Transportation Secretary: Car dealers will 'get their money' - Spokane, North Idaho News & Weather KHQ.com

Transportation Secretary: Car dealers will 'get their money'

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WASHINGTON. - Transportation Secretary Ray LaHood is assuring car dealers that they will be reimbursed for the popular 'Cash for Clunkers' program.

LaHood told reporters Wednesday he understands that some dealers are frustrated about delays in getting paid for the $3 billion car rebate program.

"They're going to get their money," said LaHood.

LaHood says the Obama administration plans to provide more details this week on how much longer the car incentive program will last.

Some dealers have said their reimbursement requests have not been approved, leading to a cash crunch. Through Tuesday, auto dealers have made deals worth $1.72 billion. The program offers car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models.

Qualifying for 'Cash for Clunkers' program

Your trade-in vehicle must

  • have been manufactured less than 25 years before the date you trade it in
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  • be in drivable condition
  • be continuously insured and registered to the same owner for the full year preceding the trade-in
  • The trade-in vehicle must have been manufactured not earlier than 25 years before the date of trade in and, in the case of a category 3 vehicle, must also have been manufactured not later than model year 2001

Heavy duty trucks and vans are applicable but have different rules.

The new vehicle has to meet several requirements as well.

  • It must be a new car either purchased or leased for five years.
  • The car must have a MSRP of $45,000 or less and the car must be rated to get 22 miles per gallon combined. The combined gas mileage is the number in between city and highway on the sticker

You can get $3,500 if your new car gets between 5 and 9 miles per gallon more than your old car, but if you bump that number to ten more than you can get $4,500.

The rebate is not on top of the trade in value because it is the trade in value.

If you use this program your car will not be resold, instead, it will be stripped and crushed. (See video to right of story)

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