Jun 11, 2009 15:13 ET
Edmunds.com Provides List of Vehicles Eligible for “Cash for Clunkers” Rebate
SANTA MONICA, Calif. --(Business Wire)-- Jun 11, 2009
Now that “Cash
for Clunkers” has been approved by the U.S. House of
Representatives, it is likely to be made into law by the end of the
summer. Wondering if you would qualify to participate? Keep in mind that:
-
It will offer no more than $4,500 to new
car buyers.
-
It will require the trade-in vehicle to be crushed (which means that
owners will not collect any trade-in value.)
-
Cars to be scrapped would have to have EPA combined fuel economy
ratings of 18 miles per gallon or less, and the new vehicle purchased
must earn better mileage.
-
The participant must have owned the “clunker” for one year.
“If you can get more than $4,500 for your vehicle, you're better off
selling it or trading it in without taking advantage of the Cash for
Clunkers rebate,” stated Edmunds.com
Editor In Chief Karl Brauer, who addresses this topic on his blog, Karl
on Cars.
Edmunds.com has compiled a list
of “clunkers” whose owners would benefit from pursuing the rebate.
Here are some examples of eligible vehicles:
“This legislation attempts to offer a benefit for the environment and to
spur vehicle sales, but the reality is that it does neither very well,"
asserted Edmunds.com CEO Jeremy Anwyl. “In terms of vehicle sales, the
only consumers who will be interested are those willing to take no more
than $4,500 for their current car and yet be financially able to buy a
new one – quite a narrow profile.”
He recommends that legislators delete the one-year ownership
requirement. “If the goal is to remove old cars from the road, why
should it matter who owns them and for how long?” Anwyl questioned. He
notes that deleting this requirement could really stimulate the economy
by prompting as many as three car sales per participant:
1. the sale of the clunker to the participant
2. the replacement of the clunker by its previous owner (likely a used
car sale)
3. the purchase of the new car by the participant (necessary to qualify
for the program)
In some states, this will even generate sales tax on all three sales.
Anwyl also suggests that the scrappage requirement be eliminated so that
a larger population can benefit from the program. “If owners of newer,
less fuel efficient vehicles could get above a fair value for their
trade-ins rather than just the government allowance, more people would
likely participate and car sales might truly be reignited,” he claimed.
The environmental benefits of the program in its current form are not
expected to be significant either. Edmunds’ Green
Car Advisor Editor John O’Dell reported, “The idea sounds like it
has good green credentials, but it isn't likely to move the needle very
far.”
O’Dell continued, “Fortunately, the bill still has to be approved, or
altered, by the Senate. Unfortunately, most senators seem little
interested in either increasing the financial incentives or the bill's
green footprint.” California Democrat Sen. Diane Feinstein’s
countermeasure allegedly would result in a 32 percent increase in fuel
savings and won the backing of most major environmental groups, but is
unlikely to prevail.
For more information on “Cash for Clunkers” and other industry news,
please visit http://www.edmunds.com/industry-car-news/.
Some Edmunds.com
spokespeople are available for interviews in Edmunds.com’s television
studio in its Santa Monica, Calif. headquarters.
Available spokespeople include:
Jeremy Anwyl, Edmunds.com CEO (Los Angeles)
John O’Dell, Edmunds’ GreenCarAdvisor.com Senior Editor (Los Angeles)
Michelle Krebs, Edmunds’ AutoObserver.com Senior Editor (Detroit)
Jesse Toprak, Edmunds.com Senior Analyst (Los Angeles)
Jessica Caldwell, Edmunds.com Analyst (Los Angeles)
Bill Visnic, Edmunds’ AutoObserver.com Editor (Pittsburgh)
Kevin Smith, Edmunds.com Editorial Director (Los Angeles)
Karl Brauer, Edmunds.com Editor In Chief (Los Angeles)
Philip Reed, Edmunds.com Consumer Advice Editor (Los Angeles)
About Edmunds Inc. (http://www.edmunds.com/help/about/)
Edmunds Inc. publishes four Web sites that empower, engage and educate
automotive consumers, enthusiasts and insiders. Edmunds.com,
the premier online resource for automotive consumer information,
launched in 1995 as the first automotive information Web site. Its most
popular feature, the Edmunds.com True
Market Value®,
is relied upon by millions of people seeking current transaction prices
for new and used vehicles. Edmunds.com was named "Best Car Research
Site" by Forbes ASAP, has been selected by consumers as the "Most Useful
Web Site" according to every J.D. Power and Associates New
Autoshopper.com Study(SM), was ranked first in the Survey of
Car-Shopping Web Sites by The Wall Street Journal and was rated
"#1" in Keynote's study of third-party automotive Web sites. Inside
Line launched in 2005 and is the most-read automotive enthusiast
Web site. CarSpace
launched in 2006 and is an automotive social networking Web site and
home to the oldest and most established automotive community. AutoObserver.com
launched in 2007 and provides insightful automotive industry commentary
and analysis. Edmunds Inc. is headquartered in Santa Monica, California,
and maintains a satellite office in suburban Detroit.
Edmunds.com Corporate Communications
Chintan Talati and Jeannine
Fallon
www.edmunds.com
Media
Hotline: 310-309-4900
pr@edmunds.com