicle is 10 mpg higher than your previous heap. SUV, pickup truck and minivan buyers are eligible for a $3,500 voucher if their vehicle gets at least two mpg higher than their trade-in and $4,500 if the vehicle gets five mpg more than their older model. The vehicle has to have been insured for the last year and there is no trade-in value beyond the voucher. The program is also available for leases. Dealers are required to provide proof that the vehicle (1984 MY or later) has been crushed or shredded

I have on 05' Mazda 3 S that I picked up used as a daily work commuter car with a trade in value of $10.5k and owe $4.5k on it.

Also have a beater Bronco that gets crap mileage and is worth $1k at best.

So trade in the Mazda and Bronco for a combined value of around $15k, pick up a new 09' Scion TC which I can get at cost from my brother and break even or spend even $20k on a new car and be in the same monthly out of pocket boat but it's a new car plus get the 09 tax write off.

Sound like a plan?

Suggestions on a car?

[looneybin]

Oh yea, i don't see ANY corruption coming out of this program.
How about if i buy a beater for $200 then go get a voucher for $4500?
sounds like hope & change to me

[MotoSook]

You're welcome.

When I need my tax dollars back, I'll come get it from ya, 'k? That's about what that clunker bill is about. Pure Obama/Democrap misguided policy.

[Porsche-O-Phile]

This is being discussed on PARF - the stipulations include that you have to have been the registered owner for at least one year.

I guarantee everyone with a bunch of junkers sitting around is rejoicing today, as the "fair market values" of selling them on CL and elsewhere just went up. Ebay is probably happy too, since they'll now make more in fees.

[Pazuzu]

Originally Posted by looneybin

Oh yea, i don't see ANY corruption coming out of this program.
How about if i buy a beater for $200 then go get a voucher for $4500?
sounds like hope & change to me

If you want to store and insure that $200 car for a year, then go for it.

First, find me a $200 car...

[Porsche-O-Phile]

The value of all $200 cars just jumped up to $3500. There won't be any more $200 cars.

Also, the program only works for vehicles that have less than 18 MPG.

I don't like government intervention, but frankly anything that helps get the POS SUVs, pickups and soot-puking old vans and other crap off the road is fine by me. At least until this program gets "modified" in a few years to no longer be voluntary... And I guarantee that's what will eventually happen.

[Pazuzu]

1) There haven't been any $200 cars for over a year. When I was shopping for the classic "$1000 car that runs", they didn't exist. Even the worst, barely legal cars were going for $2500 because of the cost of gas.
2) How are they determining the mileage of the cars? From Factory specs? From people writing down miles and how much gas they payed? My old RX-7 could vary from 15 to 20 mpg depending on how I buggered up the tuning on it

edit: I see from the other thread that it's based on the federal factory spec mileage values. Someone will complain, since poor people drive two kinds of cars...big belching old V8 crap-piles, and tiny cheap 4 cylinder Jap crap-piles. Only one of those groups will now get assistance with a new car ,since the latter won't have below a 18 average mpg rating.

[NineOhOne]

Only one vehicle per trade, sorry...

[slakjaw]

I want to know what they do with the cars people trade in?

Crush them?

[NineOhOne]

Originally Posted by slakjaw

I want to know what they do with the cars people trade in?

Crush them?

From the first post: "Dealers are required to provide proof that the vehicle (1984 MY or later) has been crushed or shredded."

[ckissick]

The quote above says the dealer must prove the old car has been crushed.

Is this the end of The 24 Hours of Lemons? (The car you enter must be bought for $500 or less.)

[Pazuzu]

Anyone using this still needs a couple of things:
1) A crappy car that averaged under 18mpg, thay they've owned for some time as a DD
2) A need for a new car
3) Money or financing to get the rest of the $20K for said new car

This is simply a small incentive (on our dime, albeit) for a few people who happen to fit that criteria. Maybe it's a push to get a few people to dump their smog machines, instead of waiting another year. It's not going to decimate the used car market, it's not going to decimate LeMons, and it's not going to put a new shiny Chevy in every driveway.

[stomachmonkey]

Originally Posted by NineOhOne

Only one vehicle per trade, sorry...

Well then I sell the Mazda privately for more than dealer trade in.

Still a win for me.

[slakjaw]

Originally Posted by NineOhOne

From the first post: "Dealers are required to provide proof that the vehicle (1984 MY or later) has been crushed or shredded."

Missed that thanks

[Tobra]

Originally Posted by looneybin

Oh yea, i don't see ANY corruption coming out of this program.
How about if i buy a beater for $200 then go get a voucher for $4500?
sounds like hope & change to me

You have insure it for a year to get the deal, and it is up to $4500. If you are a legal resident of this country and are caucasian you are not eligible anyway.

[YTNUKLR]

It's a stimulus plan, of sorts. Germany is doing the same thing; $3,500 for a 10-year-old+ car trade-in. Normal worldwide demand for new cars is about 17m units; right now private demand is barely half that, so the government is stepping up to increase incentive. This should be a temporary plan; next question, how temporary?

[dd74]

Another "next question?"

Do I want what's being sold these days, even with $3,500 as a stimulus?

Answer: hand me that Metrorail schedule, please.

[SCWDP911]

Originally Posted by Tobra

You have insure it for a year to get the deal, and it is up to $4500. If you are a legal resident of this country and are caucasian you are not eligible anyway.

man, now that is funny...well done