The federal government's incentive program to get older cars off the road and stimulate new cars sales is set to start Thursday, but not everyone thinks the car allowance rebate system is headed down the right road for consumers. The so-called "Cash For Clunkers" incentive program is revving-up by providing consumers some extra cash to buy or lease a new vehicle. Here's how it works: Your trade-in has to be no more than 25-years-old and get less than 18 miles a gallon to qualify. You'll get a $3,500 dollar voucher if the new car you buy gets 4-to-9 miles per gallon more than what you trade in, $4,500 if the difference is 10 miles per gallon or better. "People are really excited about it because it seems like found money to the consumer," says GM dealer Chip Snyder. It could be an even bigger bonus for the struggling auto industry. "In the environment we're in right now, a program like this is heaven sent," says AutoNation's Benny Dominguez. Chrysler Motors says it will match the government incentive, adding an additional $4,500 off most of its 2009 Chrysler, Dodge and Jeep models. Many dealers believe the program could mean as many as 20 additional sales a month. "In almost every case this was somebody who was not in the market, it's somebody that the program is bringing to the market so because of that this program is selling cars," says Steve Hinchliff of Omaha, Nebraska's H&H Chevrolet. Still not everyone is sold on the plan. Critics say it's too costly and has taken a huge detour from its original intent. "What began as a reasonable idea to get clunkers off the road, and try to move some more efficient vehicles in their stead, has been hijacked by the auto industry and their friends in Congress," complains Dan Becker of the Safe Climate Campaign. The federal program will run through November first or until one billion dollars in rebate credits are reported, whichever comes first. If you want more information on the C.A.R.S. program you can go to the federal government's website www.cars.gov.
