photo credit: Matti Mattila
President Obama recently signed into law the “Cash for Clunkers” legislation, a bill intended to boost the sagging auto industry while rewarding people for purchasing more fuel efficient vehicles.
Here is how it works: you trade in your old car (it must be less than 25 years old, drivable and get less than 18 mpg) for a new car which must have a combined fuel economy of at least 22 mpg. New small trucks and SUVs must get at least 18 mpg while large trucks are required to achieve a minimum of 15 mpg. This program will cost $4 billion and will come from TARP.
How much cash will you get paid? Depending on how much you step up in your fuel economy (and several other factors), you will either get $3,500 or $4,500.
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