Got rid of my 1987 Dodge w150 cash for clunkers
- Thread starter cavemanmoron
- Start date
-
ILLDuster74
Well-Known Member
The cars are scrapped it is a requirement of the bill.
Important Things to Know
--------------------------------------------------------------------------------
Your vehicle must be less than 25 years old on the trade-in date
Only purchase or lease of new vehicles qualify
Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
You don't need a voucher, dealers will apply a credit at purchase
Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.
Check this site frequently for the most recent updates from the government.
Sorry Mikes Toy this is from the gov. website CARS.gov
Important Things to Know
--------------------------------------------------------------------------------
Your vehicle must be less than 25 years old on the trade-in date
Only purchase or lease of new vehicles qualify
Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
You don't need a voucher, dealers will apply a credit at purchase
Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.
Check this site frequently for the most recent updates from the government.
Sorry Mikes Toy this is from the gov. website CARS.gov
MCMLXXI
Active Member
"The program requires the scrapping of your eligible trade-in vehicle"
This doesn't necessarily mean shredded. The definition of 'scrap' is what many are hung up on...as long as the engine is seized, if a wrecking yard wants to buy these vehicles and dismantle them for resale of parts, they can. This is considered scrapping the vehicle under this program. Most of the vehicles in our area are going to the largest auto recycler in the area. A number of yards submit bids to the dealers for the vehicles and the highest bid gets it.
"are you aware that you have to claim that money as income on your taxes for state and fed next year?"
This is not a true statement. "The CARS Act expressly provides that the credit is not income for the consumer." Check www.cars.gov for more info.
This doesn't necessarily mean shredded. The definition of 'scrap' is what many are hung up on...as long as the engine is seized, if a wrecking yard wants to buy these vehicles and dismantle them for resale of parts, they can. This is considered scrapping the vehicle under this program. Most of the vehicles in our area are going to the largest auto recycler in the area. A number of yards submit bids to the dealers for the vehicles and the highest bid gets it.
"are you aware that you have to claim that money as income on your taxes for state and fed next year?"
This is not a true statement. "The CARS Act expressly provides that the credit is not income for the consumer." Check www.cars.gov for more info.
Elvis
Member
You guys would make a mint if you could somehow cheaply get all your 'clunkers' as you call them, and sell them over here in Australia.
I agree with all your concerns too. Over here they're making it harder and harder to own older cars, registering a V8 in my state is now close to $1000 a year, and fuel is around $1.25 a litre which I think would equate to about $5.70 a gallon for you guys!
I agree with all your concerns too. Over here they're making it harder and harder to own older cars, registering a V8 in my state is now close to $1000 a year, and fuel is around $1.25 a litre which I think would equate to about $5.70 a gallon for you guys!
ILLDuster74
Well-Known Member
Scrapping is destroying the car, recycling is reusing the parts.Scrapping is scrapping. They CANNOT be sold to junk/parts recycling yards, the vehicles cannot be resold and selling to a recycler is reselling. The vehicles must be crushed, but the crusher may remove parts, excluding engine and drive train, to be sold. No scrap metal dealer I know of has a "parts" area so all of the vehicle will be scrapped so they get max money for the vehicle by weight.
cavemanmoron
Well-Known Member
http://www.cars.gov/faq#category-14
Scrap value
What happens to the vehicle I trade in?
The CARS Act requires that the trade-in vehicle be crushed or shredded so that it will not be resold for use in the United States or elsewhere as an automobile. The entity crushing or shredding the vehicles in this manner will be allowed to sell some parts of the vehicle prior to crushing or shredding it, but these parts cannot include the engine or the drive train.
Taxes
Is the credit subject to being taxed as income to the consumers that participate in the program?
The CARS Act expressly provides that the credit is not income for the consumer.
-
