Cash for Clunkers: a Good idea or a Clunker itself? - Toyota Parts Blog
The new ‘Cash for Clunkers’ plan was a big hit when it opened a week ago Friday. Cash for Clunkers was the #1 search word on Google. But it was too big of a hit; it might seem for the government. The six month supply of money that was used to pay back the dealerships was gone within the week. Nobody anticipated this to be so popular. Congress is trying to get another 2 billion to pay back the dealerships, but no money has been granted yet.
On the first day of Cash for Clunkers, Dealers all around the country received the rules of the program. The Clunker must be drivable and has to be continuously insured and registered to you for one year. Trade in cars must get no more than 18 miles to the gallon. The Dealer is destroying your old car. And the Dealer’s retail price for the trade it cannot except $45,000.
On the first weekend, dealerships saw a 20% – 30% increase in new car sales. But, as they went in to submit the information required to get the refund, they found the website constantly down due to the overload of people using the website. It is still this way today.
The top car model that was traded in over the past couple of weeks was the 1998 Ford Explorer. In a close second and third is the 1997 and 1996 models. The Toyota Corolla and Prius are numbers three and four in top cars to trade in for.
If you have a 1984-89 model year vehicle, please check the CARS Vehicle Eligibility Guide to determine whether your vehicle meets the eligibility requirements.