Ford Clunker Calculator
GM Clunker Calculator
A $3500 or $4500 junker credit. That is the question. Whether you trade up by a 4, 2, 1, or NA MPG increase for $3500 tax credit or 10, 5, 2 increase and a $4500 junker credit really is the question. The above web addresses will help in determining what combination your particular situation may dictate.
The above would be a web address with a grid list. Look at this grid also.
Purchasing or getting a qualified leased car which is new. But it must also be a more fuel-efficient car or truck.
WARNING: This credit allowance of a total of $1 Billion program is good until November 1, 2009 or until the money runs-out. So effectively you need to treat this as grant money and know that grant money does run out eventually and the ones in line first get the money first. And Yes, November 1, 2009 does land on a Sunday but the law specifically ends on a Sunday for the grants.
What are the qualifications for this program. What vehicles qualify.
* The trade-in vehicle must meet the following criteria.
* Have been manufactured less than 25 years before the date you trade it in.
* Have a “new” combined city/highway fuel economy of 18 miles per gallon or less.
* Be in drivable condition.
* Be continuously insured and registered to the same owner for the full year preceding the trade-in.
* If leased the lease must be for a five year period of time minimum.
As an example Ford, Lincoln and Mercury have 20 vehicles together which qualify as new or leased vehicles which may give you a $3500 or $4500 purchasing credit. Notice that the cost of a vehicle cannot exceed $45,000.
Will the full value of the clunker be a fair value. I do not believe it will be fair at all. If you present your purchase first and get the deal and then bring in your clunker for the end of the deal. At the present time the scrap metal value is low. Steel is still at a high price in the warehouses and the price of steel spot is lower. Ship owners are stalling on retrofiting their boats and waiting for the price of steel to come down. Your car would be just reducing the spot price further and stalling the ship yard work until a later day and time. Could this be further than November 1. This is a question which you will have to ask. This boat owner stall has already lasted for over one year. Will it continue. I believe it will. The price of fish is lower. The price of the cabin is lower. The price of shipping and the amount of tonnage shipped is lower.
One caveat is that a truck which does not have an EPA fuel economy number must be from a model year of 2001 or earlier. Scrap metal and $3500. Even with this qualification satisfied look at the powertrain to see if your vehicle also would qualify. Again, the value of the purchase cannot exceed $45,000.
Remember to negotiate on all aspects of your vehicle. Check the weight of the vehicle. Look at the spot price of steel for the day. I do not know which day the spot price is generally better if any. Call a commodities broker and ask. Maybe a seasonal swing occurs each year. Rough weather in the fall perhaps might be a heavy steel purchasing time.
Combine your purchase with a hybrid vehicle tax credit. But also keep in mind that hybrid vehicles have a maximum life also. New year vehicle purchases end when 60,000 vehicles are purchased. The Prius expired last year for its credit. Other models which came out after the Prius are still available. Do not forget to look at Diesel Engine models as well. Don’t forget to include the sales tax of the general sales tax for your state as an add-on for your standard deduction amount on your federal income tax return. Some states may also provide an additional standard amount for the auto sales tax purchase as well. With the sales tax standard deduction a maximum purchase price is $49,500 and a phased out over modified AGI range of $125,000-$135,000 ($250,000-$260,000 if married filing jointly) may need to be looked at as well. The standard deduction applies only to purchases made after February 16, 2009, and before January 1, 2010. Caution says to keep track of the dates. Or better yet make sure you purchase prior to November 1, 2009 or before the Junker Credit runs out and keep the purchase price below $45,000 or negotiate the purchase price down to $45,000 or below.
If all else fails, buy a used car and wait for a hydrogen fuel source vehicle. A new hydrogen plant to be built was announced last week for Arizona.
Don’t forget about the plug-ins. Oh, are they available as of yet. Too late for this credit.
Or just give up and tell your boss you need to apply for the $20 per month credit for riding your bicycle to work every day under the Commuter Transportation Benefits. Restrictions do apply, yet they are for providing for the reimbursement by an employer to an employee for reasonable expenses for the purchase of a bicycle, improvements, repair, and storage if he bicycle is regularly used for commuting. Hopefully you commute one mile. Maybe with a unicycle it is $10 per month. I have not specifically looked to see if unicycles are considered a qualified alternative mood of transportation. If it is then roller blades or skateboards should be included if they are not motorized.