SayEducate has been keeping tabs on the “cash for clunkers” legislation as it was being debated in Congress. For the past several months members of the House and the Senate have been working on a bill whereby consumers might be able to turn their older vehicles in for scrappage, receiving a federal credit in exchange for buying a new car.

Well, a bill was passed by both the House and the Senate and signed into law by President Obama last week. Though certain details still must be hammered out, the “Car Allowance Rebate System” (or CARS) program as it is called will kick in no later than July 23rd, giving consumers an unusual and limited time opportunity to save money on their new car purchase.

Not every consumer will be eligible to participate in the CARS program for several reasons: only one billion dollars was set aside for the program which means at $3500 to $4500 a pop, 250,000 new cars will be covered. The program is scheduled to last until November 1st or when funds dry up, with the likelihood that happening much sooner being great.

Another thing consumers need to keep in mind is that most eligible vehicles must get 18 mpg or worse and can’t be older than a 1984 model. There are a number of vehicles that meet this criteria, but the new vehicle being purchased has to meet certain fuel mileage requirements in order to qualify.

In order to find out if you qualify and what the program is all about, the federal government wants consumers to know about Cars.gov, a site created to explain the program as well as share with you current information. In addition, the CARS website can help you with:

Determine if you qualify – If you meet the program’s parameters then you can start shopping around for a new car.

Bring paperwork — When you’re ready to buy, then you need to bring your paperwork with you to the new car showroom. Buyers need to have their registration, title and insurance information with them. Dealers will be checking to make sure that your car is drivable and has been registered and insured for the past year.

Dealer’s responsibility — Eligible buyers will be able to knock $3500 to $4500 off of the final negotiated price for their vehicle, but it’ll be up to the new car dealer to get his credit from the federal government. This means that once the dealer determines your eligibility, they’ll subtract the federal credit from your price. Your dealer will “deal” with the government from this point on, not you.

Will the federal government extend the CARS program if it turns out to be more popular than anticipated? Perhaps. However, if you want to participate then check your eligibility and gather your paperwork right away.  Once the program starts showroom traffic will increase sharply which means that you’ll have to act fast in order to get the car that you want.

Adv. — If you are considering purchasing a new car, there are some steps you can take to make sure that you get the best deal. Come on over and visit SayLending.com for auto loans information including new car research to help you find the vehicle that meets your needs.

Tags: Car Allowance Rebate System, car scrappage, cars.gov, cash for clunkers, new cars

This past April, SayEducate.Com made mention of the federal government’s “Cash For Clunkers” program, a plan where car buyers would be able to trade in their older, gas guzzling models for new, more fuel efficient vehicles. That program has been debated for several months now, but the U.S. House of Representatives finally passed the bill on Tuesday (H.R. 2751) which means that the legislation will now be taken up by the Senate.

Should the U.S. Senate decide to pass a similar version of the bill, it’ll go on to the executive branch where President Obama has promised to sign it into law. Though it may take a few months before it kicks in, “Cash For Clunkers” could bring significant savings to the consumer who is planning to buy a new car. However, before that happens, there are a few things you should know about the program before you decide whether to participate or not.

Cash For Clunkers: A Primer

As it stands right now, the following are the highlights of the Cash For Clunkers program:

Poor MPG Vehicles Only — Unless you have a vehicle that gets worse than 18 mpg, you cannot trade in your old car and get the credit which reportedly will be between $3500 to $4500. A few newer vehicles like the Hummer, qualify, but you’ll want to skip this program if the residual value of your trade in is greater than the credit offered.

Scrapped & Gone — Whatever vehicle you own, it will no longer be used meaning when you turn it in, it’ll be sent to the scrap yard with perhaps some of its parts recycled.  You may not care what becomes of your vehicle at trade in, but if you’re hoping that it will be reused, it won’t be.

Registered & Insured –  Don’t think for a moment that the beater you have sitting on blocks in your back yard qualifies. Unless, of course, you have had it registered and insured for the past year. The federal government isn’t going to take your junker unless you’ve been paying insurance on it and it has been registered with the state.

Lots of people who have been waiting for this bill and holding off on their new car purchase will be disappointed if the House bill becomes law with no changes to it. With so few vehicles eligible and trade in values not making it worthwhile for newer vehicle owners to trade in, there is a good chance that the four billion dollars that Congress has allocated for this program may never be completely used.

Then again, we’re talking about the federal government which has shown an awful habit these past several years of spending whatever money they can get their hands on while offering assistance programs that don’t go far enough or are ill-advised in the first place.

Source: Auto Trends

Adv. — Visit the nBuy Shopping Plaza to find savings on all of your purchases. You can earn shopping rebates, find school supplies, and save on stuff for your car.

Tags: cash for clunkers, Congress, federal government, new cars, President Obama

The Nissan GT-R sportscar is a fantastic ride, but it also carries a premium to go with its expensive price: the GT-R is the most expensive car to insure according to a recently published survey by Insure.com.

Consumers who are considering making a new car purchase are likely to find some of the best buys this year. That is because auto sales are way down and car manufacturers are looking to move inventory and are willing to trim thousands of dollars off of the price of their vehicles. Clearly, it is a buyer’s market when it comes to purchasing a new car, something that will not last as inventory is adjusted to meet sales expectations.

One area that consumers should consider when making any new car purchase is car insurance. You may be able to save thousands of dollars off of the sticker price, but you could end up paying thousands of dollars extra over the next five years in elevated insurance premiums, effectively eating up what you saved initially.

Thanks to a survey recently conducted by Insure.com, you can find out how some of the top cars rated, a good measuring stick to find out what your insurance costs will be. In all cases, call your insurance agent first to get an estimate of what your new car insurance will cost you. You may be in for the surprise of your life, hopefully a good one at that!

                  The 20 most expensive 2009 vehicles to insure

                   Average   Vehicle                      Class
         Rank      Premium
           1       $2,533  Nissan GT-R                  Sports car
           2       $2,446  Dodge Viper                  Sports car
           3       $2,236  BMW M6                       Sports car
           4       $2,186  Ford Shelby GT500            Sports car
           5       $2,088  Mercedes-Benz G-Class        Large SUV
           6       $2,071  Audi S8                      Passenger car
           7       $2,020  BMW M5                       Sports car
           8       $1,912  Hummer H2                    Large SUV
           9       $1,881  Lexus ISF                    Sports car
          10       $1,819  Porsche 911                  Sports car
          11       $1,762  Chevrolet Cobalt SS          Sports car
          12       $1,717  Jaguar XK Series             Sports car
          13       $1,714  BMW M3                       Sports car
          14       $1,694  Cadillac XLR                 Sports car
          15       $1,637  Audi R8                      Sports car
          16       $1,603  Land Rover Range Rover       Large SUV
          17       $1,592  Cadillac Escalade EXT        Truck
          18       $1,587  Honda S2000                  Sports car
          19       $1,584  BMW X6                       Large SUV
          20       $1,577  Mercedes-Benz SL-Class       Passenger car

If low premiums are more your speed, the "least expensive" list
contains a good selection of SUVs, minivans and passenger cars. Low
insurance rates tend to reflect a vehicle's safety because drivers of
those models have submitted fewer and less-expensive insurance claims.

          The 20 least expensive 2009 vehicles to insure

                Average    Vehicle                    Class
     Rank      Premium
       1         $832  Hyundai Santa Fe             Midsize SUV
       2         $840  Kia Sportage                 Small SUV
       3         $848  Hyundai Entourage            Minivan
       4         $857  Kia Sedona                   Minivan
       5         $870  Kia Rio5                     Small wagon
       6         $871  Honda Odyssey                Minivan
       7         $881  Smart Fortwo                 Passenger car
       8         $911  Saturn Vue                   SUV
       9         $913  Mazda Tribute                SUV
      10         $915  Chrysler Town & Country      Minivan
      11         $921  Scion xB                     Small wagon
      12         $929  Mazda Mazda5                 Minivan
      13         $936  Volkswagen Passat            Passenger car
      14         $939  Jeep Wrangler                SUV
      15         $951  Honda Accord                 Passenger car
      16         $954  Suzuki Forenza               Passenger car
      17         $955  Lincoln Town Car             Passenger car
      18         $957  Mazda Truck                  Pickup
      19         $959  Chevrolet Impala             Passenger car
      20         $960  Dodge Grand Caravan          Minivan

“If you’re looking to get the lowest car insurance price possible, these rankings can point you in the direction of vehicles that can help you get there,” said Amy Danise, editor of Insure.com. “Maintaining a good driving history and good credit are also crucial to getting good rates. Your age and location also have a big impact. Shopping around is the No. 1 easiest way to lower your rate, even if you can’t change your other ‘risk’ factors.”

Source: Insure.com

Adv. — You’re planning to buy a new car, but should you accept dealer financing or shop around for the best deal? If it is a choice between getting a nice rebate or low interest financing, take the money and shop for an auto loan elsewhere. Visit SayLending.com for all of your lending needs including new and used car auto loans at rates you can afford.

Photo courtesy of Nissan Motors.

Tags: auto insurance, car insurance, insurance premiums