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Wednesday 05 August 2009
Local Dealers Feel Effects of Cash for Clunkers
Local Dealers Feel Effects of Cash for Clunkers ERIN WALTI/SUN
With the federal government spending billions of dollars to stimulate the economy, the effects of one program can be immediately felt around Chamberlain. The Car Allowance Rebate System (CARS), or “Cash for Clunkers,” has been in effect since July 1. Chamberlain/Oacoma dealers felt the effect of the program almost immediately after it began.
“It gives those who normally couldn’t afford a new car an opportunity to purchase one. It’s already started to stimulate the economy,” said Doug Knust, owner of Harry K Chevrolet in Oacoma. The program is designed to decrease the number of older, gas-guzzling vehicles still on the road. Any vehicle less than 25 years old still being driven can qualify if the owner has proof of a clear title, one year’s insurance and registration. The clunker also must get a combined city/highway fuel economy of 18 miles per gallon or less.
Those vehicles which qualify may then be traded in on a new car with improved fuel economy. Depending on how much the fuel economy increases, the trade-in can be worth $3,500 or $4,500. Dealers then take those “clunkers” and disable the engines for salvage before sending them to be crushed or shredded. The dealer can receive a $50 fee for crushing the car; anything over $50 goes back to the customer.
