To bring everyone up to speed: the Associated Press released a report last night which collectively had prospective car buyers, dealerships, manufacturers and congressmen in panic-mode in regards to the exhaustion of funds, some $1 billion, appropriated for the popular Cash For Clunkers program that went live just one short week ago.

The Facts
Nobody knows for sure if all the money is gone.  Dealers have all reported brisk sales, and as of this morning, the National Highway Traffic Highway Association have processed roughly $250 million worth of applications.

The House has moved with unprecedented quickness, approving an additional $2 billion for the popular program by a landslide 316-109 vote this morning.  The bill is now in the Senate, and should be voted on sometime next week.

The Math
With approximately 23,000 dealerships registered for the Cash for Clunkers program, we can see what the panic was all about: if each dealership were to take a few clunkers per day, you’d approach the $1-billion doorstep rather quickly, since the average voucher is valued at $4000:

23,000 (dealers) * 10 (deals already per dealer) * $4000 (avg. voucher) = $920,000,000

The Future
The onus now lies with the Senate; the vote could go either way and nobody can really predict what will happen, though we can offer our prediction: the bill will get passed, albeit with modifications to the rules focusing primarily on fuel economy improvements (the 2-mpg “improvement: was laughable).  It’s possible that qualifying vehicles would have to obtain closer to a 4-mpg improvement over the clunker traded in.

Bottom Line
…is this: When opportunity knocks, it’s in your best interest to answer.  If you were procrastinating about trading in your clunker, act fast.  There’s still a 50-50 chance that the additional funds will or won’t get approved.  The timing couldn’t be better: you have the weekend in front of you, and CarsDirect puts all the new car research at your fingertips to help you make a well-informed buying decision.

Links
Click here to see if your qualifies for trade-in. Your average fuel economy must be 18 mpg or less.

Click here to see what you need to bring to the dealer.

Click here to start the search for your brand-new car.

Chrysler is offering an additional $3500 to $4500 of Customer Cash towards select Chrysler, Dodge or Jeep vehicles. From today to August 31st, they will match the government’s $3500 to $4500 voucher towards vehicles which qualify for or the Cash Allowance Rebate Program (CARS), widely known as the Cash for Clunkers program. Chrysler’s Customer Cash brings the total rebate to $7000 to $9000, which is a substantial amount of cash.

The gears in the offices of CarsDirect’s World Headquarters began to turn on word of this unprescedented offer. Assuming your trade-in vehicle qualifies for the government’s program, here are a few potential deals that might interest you:

2009 Chrysler PT Cruiser

2009 Dodge Caliber

2009 Jeep Patriot

And if you already own a Dodge and would like to know everything (we mean everything) as it pertains to Dodge cars and trucks, visit the authoritative source on the web at DodgeForum.com .

2010 Ford Focus

Cash for Clunkers, now officially known as the Car Allowance Rebate System (CARS), is a federal program designed to stimulate U.S. auto sales and improve the environment by providing an economic incentive for consumers to replace old, gas-guzzling vehicles with new, more fuel-efficient models, such as the 2009 Ford Focus and 2009 Ford Escape.

The main question we hear being asked is if certain cars are going to be eligible for trade in or not.  Well, Ford is taking the guesswork out of the process.  You can now find out if your car qualifies for the $3500 to $4500 vouchers with their new Qualification Calculator.

The way the program works is simple.  Say for example you have a 1990 Cadillac Fleetwood that as-new was rated at 15 mpg in the city and 23 mpg on the highway (according to adjusted EPA fuel economy estimates).  Your combined fuel economy works out to 17 mpg, one MPG below the 18-mpg limit specified by the bill.  Now, in order for you to receive the maximum $4500 voucher to use towards a brand-new car, you would have to purchase one that gets at least 10 mpg more than your old car.  In the 2009 Ford Focus’s case, it’s easy–it gets 24 mpg in the city and a whopping 35 mpg on the highway.  Combined fuel economy is 29 mpg, easily surpassing the government’s mandate.

So, not only do you get to put $4500 towards a brand-new 2009 Ford Focus, but you also get the added benefit of getting 12 more mpg than your old vehicle.  The national average for gas today is $3.03.  A 40-mile trip in your old 17-mpg vehicle would cost you $7.13.  The same trip in a Focus would only cost $4.18.  How can you argue with numbers like those?

Here’s another example for light truck, van and SUV owners: Let’s say you have a 1994 Chevy Astro. New, the Astro was rated at 15 mpg in the city and 19 mpg on the highway—running premium fuel, no less (ouch!). Based on adjusted EPA fuel economy estimates, that averages out to a combined 16 mpg. If you choose a 2009 Ford Escape, which achieves 20 mpg in the city, 28 mpg on the highway and averages a combined 24 mpg, you would be eligible to receive the full $4500 voucher as the new vehicle gets more than 5 mpg better fuel economy than the old one. On top of getting a huge government discount on a brand-new 2009 Ford Escape, you get cargo space comparable to the vehicle you’re replacing. It truly is a win-win deal. That is, unless you happen to be an inefficient and obsolete Chevy Astro.

Cars for Clunkers Frequently Asked Questions
Updated July 13, 2009

Q: Does my vehicle qualify?
If your car, truck or SUV gets a combined 18mpg or less, you will qualify for a voucher.  Combined mpg equals the average of your vehicle’s city and highway MPG ratings.  For example, a 1997 Ford Explorer gets 14/20 mpg for city/hwy, which averages out to 17 mpg.  This vehicle would qualify for a voucher.  Your vehicle also MUST be a 1985 model or newer.  It must also have passed the latest smog test. 

Q: Will the mpg be based on what my car is currently getting or what it got when it was brand new?
It’s impossible to get the individual fuel economy ratings from every single vehicle, so the current EPA ratings will be used to determine if your car, truck or SUV is eligible.

Q: Is there a website I can go to that will show me an official EPA rating for my vehicle?
http://www.fueleconomy.gov/feg/findacar.htm

Q: How long does the Cash for Clunkers Program last?
The program will start on July 23, 2009 and end on November 1, 2009.

Q: What happens to my car when I trade it in?
The dealership where you pick up your brand-new car will send your old vehicle out to get dismantled and recycled, further helping the environment.

Q: Can I buy my car back from the government?
No, because the idea is to remove the vehicle from public roads to make driving safer and cleaner.

Q: Can I trade my voucher in for cash?
No, the vouchers are only valid for new vehicle purchases.

Q: What brand of car, truck or SUV can I buy using the voucher?
Any vehicle that gets at least 2mpg more than your older vehicle in addition to a minimum combined fuel economy of 22mpg.  The vehicle must also cost less than $45,000.

Q: Can the voucher be combined with other incentives?
Yes, since the voucher is provided by the federal government, many manufacturer rebates and financing offers still apply.

Q: How much will I get if my vehicle qualifies?
See below:

* 6,000 – 8,500 pounds

** 8,500 – 10,000 pounds

Cash for Clunkers is a federal program designed to stimulate U.S. auto sales and improve the environment by providing an economic incentive for consumers to replace old, gas-guzzling vehicles with new, more fuel-efficient models, such as the 2009 smart fortwo.

So, not only do you get to put $4500 towards a brand-new 2009 smart fortwo, but you also get the added benefit of getting 20 more mpg than your old vehicle.   The national average for gas today is $3.03.  A 40-mile trip on your old 17-mpg vehicle would cost you $7.13.  The same trip in a 2009 smart fortwo would only cost $3.28.  It doesn’t get any better than that.