Cash for Clunkers program has no impact on an automaker’s cash-back or low-interest incentives. The government’s $3,500 or $4,500 credit can be teamed with, say, a $2,000 cash-back rebate on a 2009 Toyota Camry.
The Cash for Clunkers program offers a $3,500 or $4,500 credit toward a new vehicle when you turn in your older, fuel-inefficient vehicle. Pickups, SUVs and minivans also qualify for the program.
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Cash for clunkers will hurt car donations to charity because the amount of the voucher is so much greater than the tax deduction. A better solution to boosting car sales would be to just go back to allowing people to take the blue book value of their car as the tax deduction for donating it to charity. Most cars that are donated are recycled. Those that aren't have to pass inspection before they car be sold or given to the public. The result is less polluting vehicles on the road.