U.S. Senate yesterday passed the H.R.2640 bill, also known as Cash For Clunkers program, which would give the U.S car market a stabilizing boost. Prospective car buyers may receive a total $4500 dollar government incentives for the purchase of their new cars.

Here’s the Cash For Clunkers Details in a Nutshell from Huliq:
This is actually how the Cash for Clunkers program will work in details in simple words. In the bill there is something for both trade-in and newly-bought cars.

The requirements for trade-in vehicle.

It has to be 18 mpg or less, built in 1984 or after and be in drivable condition. The trade-in vehicle must be registered in purchaser’s name and owned for 1 year.

Cash for Clunkers program details for cars bought with the trade ins have the following requirements.

The new car has to have at least 22 mpg and cost under $45,000. There will be $3,500 subsidy for car with 4 mpg improvement and $4,500 for 5 pmg improvement.

When it comes to small light-duty trucks they have to be at least 18 mpg. They will get $3,500 subsidy for 2mpg improvement and $4,500 for 5pmg improvement. However, the large light-duty trucks will need at least 15 mpg. They will get $3,500 subsidy for 1 mpg improvement and $4,500 for 2 mpg improvement.