Press release
Source: AAA
ORLANDO, Fla., The U.S. federal government's Consumer Assistance to Recycle and Save (CARS) program, commonly referred to as "Cash for Clunkers," sparked a surge in new car sales in the U.S., but will come to an end on Monday, August 24 at 8 p.m. EDT. While the program can offer motorists a great incentive to purchase a new vehicle, AAA urges motorists wishing to take advantage of the program before it draws to a close to fully educate themselves about the program, their options and their potential new vehicle.
Things to Know Before Participating in CARS Program
1. Check the value of the trade-in vehicle in advance. If the value is greater than the $3500 or $4500 credit offered through the CARS program, consumers should sell their existing vehicle separately. Consumers can visit AAA.com/auto for assistance in determining the value of their existing vehicle.
2. Negotiate the best deal. Regardless of the incentives offered under this, or any other program, consumers should always negotiate the best possible deal on the three most important aspects of most vehicle purchase transactions
·Credit value for the trade-in
·Price of the new vehicle
·Terms of any credit needed to purchase the vehicle
In addition to the credit via the CARS program, consumers also may qualify for other dealer incentives, manufacturer rebates or federal incentives (such as those for hybrid vehicles). Not all deals will be the same, so consumers should continue to shop around.
3. Evaluate the total cost of vehicle ownership. Consumers should determine if a new vehicle is affordable and what type of new vehicle to purchase based on the total cost of vehicle ownership -- not just the purchase price. Other costs that should be considered include finance charges, insurance rates, fuel economy, taxes and registration fees, depreciation value and maintenance costs.
4. Consider used vehicles. While used vehicles do not qualify for the CARS program, depending on a consumer's financial situation, it may be a better alternative. While new vehicles can initially have lower repair costs due to manufacturer warranties, they also have far greater depreciation value initially. Consumers should weigh all their options before making a decision.
Source: AAA
ORLANDO, Fla., The U.S. federal government's Consumer Assistance to Recycle and Save (CARS) program, commonly referred to as "Cash for Clunkers," sparked a surge in new car sales in the U.S., but will come to an end on Monday, August 24 at 8 p.m. EDT. While the program can offer motorists a great incentive to purchase a new vehicle, AAA urges motorists wishing to take advantage of the program before it draws to a close to fully educate themselves about the program, their options and their potential new vehicle.
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Things to Know Before Participating in CARS Program
1. Check the value of the trade-in vehicle in advance. If the value is greater than the $3500 or $4500 credit offered through the CARS program, consumers should sell their existing vehicle separately. Consumers can visit AAA.com/auto for assistance in determining the value of their existing vehicle.
2. Negotiate the best deal. Regardless of the incentives offered under this, or any other program, consumers should always negotiate the best possible deal on the three most important aspects of most vehicle purchase transactions
·Credit value for the trade-in
·Price of the new vehicle
·Terms of any credit needed to purchase the vehicle
In addition to the credit via the CARS program, consumers also may qualify for other dealer incentives, manufacturer rebates or federal incentives (such as those for hybrid vehicles). Not all deals will be the same, so consumers should continue to shop around.
3. Evaluate the total cost of vehicle ownership. Consumers should determine if a new vehicle is affordable and what type of new vehicle to purchase based on the total cost of vehicle ownership -- not just the purchase price. Other costs that should be considered include finance charges, insurance rates, fuel economy, taxes and registration fees, depreciation value and maintenance costs.
4. Consider used vehicles. While used vehicles do not qualify for the CARS program, depending on a consumer's financial situation, it may be a better alternative. While new vehicles can initially have lower repair costs due to manufacturer warranties, they also have far greater depreciation value initially. Consumers should weigh all their options before making a decision.
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