Cash for Clunkers Program 2009: Rules can be an obstacle

The recently announced Cash for Clunkers Program 2009 has already started to give a shot in the arm to the ailing U.S. auto market, but things are not as clear as they seem. The new incentive by Uncle Sam to rid North America of its gas-guzzling vehicles has some complicated rules and it is this, which can become an obstacle.

The first instants of this were mentioned in a recent article, where the Environmental Protection Agency changed what cars were eligible for $3,500 or $4,500 government vouchers. The EPA reviews the mileage rating for at least 30,000 cars, so that they would be able to comply with the Cash for Clunkers Program.

The program looks at the average miles per gallon that a vehicle does, this has to be accurate up to four decimal places. There is now a 136-page-long rulebook for the Car Allowance Rebate System (CARS); this is the official name for the Cash for Clunkers Program 2009. In the recent review, the EPA had to reclassify 86 models as eligible for the program.

Read the full article by visiting The Wall Street Journal

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