Cash for clunkers has curious car-hunting

Car shoppers can take advantage of new government incentives worth $3,500 to $4,500, and trade in a clunker for a new, more fuel-efficient vehicle.

The federal "cash for clunkers" program started Friday and some local dealerships are already starting to see prospective buyers.

In an effort to spur auto sales and retire some fuel inefficient cars and trucks from the road, Congress approved $1 billion for drivers to trade in their cars for models that get more miles per gallon of gasoline. New vehicles must have a price of less than $45,000.

Tom Van Prooyen, owner of Schepel Buick-GMC Truck in Merrillville, said word of mouth for the program had people expressing interest in a trade-in for the last month.

"It is stimulating interest in car sales and definitely might create some sales where there weren't before," Van Prooyen said. "People are finding out maybe we don't qualify, but it's putting more interest in making an automotive purchase."

To participate in the program, vehicles must meet several benchmarks:

* It must have been manufactured less than 25 years before the date you trade it in, but no later than 2001.

* It must have a combined city/highway fuel economy of 18 miles per gallon or less and be in drivable condition.

* The vehicle must be continuously insured, titled and registered to the same owner for the full year preceding the trade-in.

Van Prooyen said the last qualification prevents people from just trading in a clunker that they haven't insured in years.

He said it's worth checking out a vehicle's blue book value before taking advantage of the program.

"If your vehicle is worth $5,000 or $8,000, you probably don't want to use this program; you would probably want to trade it in on its own," Van Prooyen said.

The incentives vary depending on the fuel efficiency of the new vehicle. For example, with passenger cars, consumers can get $3,500 if the new vehicle gets at least 4 mpg more than the trade-in and $4,500 if the new vehicle gets at least 10 mpg more than the trade-in.

With SUVs, pickups or minivans, owners can get a $3,500 rebate if the new vehicle gets at least 2 mpg higher and $4,500 if the new vehicle gets at least 5 mpg higher than the trade-in. Large work trucks weighing at least 6,000 pounds can also qualify for rebates of $3,500 to $4,500.

Dealers must use the rebate in addition to -- instead of as a substitute for -- other rebates and discounts available to consumers. Many automakers are combining internal incentives with the government rebates to lure customers to showrooms. For example, Chrysler is offering $4,500 in cash toward the purchase of a new vehicle. Dealers are also required to disclose the best estimate of the salvage value of each vehicle.

The program will be in effect until Nov. 1. link.....