The Cash for Clunkers bill goes into effect on Friday July 24th and the NHTSA launches their Car Allowance Rebate System (CARS).  The program will give consumers $3,500 or $4,500 toward the purchase of a new fuel efficient car or truck.  For program details visit http://wwwcashforclunkersfacts.com or the NHTSA website at http://www.cars.gov.

The government program is their own version of Cash for Cars but the key is to make sure your “clunker” qualifies.  If you qualify there is a small window of opportunity to buy a new car at significant savings.

Cash for Cars

For example, a 2009 Kia Spectra that has an starting MSRP of $13,550 can be reduce 59% if a consumer qualifies for the CARS $4,500 rebate since Kia is also also offering a $3,500 rebate. That’s a total of $8,000 bringing the car price down to $5,550. Every car that a Kia dealer sells at this price is a public relations bonanza.

Another example is a 2009 Hyundai Accent which has a started MSRP of $13,818.00. Consumer who purchase this car in July get a $1,500 factory rebate and if their clunker qualifies for a $4,500 credit that gives them a total of $6,000 toward a new Accent. This would reduce the cost of the MSRP by 43.4% which is like getting the car for half price.

On the domestic front, Ford car shoppers can get similar savings when they purchase a Ford Focus Coupe in July. With a $2,500 factory rebate and a $4,500 CARS credit consumers can deduct $7,000 off the price of a 2009 Ford Focus Coupe SE. This brings down the starting MSRP of $16,875 over 41% to $9,875. That’s a great story to tell and Ford dealers are ready to take advantage of this limited time program.

Without additional funding I predict the CARS program will run out of money by Labor Day weekend so consumers are encouraged to start shopping on Friday 24, 2009 and not delay their purchases until September or October.