The Cash for Clunker bill was recently passed and many Americans may be falsely excited to find out which cars are eligible. The plan basically says that the government will pay $4500 towards a new fuel efficient car if you trade-in your old clunker. All I ask is to weigh out buying a used engine for your car, compared to a new car. Here is the plan.

1) Operational.
2) Rated at no more than 18 miles per gallon (m.p.g.) combined city/highway. (Check your car’s rating here.)
3) A 1984 model or newer.
4) Worth less than $4,500 – or in some cases, $3,500. (The program just bumps up the trade-in value of your car to one of those amounts; you don’t get extra).
5) Owned by you for at least a year (so you can’t go out and buy one at the junkyard and then turn around and trade it in).

The only way you will truly know if your car can be traded in is to actually contact the auto maker companies. I am sure there will be many advertisements on both the television and Internet. It is highly likely that these ads will lead to an 800 number in which you can call a representative.

My perspective on this is that if you have a “clunker” and it needs a replacement engine and a few other repairs, yet it is in good overall condition. Is it a better choice to get your ‘big‘ cash rebate, yet still go into big debt buying a new car. Realistically speaking, you will owe a very significant amount of money to the bank for the difference in price on a new car, even with a cash rebate, that is not cash, over a used engine.

There are many positives about the program, which is designed to get rid of less efficient cars for hi efficiency new cars. It also stimulates the car companies. The cash rebate deal is great if you really need a new car, and obviously it will be good for the environment. But economically challenged people, some of which may not even qualify for a loan to pay for the new car would save money by purchasing a good used engine and handling any related repairs over the cost of new car.

Before you go into big debt, have your car examined by a professional mechanic, you may save more money than a cash for clunker rebate by fixing the car you have. If you need a replacement engine, call the experts at GotEngines.com for an engine that fits your best interests. Now you are saving money. More free information is available on our GotEngines.com blog. Enjoy.