by Priscilla Benfield

Created on: August 20, 2009

The Cash for Clunkers program sounds like a good plan. Encourage consumers to trade in their old, gas-guzzling rust buckets and stimulate the hurting car dealerships. It could be a win-win situation. For some people getting the opportunity to purchase a new vehicle is a help. Driving a newer and more economical vehicle can help to save some money. Weigh the amount that is being spent on your older vehicle and compare it to how much your new vehicle will cost to see if it is really worth your while.

An older vehicle that qualifies for this program is not fuel-efficient. Even if your vehicle has been kept in good running condition, perhaps you have a long commute to work. Driving a more energy-efficient vehicle can save you money on gas. With a new vehicle, especially if it comes with a warranty, you will be spending less money of repairs and maintenance. That adds up to even more savings. The next part that many people do not think about is the increase in car insurance. A new car, especially one that is financed, requires carrying more insurance than your old clunker did. Now that you are making a monthly car payment which you weren't doing before, you also are paying a higher price for your car insurance. Getting in over our heads is part of what caused the credit problems in this country. Sure it would be nice to wake up in the morning, get into a brand-new car that you know is not going to give you a problem, but it will cost you.

The Cash for Clunkers program can be a good deal for those people who really need to upgrade their ride. Having decent credit is a must. Twenty-somethings who haven't established their credit will probably need a co-signer to take advantage of this program but those who just haven't had the money for a down payment should jump at this deal. Check with the dealer to make sure they are not going to require an additional down payment aside from the rebate. The program will not be around for long and many dealers are not well-informed about the program. Do your homework by going on the website yourself. It is easy to check out if your car qualifies.

Reports have already shown that this program has been successful in giving the car industry a boost. Helping consumers to drive a newer vehicle by getting a rebate on their old vehicle is a great idea. In many cases, the amount of the rebate is more than the Kelley Blue Book value. Finally for some consumers it is a winning situation. The consumer needs to weigh the odds and then act quickly. This program will not last forever and it really can be a good deal. Do not hesitate any longer. Check out if your vehicle qualifies and then go from there. Cash for Clunkers just might put you in a new car and save you money.

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