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CarStuff

How the Cash Allowance Rebate System Works

CarStuff

iHeartPodcasts

History, Leisure, Automotive

4.4584 Ratings

🗓️ 30 July 2009

⏱️ 15 minutes

🧾️ Download transcript

Summary

Join Scott and guest host Jennifer as they take a look at the 'Cash For Clunkers' program. This subsidy may give you up to 4500 dollars to trade a gas-guzzler for a more efficient vehicle. Learn more in this podcast from HowStuffWorks.com.

Transcript

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0:00.0

This is an IHeart podcast.

0:04.4

Go behind the wheel and under the hood on everything automotive with high-speed stuff from How StuffWorks.com.

0:16.3

Hello, everybody, and welcome to the podcast. I'm Scott Benjamin. I'm the auto editor here at How StuffWorks.com, and today I'm joined by a special guest, Jennifer Geiger.

0:25.2

Hi, Jennifer.

0:26.0

Hi, how are you?

0:26.9

All right, thank you. And Jennifer is the online managing editor at consumer guide.com, and she's going to be talking with us today a little bit about the Cash for Clunkers program.

0:38.1

Yes, Cash for Clunkers is kind of a very complicated way to get older gas-guzzling cars off of the highway.

0:47.0

Oh, that's good.

0:47.5

The $1 billion government subsidy plan, and it gives consumers between $3,500 and $4,500 to trade in their really high gas-guzzling vehicle for a more fuel-efficient one.

1:02.1

That seems to make sense anyways.

1:04.0

So the idea is that you trade in your old vehicle for a voucher, right?

1:08.3

Right, yeah.

1:09.1

It's a 1985 or newer car.

1:12.2

Those qualify, and your car has to get 18 miles per gallon or less in order to qualify.

1:18.8

Your new car has to get 22 miles per gallon or more to qualify.

1:24.1

And depending on the miles per gallon difference in between, you can get a $3,500

1:28.6

voucher or a $4,500 voucher.

1:31.4

Okay. Well, that doesn't sound too strict, but 18 miles per gallon, I don't know,

1:36.9

that sounds a little bit like, it's kind of high mileage, really.

1:39.8

Well, yeah, not a lot of cars are going to qualify. We actually did a little study on

1:43.8

Consumer Guide.com's website doing some research for this article, and we found out that a lot

1:48.4

of popular older cars just won't qualify because they got better mileage. Like a 1988

...

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