CASH FOR CLUNKERS New Government Program Encourages Fuel Efficient Cars
Reported by: Atish Baidya
Videographer: Jerry Criner
Web Producer: Atish Baidya
June 30, 2009 10:40pm
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The federal government wants to give you money for your gas guzzler.
The new program called the Car Allowance Rebate System gives people money for getting new more fuel efficient vehicles. Dealers hope it will bring in new business.
"Hopefully it will spur some car sales," Royal Subaru's Kelly Smith said. "The car industry needs it right now."
People with a car less than 25 years old that gets 18 mpg or less can get a voucher worth $3500 if they buy a car getting 22 mpg. If you buy a car getting ten miles per gallon more than your old car you'll get a voucher worth $4500. Dealers have to scrap the cars people bring in to get a voucher. That means most dealers probably won't give customers any additional money for the trade in.
Dealers are still taking a wait see approach to the program because all the rules haven't been finalized yet. The government said it expects that to happen by the end of July. The program will last until November.
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