If you have been hesitating or vacillating over a new automobile purchase,
the recent Cash For Clunkers Program may be your incentive.Although the auto
indusrty is mired in problems, the program deserves a second look.
The new “Cash For Clunkers” legislation provides a tax-free discount of
either $3,500 or $4,500 on the purchase price depending on the difference in
miles per gallon (“mpg”) savings and the type of vehicle traded in and
purchased.
There are also some qualifcations required.
Here’s an overview:
Passenger Vehicles:
Passenger vehicles maunufactured in 1984 or later with a rating of 18 mpgs or
less, that are traded in for new passenger vehicles with a higher rating of
22 mpgs or more are entitled to a $3,500 discount. If the difference in mpgs
is 10 mpgs or greater, the discount increases to $4,500.
SUV/Light Trucks/Vans:
SUV/light trucks/vans (beginning with 1984 model years) with a rating of 16
mpgs or less, that are traded in for new SUV/light truck with a rating of 18
mpgs or more are entitled to a $3,500 discount. If the difference in mpgs is
5 mpgs or more, the discount increases to $4,500.
Large Light Duty Trucks:
Large light duty trucks (beginning with 1984 model years) with a rating of 14
mpgs or less, that are traded in for new large light duty truck with a rating
of 15 mpgs or more are entitled to a $3,500 discount. If the difference in
mpgs is 2 mpgs or more, the discount increases to $4,500.
