Considering Cash for Clunkers- 2 things you should read first

[n2doc]

Mileage change throws some clunkers in and out of voucher plan
BY JUSTIN HYDE • FREE PRESS WASHINGTON STAFF • JULY 27, 2009

WASHINGTON – A last-minute update of federal fuel economy data caused confusion today among shoppers looking at cash-for-clunkers deals, making some old cars and trucks ineligible just as the program launched.

The U.S. Environmental Protection Agency said today that a review of data on 30,000 models from the past 25 years in preparation for the clunkers program changed the eligibility of about 100 vehicles. Of those, roughly half had their mileage increased above 18 m.p.g., making them ineligible, while the other half were found less efficient and could now qualify.

The government relies on the data from the fueleconomy.gov Web site to determine whether an older model qualifies for a $3,500 or $4,500 voucher. The problem was first reported by users at Edmunds.com and other Internet sites who reported the fuel economy figures on their clunkers changing without warning, knocking them out of the program.

The EPA updated the fuel economy figures Friday, when the National Highway Traffic Safety Administration released the final rules for the program.

more:
http://www.freep.com/article/20090727/BUSINESS01/90727084/1014/BUSINESS01/Mileage-change-throws-some-clunkers-in-and-out-of-voucher-plan

'Cash for clunkers' and taxes
The "cash for clunkers" program, which kicked into gear over the weekend, is raising a couple of taxing issues for potential car buyers.

The program can lower the price of a new vehicle by $3,500 or $4,500, depending on the improvement in fuel economy versus the vehicle the buyer is trading in. Which raises the question: Are state and local sales taxes applied before or after the price reduction?

California residents, meanwhile, may face a tax bite from Sacramento. If the price reduction on the new car is greater than the amount the buyer paid for the “clunker” in the first place, the difference has to be reported as a taxable gain and the buyer may have to pay state tax on it, according to the state Franchise Tax Board.

For example, if a person trades in a vehicle that cost $3,000 and qualifies for a $3,500 price reduction, that person has to report the $500 difference as a taxable gain.

more:

http://latimesblogs.latimes.com/uptospeed/2009/07/clunkers.html

[dysfunctional press]

1. i found a link to the final list.

http://www.fueleconomy.gov/feg/CarsSearchIntro.shtml

my car is still there...i was surprised at first, because i though that it had been removed...then i remembered that it's a dodge, and not a chrysler.

[sandnsea]

2. Here you go

My son's car misses the mark by a literal mile.

http://www.fueleconomy.gov/feg/CarsSearchIntro.shtml

[dysfunctional press]

3. thanks- i had just found it too...

mine's still on the list...and i'm starting to contemplate the possibility...i could get a brand new car with a lifetime drivetrain warranty for under $10,000.

but i don't have $10,000.

[sandnsea]

4. That was my son's hope

He's getting a raise in 2 weeks so he was hoping to get a loan. But his really true POS is the 6 cyl 1997 Taurus so it doesn't qualify. grrr. Really stupid because I think they should get everything off the road that is at least 10 years old and gets less than 30 mpg because you know they run like crap so their mpg is gone, if it ever did get that. Do legislators not know this?

[nilram]

5. My auto is blowing smoke, but it doesn't qualify

but that's ok, I can't afford any car, new or used, right now. And I think the auto dealers would just adjust the deal they give you so they get even more cash anyway.

[XOKCowboy]

11. I hate the idea of buying a new car.

I hate going into debt for the huge amounts new cars cost. About as close as I'll get for a while is driving rental cars at work. The taxes and insurance also make it prohibitive then there's the sudden depreciation in value. I'm always keeping my eye out for good used cars. Especially right now.

[nilram]

14. yeah, there's that.

I bought this car, used, from a private party. I hate shopping for cars, so I'll drive it till it is really in bad shape. I kick myself for the one time I bought a new car. Ridiculous expense, and, I decided, I'd rather talk to automotive mechanics than automotive salespeople.

[kevinbgoode]

7. I can't afford a new one either, but my car is 12 years old and STILL

gets 37 mpg. I guess those of us who bought efficiency vehicles from the beginning of our driving careers are screwed in this deal.

[sandnsea]

8. Mine too

That irks me too. I have a 98 Plymouth Neon that I hardly ever drive so it's still in great shape. I was responsible and got a car with good mileage, (I couldn't afford a $40,000 gas guzzler anyway), but once again, they get the benefit.

[XOKCowboy]

12. Oh come on. You weren't screwed. You've saved thousands of dollars over those trading

their inefficient cars. My 2000 Dodge Stratus doesn't qualify by 4mpg. There's a reason I didn't buy a SUV or pickup and I've been repaid for it.

[Mopar151]

15. They don't know this, 'cuz it's not true.

My '89 Grand Marquis gets 22 mpg, and runs just fine given even minimal maintainence. It's nearly identical predecessor lasted me over 100000 mi, and retired at 272,000.

[XOKCowboy]

10. 4mph over.. It actuall gets about 32 mpg on the highway..

But at 170K miles I'll have to get another car soon. Oh well. Congrats to those who do qualify.

One CARS story. One of my friends back in OK had a early 90s Ford pickup he uses for work. He's not overtly political but works with some real RW/Fox watchers. He certainly didn't vote for Obama but wasn't much of a Bush lover either. In any case when he told me he'd traded his old truck on a brand new F150 using the Cash for Clunkers program I had to gently remind him that it was because of Obama's stimulus program that he had a new truck and that it showed Obama was trying to help the little guy. I also asked him how his job was (he's a cement layer) and he said his company had gotten a lot of muicipal and state jobs. I, once again, had to remind him that because of Obama's stimulus program there was federal funding for infrastructure work. Can I turn him around. Maybe. If nothing else he'll have a different mindset the next day when he goes back to work and has to listen to his wacko co-workers.

[high density]

9. Interesting

My first car squeaks by at 17MPG and 1985, but it was scrapped years ago. Plus the new cars with six cylinder engines that I'd consider purchasing supposedly don't get at least the required 22 "combined MPG" and aren't eligible for the program. I do think the "combined MPG" is biased towards a city driving situation that doesn't exist where I drive the most.

[slipslidingaway]

6. thanks n/t

[Motown_Johnny]

13. I think it is a pretty weak incentive

My brother sells cars. My sister works in the office of the same company I work for. My Boss and my sister and my brother and I all tried to find a way for the company to use this incentive to upgrade our fleet of trucks. No Luck!!!


To much red tape and only 4500 bucks for any trade in. This is not 4500 on top of the trade in value, it is instead of the trade in value.

Hell, even our clunkers are worth that much or more. When you add in the cost of equipping the vehicle for the specific tasks it will be used for, plus adding lettering with company name and phone number as well as MDOT number (all required by law) the amount of money the Government is offering just isn't enough to help us buy new trucks. To bad too, getting better gas mileage would be great for everyone.