Cash for Clunkers: The Facts
Overview - Research the car you're trading in for maximum value
- Explore all new car and used car options
- Make sure you know what you want and what you're getting in your new car
The federal Cash for Clunkers program brought about a windfall of new and even used car sales over its short existence. Dealerships were flooded with people wanting more fuel-efficient cars and to get more money for their gas-guzzling clunkers. But beyond that, it also helped us be smarter car shoppers. Now that the program has ended, it’s a good time to review some of the car-buying lessons that Cash for Clunkers helped reinforce.
5. Show what you’re trading-in
In order to satisfy the proof of ownership requirement for Cash for Clunkers, the National Highway Traffic Safety Administration (NHTSA) told buyers to give the dealer a CARFAX Vehicle History Report for their current car. This is an important step to follow anytime you consider trading in your car. Since many dealers use CARFAX Reports in their vehicle evaluations, they’ll know you’ve come prepared. Knowing what the dealer knows about your car up front – low mileage, well-maintained, CARFAX 1-Owner, etc. – can put you in better bargaining position and ultimately tip the trade-in value in your favor.
Also, don’t forget to gather all documents, including the title and service records, to give to the dealer along with your CARFAX Report.
4. Maximize the value of your current car
Under the program, buyers were eligible to receive up to $4500 for their trade. However, some trade-ins may have been worth more than the government rebate the buyer received. Remember, the value of your trade is negotiable and knowing the value of your car is key to maximizing its trade-in value. Do your research to determine fair market value if you’re considering trading-in your current car at the dealership.
To start, visit a vehicle values site like Vehix.com’s Used Vehicle Values and plug in the particulars of your vehicle (make/model, mileage, accessories, etc.) to see what it’s worth to a dealer on trade. You can also find what buyers actually paid for new vehicles in your area by browsing the TrueCar Price Report on vehix.com.
3. Determine which car is the best fit
Cash for Clunkers made us look hard at a vehicle’s fuel efficiency, but there are many other factors to consider when deciding which car is right for you. Is a new car the best fit, or maybe a similar used or certified pre-owned model would be better? Which car fits most comfortably into my budget? Which one do I feel most comfortable in? Which cars have the best safety ratings, manufacturer’s warranty, and average resale value? The lesson here is to carefully scrutinize all aspects of the car and choose the vehicle that will best fit your every day needs, not just the one with the highest fuel economy.
Visit third-party auto sites like Vehix or the manufacturer's website to locate a dealer and vehicle pricing information.