July 27, 2009
July 27, 2009
Program will help spur car sales and Michigan's economy
LANSING - Governor Jennifer M. Granholm today welcomed action to put in motion the Car Allowance Rebate System (CARS), commonly known as Cash for Clunkers, saying it will help Michigan's economic recovery.
"Cash for Clunkers will help Michigan citizens and our state's economy in three important ways," Granholm said. "It will help some consumers put a new vehicle in their driveway; it will help our great domestic automakers move vehicles off the showroom floor; and it will help our environment by getting less efficient models off the road. I am pleased that Congress and the Obama administration have completed the regulations for this program so quickly."
The Car Allowance Rebate System is a $1 billion federal program designed to help car owners buy or lease a new, more environmentally-friendly vehicle when they trade in their old car or truck. The trade-in vehicle must be less than 25 years old to qualify, and the credit applies to the purchase or lease of a new vehicle only.
Under the CARS program, consumers may receive either a $3,500 or $4,500 credit toward the purchase or lease of a new vehicle, depending on the type of vehicle purchased as well as the difference in fuel efficiency between the new vehicle and the traded one. Newly-purchased or leased vehicles with a combined fuel economy of at least 4 but less than 10 miles better than the trade-in vehicle qualify for the $3,500 credit. Purchased vehicles with a combined fuel economy of 10 miles or greater qualify for the $4,500 credit.
No voucher is required to participate in the program. Instead, dealers will apply the credit at purchase.
For more information about the CARS program and to see which cars qualify, visit http://www.cars.gov or call the program's hotline at (866)-CAR-7891.
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