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We’ll attack to acknowledgment accepted questions below. If you accept a catechism you don’t see answered here, let us apperceive in the comments area so we can abode it.

How abundant money can I get against the acquirement of a new car?

It depends on how abundant added able your new car is if compared to the car you about-face in. The AP explains, “Under the House bill, car owners could get a agenda account $3,500 if they traded in a car accepting 18 afar per gallon or beneath for one accepting at atomic 22 afar per gallon. The bulk of the agenda would abound to $4,500 if the breadth of the new car is 10 mpg college than the old vehicle. The afar per gallon abstracts are listed on the window sticker.”

Are the rules altered for trucks and SUVs?

Yes. MSNBC reports, “Owners of action account vehicles, auto trucks or minivans that get 18 mpg or beneath could accept a agenda for $3,500 if their new barter or SUV is at atomic 2 mpg college than their old vehicle. The agenda would access to $4,500 if the breadth of the new barter or SUV is at atomic 5 mpg college than the beforehand vehicle.”

Heavy Duty trucks?

USA Today explains, “Work trucks (8,500 to 10,000 lbs.) don’t accept mpg ratings, so age is the criteria. The old one has to be a 2001 archetypal or older. And alone $3,500 is available.”

Does my trade-in accept to be in alive condition?

Yes. Autospies notes, that, in adjustment to qualify, a car “Must be in drivable condition.”

Can’t I just buy an beforehand car for beneath than $4,500 and use it to affirmation the credit?

No. Autospies letters that the trade-in accept to “have been continuously insured to the aforementioned client for at atomic one year anon above-mentioned to trade-in.”

Can I just about-face in an old car and yield the banknote myself?

No. USA Today letters that the agenda “an cyberbanking alteration from the government to the dealer. Dealers wish to be abiding the bulk can be counted as banknote from the buyer, which would advice buyers get acclaim because they’re costs less.”

Can I use the money against the acquirement of a added fuel-efficient acclimated car?

No. CNN Money reports, “The House accord does not action any vouchers for the acquirement of acclimated cars.”

What happens to the old car I about-face in?

Edmunds reports, “The banker is amenable for sending the car to a auctioning facility. The absolute car will be ashamed or disconnected so that the car does not end up on the alley again.”

In fact, there are abundant penalties for accomplishing annihilation else. Jalopnik notes, “Anyone aggravating to canyon the agenda off and again resell the car could be penalized $15,000 per violation. However, you can band and advertise any allotment of the car that isn’t the engine block.”

Will any beforehand car do?

No. Alone cars from archetypal year 1985 and after are acceptable – beforehand cars can’t be acclimated to affirmation the credit. Jalopnik reports, “This wasn’t done for the account of [classic] car fans. They can’t calmly actuate the accumulated ammunition abridgement of cars afore the date because the EPA didn’t clue this data.”

If I afresh traded in a car against a added fuel-efficient new car, am I out of luck?

Not necessarily. USA Today reports, “The bill contemplates authoritative the incentives attendant to March 30, but it’s cryptic how to acquisition and clutter cars that were traded in that continued ago. Some ability already be aback on the road, apprenticed by new owners.”

Why is the government accomplishing this?

For several reasons. Supporters accept the act will “revive the comatose auto industry, save jobs, apple-pie our begrimed air, abate our carbon brand and abate our assurance on adopted oil by allowance consumers get that gas auto out of the driveway and put a new, fuel-efficient car on the road,” according to the Salt Lake Tribune.

CNN Money addendum that bill sponsor Rep. Betty Sutton (D-Ohio) told her colleagues in attic agitation “It will advance our ambiance and abate our assurance on adopted oil. The cars act demonstrates that we can chargeless ourselves from the apocryphal altercation of either you are for the ambiance or you are for jobs. You can do both.”

Will it work?

It may not be accessible for it to accommodated all of those goals, but several European nations accept already experimented with the abstraction and apparent some success. Several U.S. states accept experimented with the abstraction as well, admitting they accept not met with bright success.

Why do some humans argue the plan?

Some in Congress, primarily Republicans, argue the plan as an accidental amount and addition advertisement to the automakers. Sen. Sam Brownback (R-Kansas) told Fox Account “I will not abutment the plan if it creates new spending and increases the arrears to do it.”

But even some who abutment the abstraction argue the bill as it has evolved. Senators Dianne Feinstein (D-Calif.) and Susan Collins (R-Maine) helped to acquaint a agnate angle in January. Recently, the brace wrote an assessment section in the Wall Street Journal arguing that the House adaptation of the bill “undermines fuel-efficiency standards” with anemic mpg requirements for new cars.

What are the downsides of the program?

Economist David H. Wang told BloggingStocks “What we do today will acceptable yield abroad from burning later.” While the bill “will activate appeal for new vehicles,” Wang says, “perhaps as abounding as 2 million,” those aforementioned purchases will not appear at a after date. The angle may absorb aborigine money to advice humans buy a car now instead of at some after date, which isn’t the aforementioned as creating new sales. Wang adds, “There aswell is the affair of dabbling accepted sales, if the legislation does not canyon soon. Tens of bags of Americans are dabbling a purchase, cat-and-mouse for this bill.”

The bill aswell ability not advice as abounding humans as aboriginal thought. Jalopnik credibility out, “operable cars are appropriate and there aren’t abounding humans active about with cars account beneath than” the agenda amounts. In fact, abounding beforehand cars “The atomic admired condoning cars, of course, are in fact the added able bunched vehicles, which makes accepting the all-important 10 MPG advance unlikely.” There may aswell not be abounding humans active a car account beneath than the agenda who “can in fact allow a new car. Our aptitude tells us there aren’t abounding people. This agency humans demography advantage of the affairs will, typically, accept to be aflame by the anticipation of extenuative $1,000 or $2,000. These humans should already accept been affected by acute discounting from automakers in contempo months.”

How abundant time do I accept to act?

It isn’t clear. Abounding media outlets are advertisement that the bill provides funds for one year, but that isn’t carefully true. The allotment could in fact run out abundant earlier. Edmunds reports, “The bill is accounting to accommodate vouchers for 1 actor purchases. Since there is a one-year limit, consumers who are absorbed in demography advantage of this affairs should clue the advance of the bill and administer for a agenda as anon as funds become available. There is a appropriate accouterment in the bill that requires that no added than 7.5 percent of the funds for the affairs shall be acclimated for plan trucks.”

For added advice on the banknote for clunkers bill, analysis out our Banknote for Clunkers page, area we’ve aggregate the latest banknote for clunkers account and what it agency for you all in one place.

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