The clunkers for cash program while very popular with the public needs some attention from Congress to keep it going. The program has been very successful but has run out of money because of that success. It’s a two-sided sword. Perhaps Congress and the Senate will add more funds for the program so others can enjoy the specified savings.

There have been some hiccups with the program so far. Many dealers have complained that the government has not gotten back to them in a timely manner which just holds up the delivery of their customer’s automobile.

$4500 is the maximum rebate for the program and your car can be no older than 25 years old, and it has to have gotten less than 18 miles per gallon. Your car would’ve had to have been insured and registered for the entire year prior to the trading day. You also receive the scrap value for your car which is normally minimal but it ensures that your car will never be on the road again.

You may see more and more advertisements to sell new cars as time goes on and the program’s popularity gets even stronger. These dealerships will be happy to apply the $4500 towards the purchase of a new car and handle all the paperwork at the same time. Are you getting a good deal? In my experience car salesman like to play with numbers to make you think you’re getting a better deal than you actually are.

There a few questions that you should ask yourself before participating in this program. Do you in fact need a new car? This is the most important question. You need to ask yourself if you’re just responding to the increased amount of advertising because of the success of the program.

Remember, that when you buy a new car you are in fact going into debt by several thousand dollars and for several years at a time. This may not be a great decision considering the economy is fragile and unemployment rate, the real unemployment rate, is well over 10%. Exercise caution and you will see that it may be a good idea to keep your old car or buy a used car that’s older and forgo the rebate.