Edmunds Provides List of Vehicles Eligible for "Cash for Clunkers" Rebate

SANTA MONICA, CA - June 11, 2009: Now that “Cash for Clunkers” has been approved by the U.S. House of Representatives, it is likely to be made into law by the end of the summer. Wondering if you would qualify to participate? Keep in mind that:

• It will offer no more than $4,500 to new car buyers.
• It will require the trade-in vehicle to be crushed (which means that owners will not collect any trade-in value.)
• Cars to be scrapped would have to have EPA combined fuel economy ratings of 18 miles per gallon or less, and the new vehicle purchased must earn better mileage.
• The participant must have owned the “clunker” for one year.

“If you can get more than $4,500 for your vehicle, you're better off selling it or trading it in without taking advantage of the Cash for Clunkers rebate,” stated Edmunds.com Editor In Chief Karl Brauer, who addresses this topic on his blog, Karl on Cars.

Edmunds.com has compiled a list of “clunkers” whose owners would benefit from pursuing the rebate. Here are some examples of eligible vehicles:

Year		Model		Combined EPA miles per gallon rating		True Market Value® Trade-In Price
1996		Honda Passport		15		$1,227
1997		Lincoln Continental		18		$1,179
1998		Chevrolet Silverado		14		$3,378
1995		Audi A6		18		$1,261
1996		Toyota Land Cruiser		13		$4,042

“This legislation attempts to offer a benefit for the environment and to spur vehicle sales, but the reality is that it does neither very well," asserted Edmunds.com CEO Jeremy Anwyl. “In terms of vehicle sales, the only consumers who will be interested are those willing to take no more than $4,500 for their current car and yet be financially able to buy a new one – quite a narrow profile.”

He recommends that legislators delete the one-year ownership requirement. “If the goal is to remove old cars from the road, why should it matter who owns them and for how long?” Anwyl questioned. He notes that deleting this requirement could really stimulate the economy by prompting as many as three car sales per participant:

1. the sale of the clunker to the participant

2. the replacement of the clunker by its previous owner (likely a used car sale)

3. the purchase of the new car by the participant (necessary to qualify for the program)

In some states, this will even generate sales tax on all three sales.

Anwyl also suggests that the scrappage requirement be eliminated so that a larger population can benefit from the program. “If owners of newer, less fuel efficient vehicles could get above a fair value for their trade-ins rather than just the government allowance, more people would likely participate and car sales might truly be reignited,” he claimed.

The environmental benefits of the program in its current form are not expected to be significant either. Edmunds’ Green Car Advisor Editor John O’Dell reported, “The idea sounds like it has good green credentials, but it isn't likely to move the needle very far.”

O’Dell continued, “Fortunately, the bill still has to be approved, or altered, by the Senate. Unfortunately, most senators seem little interested in either increasing the financial incentives or the bill's green footprint.” California Democrat Sen. Diane Feinstein’s countermeasure allegedly would result in a 32 percent increase in fuel savings and won the backing of most major environmental groups, but is unlikely to prevail.