Car Allowance Rebate System, better known as cash for clunkers started July 1, 2009. Although it started on the first, the government didn’t start processing claims until July 24th. The program is set up to have people with less fuel efficient cars trade in for one with 7 or more mpg . When you trade in, the benefit to the customer is up to $4500 in a rebate off the car. The dealers also include special pricing offers for the customers, allowing them to get even more off of the car. Thus, the idea is to help the environment, and stimulate the economy. The car can be as new as a 1999 vehicle.The debate however, is that when the dealers get the old car, they destroy the drivetrain. Some people are angry that the government is destroying a car that can be used and that runs. Another debateable topic about the system, is that the government is already in financial debt, which they are creating a never endless hole of debt. This all reverts back to the stimulus plan that congress approve by President Obama.
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