So, you will have to negotiate a value for your used car with your dealer. Most people will likely receive little more than scrap value for their trade-ins, and the law also requires dealers to disclose an estimated scrap value.
According to Richard Ebner, owner of Ebner & Sons, 420 E. North St., there is a big difference between the trade-in value and scrap value for many cars.
“A reasonable estimated scrap value for a sedan is between $100 to $200,” he said.
Officially called the Car Allowance Rebate System, the program offers credits between $3,500 and $4,500 to consumers who trade in a qualifying older vehicle for a more fuel-efficient new vehicle.
You have to buy or lease a new vehicle. No exceptions.
There are specific vehicle qualifications and the amount of credit normally depends on two things: your new car choice and the difference in fuel economy between that vehicle and your trade-in.
Trade-in vehicles must be less than 25 years old by the trade-in date, in drivable condition and continuously insured and registered by the same person one year before trade-in date.
Other stipulations apply; a complete list of parameters is available at cars.gov or by calling the CARS information hotline at (866) CAR-7891.
To complicate things further, revised fuel economy ratings from the U.S. Environmental Protection Agency were implemented in 2008.
Included in the newer ratings are the effects of faster driving speeds and acceleration, air conditioner use and colder outside temperatures.
Bottom line: the new estimates lower the MPG ratings for most vehicles, which may help in increasing the MPG difference between the old and new vehicles.
To find out the fuel efficiency of your vehicle, go to fueleconomy.gov.
Unfortunately, the scammers are already at work.
Ohio Attorney General Richard Cordray is warning residents that scammers are creating Web sites claiming to provide registration for the program.
To participate, you only need to interact with a authorized dealer. There are no required pre-registrations of any kind.
Some sites are asking for personal information, including addresses and social security numbers or promising to put consumers in touch with authorized dealers.
Never give personal information to someone you don’t know as it could easily be used for identity theft.
To report a scam, contact Attorney General Cordray’s Office at SpeakOutOhio.gov or call (800) 282-0515.
You can also report possible scams to the CARS program directly at (866)-CAR-7891 or TTY at (800)-424-9153.
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