TERRIFIC NEWS!
President Obama has signed the Consumer Assistance to Recycle and Save
(CARS) Act legislation, better known as “Cash for Clunkers”. The CARS Act
allows custom-
ers to cash in on U.S. government Vouchers of up to $4,500 towards the
purchase of a new automobile.
CARS is a temporary U.S. government sponsored program to assist customers in
trading-in a qualifying vehicle for a new, more fuel-efficient and
less-polluting one. Customers will receive a $3,500 or $4,500 voucher from
the government on top of all other incentives in exchange for their vehicle.
At Volvo, Environmental Care is a long-standing core value, evidenced by our
1972 introduction of the revolutionary LambdaSond three-way catalytic
converter, which removes up to 95% of harmful hy-drocarbons from a vehicle’s
exhaust. Since 1972, Volvo has added several other innovations to mini-mize
environmental impact. We applaud lawmakers’ efforts at encouraging consumers
to upgrade to more fuel efficient vehicles.
Here’s what you need to know:
- The National Highway Traffic Safety Administration (NHTSA)
has 30 days from the President’s sign-ing to put in place a plan to
implement the program. Consumers will use the program to receive a voucher
at the point of sale to trade-in a qualifying older vehicle for a new,
more fuel-efficient, eco-
friendly one.
- The trade-in vehicle must be in drivable condition,
have been continuously insured and registered to the same owner for at
least one year and be a 1984 or newer model year. Additionally, the
vehicle must have a combined EPA estimated fuel economy of 18 mpg or less.
Retailers will be provided with a list of entities (scrap businesses) that
are approved to dispose of trade-ins in your area.
- New vehicle passenger cars must achieve a minimum
combined EPA fuel economy of 22 mpg. They can be purchased or leased,
provided the lease term is at least 5 years. A $3,500 voucher will be
given if the new vehicle being purchased achieves at least 4 mpg more than
the vehicle being traded in. A $4,500 voucher will be given if the new
vehicle being purchased achieves at least 10 mpg more than the vehicle
being traded in. The new vehicle MSRP cannot exceed $45,000.
- New vehicle light trucks must achieve a minimum
combined EPA fuel economy of 18 mpg. They can be purchased or leased,
provided the lease term is at least 5 years. A $3,500 voucher will be
given if the new vehicle being purchased achieves at least 2 mpg more than
the vehicle being traded in. A $4,500 voucher will be given if the new
vehicle being purchased achieves at least 5 mpg more than the vehicle
being traded in. The new vehicle MSRP cannot exceed $45,000.
- The U.S. Government has approved $1 billion for this
program. The program will end when the budget has been exhausted or by
November 1, 2009, whichever comes first. Analysts estimate that this
budget would cover about 250,000 vouchers which are available on a
first-come, first-served basis.
|
