Cash for Clunkers Program

Chances are, this info may not be helpful to my readers, but I've been asked about the qualifications for the government's new Cash for Clunkers program.

Here are some of the basics:

• First off, it is only available for the purchase of "new" cars, not used cars.
• To be eligible, your car must have been made within the last 25 years, insured by the same owner for at least one year prior to trade in, and have an official fuel mileage economy rating of under 18 mpg. To find out your car’s efficiency rating visit http://www.fueleconomy.gov/
• For Passenger Cars: New passenger cars will qualify under the program only if they have a fuel economy of at least 22 MPG. If the new model gets four more miles to the gallon than the old car, you qualify for the $3,500 credit. With a 10 MPG improvement or more, you can qualify for a $4,500 credit.
• For Trucks and SUVs: For light trucks, SUVs and minivans, the new vehicle has to get at least 18 MPG and can offer as little as a 2 MPG improvement over the old one to qualify for $3,500. With a minimum 5 MPG improvement, you can qualify for $4,500.

The old car gets "trashed." It cannot be resold, so if your trade-in value is more than the voucher you would qualify for, then you are better off not participating in the program.