WAVE 3 TV Louisville, KY | 'Cash for Clunkers' Program gets mixed reviews

'Cash for Clunkers' Program gets mixed reviews

By Marisela Burgos - bio | email
Posted By Allane Paulley - email

LOUISVILLE, KY (WAVE) - Congress has passed a $106 billion bill that funds the wars in Iraq and Afghanistan. Included in that bill is a $1 billion "Cash for Clunkers" program. If President Obama signs it, many people may be trading in older cars and getting a lot more value than expected.

The program is supposed to spark business and encourage people to trade in their old gas guzzlers for cars that are more fuel efficient.

On any day, there are thousands of cars on Metro Streets. Congress wants to put a red light on clunkers on our roadways by giving customers a $3,500 or $4,500 voucher to put toward purchasing or leasing a new car.

Duane Dupre likes the idea. He said he has been car hunting, but wants to be a careful buyer. When asked about the ''Cash for Clunkers" program he said, "Great. Yeah, I'm ready to do that today".

There are several restrictions and limitations. For example Dupre's 1995 Mazda Protégé qualifies because it is from 1985. Any cars from 1985 or later are eligible. So, his car qualifies to be traded in. But, the car has to get about 18 miles per gallon or worse. Unfortunately, Dupre's gets more than that. 

 "I would imagine mid-20's. You know. So hopefully. I don't know if I qualify, but, you know, I'm willing to try that for sure," he said.

If a person trades in their clunker, they need to get a new car that gets at least 4 to 10 miles per gallon more than what they're trading in and the manufacturer's suggested retail price has to be $45,000 or less. 

"I think it's going to be a great deal for people who need to have better transportation," Michael Leibson said. Leibson drives a '96 Toyota. He said he is happy with his car, but if his car isn't performing, he would consider turning to the "Cash for Clunkers" program.

Rick Siers of Bob Hook Chevrolet sees how it could bring business but says it might not be such a good deal for dealers if "it's a car that's worth literally nothing and ... it's going to be worth nothing to a dealer because we have to take it to a junk yard and dispose of it."

Siers says he's waiting to get more details about the program. "We hope it's something beneficial to us. To say, click our heels together, jump up in the air because they are going to pass this bill, we don't know much about it. I don't think anybody does."

But if Dupre can get more money for his Mazda Protégé than what it may really be worth, he's all for the "Cash for Clunker" program. "If that's something that is going to go through, I'm definitely interested," Dupre said.

"Cash for Clunkers" also applies to trucks and work trucks. In order to trade-in your vehicle, you need to have had it, insured and registered under your name for at least a year. According to the website Cash for Clunkers Facts, a person qualifies for a voucher if they purchase a car between July 1st and November.

Again, the President hasn't signed the bill yet.