Update: The program's launch has been delayed until Monday, July 27, apparently due to a problem with the computer system used to register dealerships to participate.
It's official. The federal government is now buying back gas guzzlers and sending them to the crusher.
ABC News reports, "Americans will get a new incentive to trade-in their gas-guzzling cars today when a government rebate program that offers cash vouchers to people who trade in their cars for new fuel-efficient vehicles officially starts." The Car Allowance Rebate System, popularly known as the Cash for Clunkers program, was signed into law last month in a big to "help jump-start struggling auto sales and to improve the environment."
The program offers rebates of up to $4,500 toward the purchase of a new car when buyers trade in an older, less-efficient car. The trade-ins are slated for destruction, in the hope that taking them off of American roads will cut air pollution and reduce America's consumption of foreign oil.
Car dealers hope the program will help pull their industry out of a downward spiral. The New York Daily News reports, "Car dealers are taking advantage of the $1 billion plan to reel in recession-ravaged consumers who have been reluctant to splurge on a new car. They say the program will jump-start sales and get buyers back into showrooms, especially when manufacturers are tacking on incentives of their own. "
Manufacturers have done just that - ranging from Hyundai's offer to take in clunkers before the program officially began, to Chrysler's offer to double the government's rebate on some models.
Some analysts, however, are skeptical. The Wall Street Journal reports that both Edmunds.com and J.D. Power and Associates "projected little industry impact this year from the ‘Cash for Clunkers' program." J.D. Power Senior Vice President Gary Dills told the Journal, "Many consumers don't understand the specifics of the program, and if they do, they often find they don't qualify for the incentive."
Others doubt the program will meet its environmental goals. "Critics say it doesn't go far enough with its fuel efficiency requirements and could end up being a subsidy for big SUVs and trucks," ABC News notes. "Even some environmentalists are against the new law. They point out that it will end the lives of perfectly serviceable vehicles with years of life left. One way to be green is to get a more carbon-friendly car. Another way to be green is to ‘recycle' a car by buying used."
"Still," the Baltimore Sun reports, "Some consumers say they will buy a new vehicle as soon as they can before the federal money runs out." The program is slated to end November 1, but Congress has allocated just $1 billion for the vouchers - one quarter of the money advocates wanted for the program. The funding could run out early.
If you're interested in the Cash for Clunkers program, check out our Cash for Clunkers page. If you already know which car you want, you can contact local dealers here. For the latest news on the program, check out Cash for Clunkers news.
