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Cash for Junk Cars

by Eric on July 13, 2009

The United States government has passed the “cash for clunkers” law, giving Americans an opportunity to sell old cars for more than their value.  The CARS, or Car Allowance Rebate System, program gives a window to trade in or sell cars with low gas mileage.

If you have an old car, this might be the time to buy.  The program started on July 1st and is likely only going to be around for a limited time.  To be eligible, your car must be less than 25 years old, have a fuel rating of less than 18 miles per gallon, be in drivable condition, and have been in your ownership for at least one year.  Heavy trucks and cargo vans have different requirements.

If you think your car might be eligible, it could be a good opportunity to upgrade to a low fuel car from your big ugly old car.  Check out the CARS website for more details.  If you are going to finance it, be sure to check out my recent post on shopping for a car loan.

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  • Red Oscar

    I was anxious to use this new CARS program to assist me in retiring my 1992 Acura, only to find that the restrictive rules disqualify me because my vehicle gets too high fuel mileage. So it looks as if I will just continue to drive my old clunker and save my money.

  • Red Oscar

    My 1992 Acura Integra has a "combined" rating of 23 mpg as shown on the fueleconomy.gov web site. I generally get from 24-30 mpg depending on the time of year and type of driving. I was hoping I could trade it in and avoid the replacement of the timing belt, which usually costs $600+. The car was wrecked by my son several years ago, and I fixed it up so it was drivable again. I use the car regularly. Still, if I could get the government to give my $3500-4500 for it in trade, I'd give it up in a heartbeat.

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