What's a Clunker ??

Cash for Clunkers, or CARS (Cash Allowance Rebate System), has created a bit of a stir in the automotive industry. It seems that it has created a lot of confusion, more than anything else. The consumer does not seem to have a good grasp of the program and it is causing some problems at dealerships when customers come in expecting to be able to cash in but walk away unfulfilled.

The program is a good concept that can potentially give a boost to auto sales, at least on a temporary basis. It can also help reduce some of the gas consumption since the new purchased vehicle would need to have a minimum improvement of 4 mpg to qualify for the $3500 credit or an improvement of 10 mpg for the $4500 credit.

There are some great deals out there but people need to be aware of the qualifications in order to take advantage of this opportunity. There is plenty of information out there to look at but some of it is not clear and some of it may not be accurate. I would recommend referring to the official government website for CARS, http://cars.gov/ for additional information and clarity with regards to the stipulations and qualifications of the program.

The program runs until November 1, 2009 or until the $1 billion allotted for the program runs out. At the time of this posting, there is $858 million in funds remaining according to the CARS website.

UPDATE: There are reports as of today, 7/30/09, that the CARS program may be suspended due to a backlog of deals in the system that have not been funded yet and the possibility that the $1 billion threshold may be reached once these deals are processed.