Veteran North Texas car dealer James Wood calls it an excellent way to help motorists pay for a fuel-efficient new car or truck while getting rid of a gas guzzler.
The program applies to both domestic and foreign vehicles that are new. Wood sells both General Motors and Hyundai products in Decatur. His Denton dealership is exclusively GM and includes Cadillac as well as Buick, Chevrolet, GMC and Pontiac.
The just-enacted Consumer Assistance to Recycle and Save Act provides $1 billion for the National Highway Traffic Safety Administration to buy and scrap vehicles not more than 25 years old that get no more than 18 miles per gallon (MPG) on the federal government's Combined Fuel Economy Value scale.
A new passenger car must get at least 22 MPG to be eligible for an allowance on a drivable trade-in.
A customer will qualify for $4500 toward the purchase or long-term lease of a car that gets at least 10 MPG more than their trade-in. The allowance is $3500 for a 4 MPG increase in fuel efficiency.
The buyer of a light-duty truck will get $4500 for a 5 MPG improvement or $3,500 for a 2 MPG increase. The minimum is 18 MPG for such a new category-1 truck (gross vehicle weight under 6,000 pounds).
A large light-duty truck qualifies for $4,500 with a 2 MPG improvement or $3,500 for 1 MPG. The new category-2 truck (GVW 6000-8500 pounds) must get at least 15 MPG.
New commercial trucks and vans (GVW 8,500-10,000 pounds) qualify for $3500 if the trade-in was built prior to 2002.
Wood pointed out that there is no maximum income level for a vehicle owner, and no voucher is needed to participate. The dealership handles all the paperwork.
The maximum Manufacturer's Suggested Retail Price for the vehicle being purchased is $45,000.
The customer must have held a registered, valid legal title to their properly-insured trade-in for a full year. "You can't go to the junk yard to buy you a trade-in for this program," Wood noted.
With a dealer's help a motorist can easily determine if the vehicle they wish to buy and their trade-in both qualify.
They can also find more information at cars.gov, the official federal web site. It includes fuel ratings.
"This is one way for taxpayers to benefit directly from the income taxes they send to Washington, D.C.," Wood said. "And it will help lessen our dependence on oil coming from some of those less stable parts of the world that we've been hearing about lately."
