The U.S. Government hope a new program to give drivers "cash for your clunker" will help fuel the sale of fuel efficient vehicles and pump some money into the lagging auto industry. Here's how the program, formally called the "Car Rebate Allowance Program, works.
The qualification for a "clunker" are based on an EPA gas mileage rating of 18-miles per gallon or less when the vehicle was *new.* The vehicle has to be less than 25 years old, in drivable condition and had the same owner for a full year before trade in. It also has to have been insured for that full year.
The program was announced July first, but you won't be able to trade in your car until at least July 24th. Buyers who qualify receive $3500 to $4500 towards the purchase or lease of a new car. The program will run until November 1st or until funds are exhuausted.
Officials believe some 150,000 drivers will take advantage of the program. The government has set aside one billion dollars in funding. The German government tried the same program, except they set aside $5 billion. It ended up boosting their car sales by 40%.
