Use Cash for Clunkers or not??

[SigMan1980]

Is it the height of hypocrasy if I use Cash for Clunkers?? I have a 2004 Expedition Eddie Bauer with 51K miles on it, which I have been 'upside down' on for awhile. The warrenty is about to expire and now I'm just about 'even' as far as what I owe compared to what its worth. If I do the program and put $4500 towards a new car, I could get something in the mid-upper 20's and keep the same payment (+/- $380/mth). Financially, it makes sense, but I do have some principles. Its only a 2004, lots of people would love to have a car that new, and its a luxury SUV to boot. I own a home, two cars, a motorcycle, and support a family of four, I don't NEED to do this. I'm torn. Obviously, it comes down to what I'm comfortable with, but I'm curious as to what some of my peers, like-minded folks, would do. Thanks!!

[fingers80002]

Does it even Qualify?

Do you know how the program works?

[SigMan1980]

Does it even Qualify?

Do you know how the program works?

As far as I can tell it qualifies based on the shitty (>18mpg combined) gas mileage. It looks like, as long as the car I applied it to had a 10mpg improvement I would qualify for the whole $4500.

[H.E. Pennypacker]

Have you looked up the Expedition's value? It may be worth more than $4500, and probably is, assuming it's in good shape.

If I was in the market for a new car, I'd consider it...but I'd hate to see a perfectly good car destroyed, even if I'm getting a couple grand extra for it.

[fingers80002]

As far as I can tell it qualifies based on the shitty (>18mpg combined) gas mileage. It looks like, as long as the car I applied it to had a 10mpg improvement I would qualify for the whole $4500.

It doesn't matter what it gets, It's what.gov says it gets.

Don't count on 4500, some will only get 3500, it also depends on what is being purchased...

If it does qualify, it will have the engine siezed, then right to the shredder.

[SigMan1980]

Oh no no, I wasn't clear about the situation. The car is worth around $9500 trade in, probably 13K retail. However, that pretty much exactly what I owe on it. So I trade it in towards a new car that gets good gas mileage and they give me 4500 to put down on it. No money out of pocket, payments stay the same.

Have you looked up the Expedition's value? It may be worth more than $4500, and probably is, assuming it's in good shape.

If I was in the market for a new car, I'd consider it...but I'd hate to see a perfectly good car destroyed, even if I'm getting a couple grand extra for it.

[unclejumbo]

Edmunds values your car at a minimum of $11000. Why would you let it go for $4500?

[unclejumbo]

No, they roll what you owe over to the new loan along with the price of the new car. You will be giving away money. If you car is worth more than $4500, there is no earthly reason to do what you are considering.

[fingers80002]

Oh no no, I wasn't clear about the situation. The car is worth around $9500 trade in, probably 13K retail. However, that pretty much exactly what I owe on it. So I trade it in towards a new car that gets good gas mileage and they give me 4500 to put down on it. No money out of pocket, payments stay the same.

No, that's not how it works.........

[bullet]

Edmunds values your car at a minimum of $11000. Why would you let it go for $4500?

for sure that wouldnt be very smart to take so much less if its worth 11gz.