CARS goes into effect

A few weeks ago, I blogged about the impending Cash for Clunkers bill that was working its way through the Congress. Well, the bill has passed, and has been signed into law by President Obama.

My colleague Keith Griffin, About.com's Guide to Used Cars, has written an excellent, detailed analysis of the Car Allowance Rebate System (CARS) on his site, and reading it clarified the program for me.

I was a little confused about one point until I read Keith's article. I didn't realize that it was an either/or choice -- you can either get a trade-in allowance or a CARS credit, but not both. According to Keith, "Keep in mind that you either get a government credit or you get a trade in allowance from your dealer. You can't get both because the car gets destroyed."

That pretty much sealed the deal for me: Moose is safe from the crusher. Even though my 1994 Toyota 4Runner now has an absolute value of $4,500 against the purchase or lease of a new vehicle, I could never send Moose to the crusher.

Are you taking advantage of CARS to get a new SUV or crossover? Read Keith's excellent article, Advice and Tips on How Cash for Clunkers (or CARS) Works, before you head out to the dealer.

Photo © Jason Fogelson