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Entry bubble Can You Still Get Cash for Used Cars?

By: Joanne | August 04, 2009 | Category: Money

Car Allowance Rebate System (CARS) logoYou’re probably familiar with the CARS program by now – you know the program that offers cash to people who own old, fuel inefficient cars to help them buy new, fuel efficient cars.

Even though the program is still very new, it’s been so popular that it’s almost out of money. The Consumer Assistance to Recycle and Save Act of 2009 that created the program allocated only a billion dollars (I can’t believe that I just used the phrase “only a billion dollars”) for the whole program. When the money runs out, the program ends.

The House of Representatives has decided that they don’t want the program to end and passed a bill on Friday to allocate more money so more people can take advantage of the program. The Senate is considering the issue this week.

I did a post about the CARS program about a month ago, and I heard from a lot of you. Some people like the program, some people don’t. Many of you are like me and have an old clunker that doesn’t qualify for the program. Rats.

Well, now is the time to contact your Senator and let them know what you think about the program.

| View Comments [12] | envelope E-mail This Entry | Tags: car   cars   cash   clunkers   efficient   fuel   joanne   new   trade   used  

 

Entry bubble Cash for Your Used Car

By: Joanne | June 30, 2009 | Category: Money

Car Allowance Rebate System (CARS) logoLast week President Obama signed the Consumer Assistance to Recycle and Save Act of 2009 into law. The new Car Allowance Rebate System (CARS) program offers cash to people who own old, fuel inefficient cars to help them buy new, fuel efficient cars.

Sounds interesting? You bet. Who doesn’t want to spend less money on gas, reduce greenhouse gas emissions, reduce our dependency on oil and increase energy sustainability AND get a shiny new car in the deal?

How does it work? Now that it’s a law, program details are available. Here are some quick facts – visit cars.gov for more details.

 

  • The amount of the credit is $3,500 or $4,500 depending on what you trade in and what you buy
  • Your car must be less than 25 years old
  • You must buy or lease a new car
  • Generally, your trade-in must get 18 or less miles per gallon (some very large pick-up trucks and cargo vans have different requirements)
  • Your trade-in must be registered and insured continuously for the full year before 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 vehicle that you are trading in is required to be destroyed. Therefore, the value you negotiate with the dealer for your trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to you an estimate of the scrap value of your trade-in vehicle.

 

Watch out, I’ve already heard reports that fraudulent websites have popped up, pretending to offer information about the CARS program but they’re really phishing for your personal information. Stick with the official CARS website for official program information.

p.s. Don't forget to submit your Independence Day photos on the USA.gov and GobiernoUSA.gov Flickr Group

| View Comments [16] | envelope E-mail This Entry | Tags: car   cars   cash   clunkers   efficient   fuel   joanne   new   trade   used  

 

Entry bubble New Gas Mileage Rates and Estimates

By: Jake | June 30, 2008 | Category: Money

Those of you who use your car for business purposes can rejoice a little bit. The Internal Revenue Service increased the optional standard mileage rates for the rest of the year because of rising gas prices.

For every business mile driven from July 1 to December 31, 2008 taxpayers can use the rate of 58.5 cents to calculate deductible costs, 8 cents more than the 50.5 than the first half of 2008. The IRS also increased the standard deductible rates for medical/moving purposes from 19 to 27 cents. The agency doesn't normally change rates midyear but decided it was necessary due to rising gas prices.Fuel Pump

This change means that federal government employees who use their own cars for government work may see an increase in their reimbursement rates since the U.S. General Services Administration announced they're reviewing privately owned vehicle reimbursement rates. UPDATE: On August 1, 2008 the new rate for federal employees will be 58.5 cents per mile.

It seems whenever I post about something related to gas prices I get a few comments about specific types of cars. So I thought I'd mention that 55 years ago today the first Chevrolet Corvette rolled off the assembly line in Flint, Michigan.

The Environmental Protection Agency recently adjusted automobile gasoline mile per gallon estimates to take into account idling and other driver habits to make them more realistic. Fueleconomy.gov applied these new estimates to every automobile manufactured since 1985.

I am curious how many miles per gallon of gasoline the 1955 Corvette got. By the new estimates a 1985 Corvette gets about 15 miles a gallon in the city and 20 on the highway. I bet the 1955 Corvette gets far less. Does anyone know?

| View Comments [6] | envelope E-mail This Entry | Tags: business_mileage   fuel   gas_mileage   jake   tax  

 

Entry bubble The Future of Automobile Fuel

By: Jake | June 02, 2008 | Category: Money

The Toyota Matrix I bought two weeks ago may be the last fully gasoline-powered car I ever buy. I believe this because gasoline prices are high, alternative fuels and cars are continually developing, and by the time I buy my next car (10 years—fingers crossed) there should be a lot more options than just gas-powered cars.

After my post about why gasoline prices are rising, a few of you wanted me to write about research on alternative fuel sources. The United States Department of Energy has a website devoted to alternative fuels and vehicles. These vehicles generally cost more than conventional vehicles, but are friendlier on the environment, come with federal tax incentives and generally use cheaper fuel (if you can find it).Hydrogen

Alternative fuels are not derived from petroleum. Most of the time they are made from renewable resources and produce less pollution than gas and diesel. Natural gas and propane are in this group along with ethanol, which is produced from corn. Bio-diesel and many emerging fuels are produced from vegetable oils and animal fats.

The most interesting and most controversial alternative fuel is H2 or hydrogen which can be produced from fossil fuels, nuclear energy, photobiology and other methods. The only runoff that hydrogen cars produce is water, so there is no impact on the environment. Fuel cell vehicles are powered by hydrogen but are currently not in mass production.

There are other alternative fuel and advanced vehicles in production, but they are a little pricier than your conventional fully gasoline-fueled car. You've probably seen hybrid cars around, which are a combination of electric and gasoline power and seem the be the most cost-effective for many people these days.

It's a changing time for automobile production, and it'll be interesting to see what we will be test driving in the coming years.

| View Comments [10] | envelope E-mail This Entry | Tags: alternative   biodiesel   ethanol   fuel   fuel cell   gas   hybrid   hydrogen   jake   natural   propane  

 

Entry bubble Why Are Gasoline Prices So High?

By: Jake | May 26, 2008 | Category: Money

My post last week about saving money on gas had many of you asking why the price of gasoline was so high. You weren't the only ones.

Congress brought executives from oil companies to Capitol Hill last week and asked them to explain the price hikes. Unfortunately, there weren't too many clear answers. I'm not an oil expert or economist, but in this post I'll try to shed light on why gasoline prices are high.EIA Gasoline Price Chart

The Energy Information Administration (EIA) of the Department of Energy (their job: to provide neutral data regarding energy in the U.S) says the cost of crude oil is the main contributor to the price of gasoline. Crude oil accounts for 70% of the price at the pump. According to the EIA, the spot price of West Texas Intermediate crude oil, which is the U.S. benchmark for light, sweet crude oil, has risen steadily from $101.54 per barrel on March 31 to a record high of $128.93 per barrel on May 20.

The main reason for crude oil's price increase is high worldwide demand. Countries like China (especially with the recent earthquake) have increased their imports of petroleum. Political events and conflicts in oil producing countries also affect the price. What's more interesting is that crude oil is traded worldwide in U.S. dollars and since the value of the dollar is declining, it causes the price of crude to go up.

In the EIA's "This Week in Petroleum" published May 21, they project prices will go up in June and will rise as long as the price of crude oil keeps increasing. The report adds that the usual Memorial Day and summer travel season increase in demand should be lower due to higher prices, but this will not have too much of an effect on price since millions will still travel. Policymakers have proposed lowering or repealing gas taxes, but it's not certain how much this would lower the price.

As long as the price of crude oil continues to rise, we'll be paying more for gasoline. Let's hope gasoline will never cost more than a gallon of beer or ketchup.

| View Comments [21] | envelope E-mail This Entry | Tags: economy   fuel   gas   gasoline   jake   oil   world  

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