Drivers set to swap old cars for new with $4,500 incentive

Published 11:19 pm Thursday, July 23, 2009

Julie Northcraft-Sexton of Everett is looking to end a relationship today that’s lasted 15 years and covered 219,000 miles.

She intends to leave her beloved 1994 Grand Jeep Cherokee at an Everett dealership and drive off with a new Honda Fit, a breakup encouraged by a $4,500 promise from the federal government.

That’s how much she’s getting for the purchase of the new car through the Cash for Clunkers program set to launch nationwide today.

“I wouldn’t have bought one without it. It’s like I’ve been saving for a year,” said Northcraft-Sexton, who noted her Jeep is worth less than $1,000.

It isn’t only about the money.

The third-grade teacher and mother of two teenagers also is on board with the program’s grander goal of using less oil and creating less air pollution by replacing gas guzzlers like hers with fuel-efficient cars, trucks and sport utility vehicles.

“It’s a great idea. What an excellent way to begin to curtail our dependence on foreign oil,” she said. “I’m a teacher, so I am telling my kids I am taking part in history.”

Northcraft-Sexton is one of about a dozen people who’ve already placed orders and made deposits on cars at Klein Honda in Everett in anticipation of the program’s launch.

“It’s stimulating the market. There have been more people coming in. I would say about half of our customer traffic are clunker-eligible buyers,” said Tom Hunt, general manager of the dealership.

“People are excited. They’re glad the federal government is giving them $4,500 for their cars. They’re making hay while they have the chance,” he said.

Congress put $1 billion into the Car Allowance Rebate System. It is set to end Nov. 1.

To be eligible, vehicles to be traded in must get fewer than 18 miles per gallon and be less than 25 years old. Also they must be able to be driven and must have been registered and insured to the same person for one year before the date of the trade-in.

Fuel economy determines the amount of the voucher.

You qualify for a $3,500 voucher if the new passenger car gets at least 22 mpg. Pick a vehicle that gets at least 10 miles per gallon more than the trade-in — as is the case with Northcraft-Sexton — and the voucher’s value rises to $4,500.

Rules for small trucks and sport utility vehicles are slightly different. The new truck or SUV must get a minimum of 18 mpg and be rated at least 2 mpg higher than the trade-in to qualify for $3,500. Those that are at least 5 mpg better than the clunker will earn the owner a $4,500 voucher.

Most car dealerships are expected to be involved, and the federal government intends to list names of all the participants on a Web site.

The dealer must scrap the trade-in. While some parts can be sold off, the engine block and drive train must be disposed of under specific federal rules.

Northcraft-Sexton said her children were saddened by the prospect of their Jeep getting crushed. Knowing some of its parts and pieces could get recycled eased the pain of separation.

“We’ve been a lot of places in it,” she said. “It’s been a great car.”

Reporter Jerry Cornfield: 360-352-8623, jcornfield@heraldnet.com.