Feds trade-in program can be good deal

PHOENIX --

"Cash for Clunkers" -- you could save $4,500 if you trade in an old car for a new more environmentally friendly vehicle.

Scott Gruwell with Courtesy Chevrolet said now might be the time to take advantage of the"CARS Act," signed by President Barack Obama on June 24. The act creates a government program that will help consumers pay for a new, more fuel-efficient car or truck when they trade in a less efficient car or truck.

"It's a substantial amount of money when you apply the federal assistance program, which is Cash for Clunkers, and normal rebates during this high-selling time," Gruwell said, adding savings could add up to $6,000 or $7,000.

"It's very substantial savings that's going on right now," Gruwell said. "Not only for Chevrolet, which is a huge opportunity, but for all makes and all models for new vehicles."

Your trade-in cannot be more than 25 years old, must get 18 miles to the gallon or less and must be registered, insured and operational.

Gruwell said it's a win-win situation.

"It really helps out in a couple of different ways. A, it helps out the environment. And, it helps out the customer, the people buying a new car. It also helps out the auto industry which has been under a tremendous amount of pressure lately."

The Cash for Clunkers program has drawn the attention of the Better Business Bureau, which said specific guidelines for the program have not been released yet, creating some confusion.

The BBB said consumers should keep in mind that the program is for the purchase or lease of a new vehicle, not a used one, and that the manufacturer's suggested retail price cannot exceed $45,000. It also said that consumers will not get "cash back from the government," but the purchase price will be reduced by the allowable amount.

Consumers will not get the full value of a trade-in vehicle, but closer to the scrap value, because the law requires that the trade-in vehicle be destroyed, according to the BBB.

The program will end Nov. 1 or when the $1 billion that funds the program is exhausted, which ever comes first.

On the web:

• www.cars.gov

• www.chunkersaz.com

• www.arizonabbb.org