Cash For Clunkers

By now you've probably heard about the federal government's so-called "cash for clunkers" initiative that's designed to encourage you trade in that old gas-guzzling car or truck in your driveway in exchange for a healthy discount on the lease or purchase of a new more fuel-efficient model.

Well, we've been looking into this C.A.R.S. (that's short for "Car Allowance Rebate System") program and we're convinced it's one of those rare opportunities that you'll end up kicking yourself if you miss out on.  While the rules won't be finalized until July 24^th, here are some of the high points of how the program is expected to work:

• The amount of the credit will be either $3500 or $4500, and will be determined by the difference in fuel economy between the car you're trading in and the new one you're buying (or leasing).  Better still, these rebates can be combined with other manufacturer incentives or federal tax credits like those available to buyers of certain hybrid and clean diesel models;
• Rebates are only available on new models with an MSRP under $45,000 and combined EPA fuel economy ratings of 22 miles-per-gallon or better;
• The discount will be deducted from the new vehicle's purchase price by the dealer, make it a relatively hassle-free experience;
• Your trade-in must be less than 25 years old, in drivable condition, and have been continuously registered to and insured by the same owner for the preceding 12 months;
• Your soon-to-be ex-vehicle must have a combined EPA estimated fuel economy rating (when new) of 18 miles-per-gallon or less;
• Since the idea is to get these less environmentally-friendly models off the road for good, you should understand going in that your old car is headed for the crusher.

Our final word on the subject is procrastinators beware!  Uncle Sam's offer is good for a limited-time only.  The program is scheduled to end November 1^st or when the money runs out, whichever comes first.

Which makes the only important question, "What are you waiting for?"

PS: For a look at some of the most fuel-efficient cars on the market,  on the market, check out this list of DriverTV "virtual showroom experiences."