After an extensive process of negotiation and debate, the United States government’s “Cash for Clunkers” program has been officially launched as the Car Allowance Rebate System (CARS).With this system, you can trade in your older model cars with low fuel efficiencies to receive a rebate of up to $4500 from the federal government toward the purchase of a new, more efficient vehicle. The goal of this initiative is two-fold. Lawmakers hope that the rebates will jump start auto sales while also pulling old, inefficient gas guzzlers off the road. Both foreign and domestic auto dealers are allowed to participate in the program, offering consumers a wealth of options for their new car purchase. Rebates do not count toward your taxable income. Cash For Cars Sydney
There are a few requirements that must be met in order to be eligible for a rebate on your trade in. For example, the car being turned in must be in drivable condition, not more than 25 years old, and must get less than 18 miles per gallon according to revised EPA standards. New vehicles purchased must be less than $45,000 before any options are added and get a combined 22 miles per gallon or better. The vehicle can be produced by any auto manufacturer as long as it meets the cost and fuel efficiency standards.
Critics are up in arms, claiming that the government should have limited the rebates to new American car purchases only. This would help revive the faltering domestic auto manufacturing industry and assist the domestic automakers in their attempts to restore consumer confidence. General Motors, Chrysler, and Ford Motor Company owe several billion dollars to the American government and an increase in sales would help the companies begin to repay some of the taxpayer money in a more timely fashion. Both GM and Chrysler have recently emerged from government-backed Chapter 11 bankruptcy proceedings and are now partially owned by the United States Treasury Department. The Treasury Department holds a 60.8% stake in the new General Motors.