Ed Napleton Honda of Oak Lawn Proudly Supports the Cash for Clunkers Program. The Cash for Clunkers bill would allow consumers driving old vehicles to receive a voucher for up to $4,500 to put towards a new, more fuel efficient vehicle.
FAQs
How do I know if a dealer is participating in the program?
The law requires dealers to be registered to participate in the program. As dealers are registered, they will be listed on
http://www.cars.gov/. CARS.gov will continue to update this list during the life of the program. Meanwhile, you may wish to contact dealers in your area to ask whether they plan to participate in the program. The CARS Act requires dealers to be licensed by their respective state for the sale of new automobiles in order for them to participate in the program.
How do I know if my car or truck is an eligible trade-in vehicle?
There are several requirements (but you also have to meet certain conditions for the car or truck you wish to buy). Your dealer can help you determine whether you have an eligible trade-in vehicle.Your trade-in vehicle must have a "new" combined city/highway fuel economy of 18 miles per gallon or less be in driveable condition
have been continuously insured and registered to the same owner for the full year preceding the trade-in have been manufactured no earlier than 25 years prior to the date of trade-in and, in the case of a category 3 vehicle, must also have been manufactured no later than model year 2001. Note that work trucks (i.e., very large pickup trucks and cargo vans) have different requirements.
What new vehicles may be acquired under the CARS program?The CARS Act applies to new vehicles. Thus, used vehicles do not qualify under the program. The new vehicle must have a manufacturer's suggested retail price of not more than $45,000. That price appears on the window sticker on new vehicles. The new vehicle must also achieve minimum combined fuel economy levels. For passenger automobiles, the new vehicle must have a combined fuel economy value of at least 22 miles per gallon. For category 1 trucks, the new vehicle must have a combined fuel economy value of at least 18 miles per gallon. For category 2 trucks, the new vehicle must have a combined fuel economy value of at least 15 miles per gallon. Category 3 trucks have no minimum fuel economy requirement; however, there are special requirements that apply to the purchase of category 3 vehicles. As noted above, the CARS Act also requires that NHTSA make available on an Internet website a comprehensive list of new vehicles that meet the requirements of the program. Until that information is posted on the program's website, consumers may determine whether a new vehicle meets the fuel economy requirements of the program in two ways. First, the combined fuel economy of a new vehicle will be posted under the heading "Combined Fuel Economy" on the window sticker ("Monroney label") of a new vehicle. Second, you may also find the combined fuel economy value of a new vehicle by visiting
http://www.fueleconomy.gov/feg/findacar.htm and searching for their vehicle to find its combined fuel economy value. When searching that website, consumers will need to know their vehicle's model year, make, model, engine size, and transmission type.
How do I find out when my vehicle was manufactured?The month and year of manufacture (e.g., 1-96 (January 1996) appear on the safety standard certification label that is located on the frame or edge of the driver’s door in most vehicles.
How do I find out the combined city/highway fuel economy rating of my trade-in vehicle?Go to
http://www.fueleconomy.gov/feg/sbs.htm and click on the model year of your vehicle, the make, and then the model. Under the words "ESTIMATED NEW EPA MPG" in the red banner, there is a red number with the word "COMBINED" under it. That is the new combined city/highway fuel economy for your vehicle. You may then enter the make, model and model year of a new vehicle you may want to buy and see its combined MPG for comparison. Some trucks, such as work trucks, were never rated for fuel economy. For these trucks, age is the only criterion for determining whether they are eligible trade-in vehicles. If you have one of these trucks, it must be from model year 2001 or earlier, but also the date of manufacture must be less than 25 years from the date you trade it in, to be an eligible trade-in vehicle. Other restrictions may also apply.
Does the program apply if I want to lease a vehicle, or must I purchase a vehicle?Under the program, you may purchase a new vehicle or lease a new vehicle, provided the lease period for the new vehicle is at least five years.
Is there a cap on the price of the vehicle I can buy or lease under the program?Yes. The manufacturer's suggested retail price cannot exceed $45,000.
Does the program apply if I want to buy a used car?
No. The program does not apply to the purchase of used vehicles.
What is the amount of the credit?The amount of the credit is $3,500 or $4,500, and generally depends on the type of vehicle you purchase and the difference in fuel economy between the purchased vehicle and the trade-in vehicle. Different requirements apply for work trucks. In addition to this credit, will I get the full value of my trade-in vehicle? No. The law requires your trade-in vehicle to be destroyed. Therefore, the value you negotiate with the dealer for your trade-in vehicle is not likely to exceed its scrap value. The law requires the dealer to disclose to you an estimate of the scrap value of your trade-in vehicle.
What is the value of the credit for the purchase or lease of a new van, pickup truck or SUV?The value of the credit given for the purchase or lease of a category 1 or 2 truck also generally depends on the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle that is purchased or leased. If the new vehicle is a category 1 truck that has a combined fuel economy value that is at least 2, but less than 5, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new category 1 truck has a combined fuel economy value that is at least 5 miles per gallon higher than the traded-in vehicle, the credit is $4,500. If both the new vehicle and the traded-in vehicle are category 2 trucks and the combined fuel economy value of the new vehicle is at least 1, but less than 2, miles per gallon higher than the combined fuel economy value of the traded in vehicle, the credit is $3,500. If both the new vehicle and the traded-in vehicle are category 2 trucks and the combined fuel economy of the new vehicle is at least 2 miles per gallon higher than that of the traded-in vehicle, the credit is $4,500. A $3,500 credit applies to the purchase or lease of a category 2 truck if the trade-in vehicle is a category 3 (work) truck that was manufactured not later than model year 2001, but not earlier than 25 years before the date of the trade in.
What rules apply to new work trucks?A work truck, which is called a category 3 truck under the CARS Act, is subject to special rules. Work trucks are not rated for fuel economy by the EPA. Thus, the eligibility of work trucks for the program does not depend on combined fuel economy. Instead, work trucks may only be traded in under the program if they were manufactured not later than model year 2001 and not earlier than 25 years before the date of the trade in. In addition, work trucks may only be traded in for the purchase of a category 2 truck or another category 3 truck that is of similar size or smaller than the traded-in vehicle. Finally, the Act provides only for a $3,500 credit for trading in a work truck. The CARS Act limits the amount of funds that can be used to provide credits for purchases or leases of work trucks. Only 7.5 percent of the funds appropriated for the program may be used for credits for work trucks. Once that limit is reached, NHTSA will stop making payments for these transactions. NHTSA will keep the public informed as to the funds that remain available for these credits.
Can I use the credit in combination with manufacturer rebates or discounts?
The CARS Act requires the dealer to use the credit under the CARS program in addition to any rebates or discounts advertised by the dealer or offered by the new vehicle's manufacturer. The dealer may not use the credit to offset these rebates and discounts.
May I receive or use more than one credit under the CARS program?No, the CARS Act specifies that no more than one credit may be issued to a single person, no more than one credit may be issued for joint registered owners of a single eligible trade-in vehicle, and that only one credit under this program may be applied toward the purchase or lease of any single new vehicle.
How do I determine whether the vehicle I want to purchase or lease is a passenger automobile or a category 1, 2, or 3 truck?The CARS Act divides the eligible vehicles into four groups: passenger automobiles; category 1 trucks; category 2 trucks; and category 3 trucks. NHTSA will soon publish a list of the vehicles that fall into these groups. For the present, we describe here the statutory definitions and give examples of types of vehicles that satisfy those definitions. The term "passenger automobile" and its definition are borrowed from the fuel economy statute. The definition excludes from that term (1) vehicles that NHTSA has determined are not manufactured primarily for transporting persons and (2) vehicles that are capable of off-highway operation. Vehicles not manufactured primarily for transporting persons include pickup trucks and certain vehicles that permit expanded use of the vehicle for cargo-carrying purposes. See 49 CFR 523.5(a). Under NHTSA's regulations (49 CFR 523.5[b]), there are two groups of vehicles with capability of off-highway operation. The first includes vehicles that have 4-wheel drive and have at least four out of five specified physical characteristics relating to ground clearance. The second includes vehicles that are rated at more than 6,000 pounds gross vehicle weight and have at least four out of five specified physical characteristics relating to ground clearance, but do not have 4-wheel drive. Passenger automobiles are what are commonly known as passenger cars. A category 1 truck is a non-passenger automobile. This category includes sport utility vehicles (SUVs), small and medium pickup trucks and small and medium passenger and cargo vans. A category 2 truck is a large van or a large pickup truck, based upon the length of the wheelbase (more than 115 inches for pickup trucks and more than 124 inches for vans). Note: some pickup trucks and cargo vans exceeding these thresholds are treated as category 3 trucks instead of category 2 trucks.
A category 3 truck is a work truck and is rated between 8,500 pounds and 10,000 pounds gross vehicle weight. This category includes very large pickup trucks (those with cargo beds 72 inches or more in length) and very large cargo vans.
What will I need to bring to the dealer in order to participate in the program?
You should bring documentation establishing the identity of the person who currently owns the vehicle, preferably the title of the vehicle, and documentary proof that the vehicle “has been continuously insured consistent with the applicable state law and registered to the same owner for a period of not less than 1 year immediately prior to the trade-in.” The final rule will specify what types of documentation would be acceptable.
Can dealers charge me a fee for buying or leasing a vehicle under the CARS program?While dealers can charge their normal types of fees, the CARS Act specifically prohibits dealers from charging a fee for purchasing or leasing a vehicle under the program.
What happens to the vehicle I trade in?The CARS Act requires that the trade-in vehicle be crushed or shredded so that it cannot be resold for use in the United States or elsewhere as an automobile. The entity crushing or shredding the vehicles in this manner will be allowed to sell some parts of the vehicle prior to crushing or shredding it, but these parts cannot include the engine or the drivetrain.
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Ed Napleton Honda of Oak LawnPosted On: August 15th 2009, by Brian Cole
Ed Napleton Honda of Oak Lawn
Honda Civic Hybrid and Honda fit have been rated among the 'Cars that Inspire Passion' in this year's Annual Car Owner Satisfaction Survey, conducted by the Consumer Reports National Research Center.
Ed Napleton Honda of Oak Lawn Proudly Supports the Cash for Clunkers Program. The Cash for Clunkers bill would allow consumers driving old vehicles to receive a voucher for up to $4,500 to put towards a new, more fuel efficient vehicle.
