Joe Fitzpatrick has thought about replacing his 13-year-old Buick for months, but might hold off a little longer to take advantage of a new government program that will give him as much as $4,500 to trade in an aging gas-guzzler for a new, more fuel-efficient ride.
The cash incentive means the Towson resident, who is 62, will likely add some extra features to his new car like a navigation system, Bluetooth communication system or heated seats.
"More gingerbread on it," he says.
Congress created a "cash for clunkers" program last week as part of a military spending bill that President Barack Obama is expected to sign. Under the program, you could get $3,500 or $4,500 for giving up your old vehicle to the scrap heap and buying or leasing a new vehicle that's fuel efficient.
The program has dual goals of helping the environment and car manufacturers. Some critics argue that it doesn't do either job well because of its limitations. But if you fall within those limits, this may be just the incentive - coupled with a sales tax break on new cars this year - that may get you into the dealership.
"We think it's going to help us sell some cars," says Tom Cook, sales manager at Anderson Automotive in Baltimore.
The details are still being worked out. The government should post them online - including which types of vehicles are eligible and where to find participating dealers - in the coming weeks.
Here's what's known so far:
Vouchers worth either $3,500 or $4,500 will be available to offset the price or lease of a new vehicle between July 1 and Nov. 1. Leases must be for at least five years. Not just any old and new vehicles qualify for the cash program.
To get a $3,500 voucher, for example, you must buy a passenger automobile that has a combined fuel economy - calculated using the vehicle's highway and city miles per gallon - that's at least 4 miles per gallon higher than the car you're trading in. Also, your old auto can't get more than 18 miles per gallon; the new passenger car must have a combined fuel economy of at least 22 miles per gallon.
For a $4,500 voucher, the new passenger car must get at least 10 miles per gallon more than the trade-in.
Trucks fall into three classifications, and the rules are more complicated.
Trade-in vehicles must be less than 25 years old. New vehicles can't cost more than $45,000.
