The New, stimulus driven Cash for Clunker bill was recently passed and many Americans may be falsely excited to find out which cars are eligible. The plan basically says that the government will pay $4500 towards a new fuel efficient car if you trade-in your old clunker. All I ask is to weigh out buying a used transmission for your car, compared to a new car. Here is the plan.
1) Operational condition. Whatever that means!!
2) Rated at no more than 18 miles per gallon (m.p.g.) combined city/highway. (Check your car’s rating here.)
3) A 1984 model or newer.
4) Worth less than $4,500 – or in some cases, $3,500. (The program just bumps up the trade-in value of your car to one of those amounts; you don’t get extra).
5) Owned by you for at least a year (so you can’t go out and buy one at the junkyard and then turn around and trade it in).
The only way you will truly know if your car can be traded in is to actually contact the auto makers and find all the loop holes, that way you won’t have an anger attack when you are told, “you don’t qualify”. I am sure there will be many advertisements on both the television and Internet. It is highly likely that these ads will lead to an 800 number in which you can call a representative.
The big picture concerning the “cash for clunkers” deal is if your vehicle needs a replacement transmission and a few other affordable related repairs, yet it is in good overall condition, is it a better choice to get your ‘big‘ cash rebate, yet still go into big time debt buying a new car. It is easy to see you will owe a very significant amount of money to the bank for the difference in the price on a new car, even with a cash rebate, over a pre-tested good used transmission.
There are many positives about the program, which is designed to get rid of less efficient cars for hi efficiency new cars. It also stimulates the car companies. The cash rebate deal is great if you really need a new car, and obviously it will be good for the environment. But economically challenged people, many of which may not even qualify for a loan to pay for the new car would save money by purchasing a good used transmission and handling any related repairs over the cost of new car.
When money is so hard to come by and needed to applied to ‘primary living expenses’, is it more monetarily effective to go into debt for that much money? At least at this point in history? We are talking about just sustaining life and paying the mortgage and feeding your family, not profiling around town in a new car. You tell me what is more important.
Before you go into big debt, take your car to a qualified repair shop and have your car examined by a professional mechanic, you may save more money than a cash for clunker rebate by fixing the car you have. If you need a replacement transmission, check with the experts at GotTransmissions.com for an transmission that fits your best interests. Trust me, now you are saving money. More free information is available on our GotTransmissions.com blog. Enjoy.
