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Chrysler Group is offering consumers $4,500 on most of its 2009 models, doubling the cash-for-guzzlers incentive offered by the federal government.

"Double Ca$h for Your Old Car," offers up to $4,500 cash or 0 percent financing for 72 months on qualifying new vehicles, even if the consumer's trade-in doesn't qualify for the federal incentive.

The program starts tomorrow and runs through August, Chrysler announced this morning.

"We didn't want consumers without qualifying vehicles to feel left out, so we are offering up to $4,500 to everyone," said Steven Beahm, Chrysler's vice president for sales operations.

Chrysler emerged from six weeks of Chapter 11 reorganization on June 10, and now is controlled by Italian automaker Fiat S.p.A. Through the first half of the year, Chrysler's U.S. sales plummeted 45.7 percent to 471,197 vehicles.

The cash-for-guzzlers legislation, designed to help lift U.S. light-vehicle sales from 27-year lows, provides vouchers of $3,500 to $4,500 to consumers who trade in their rides for new vehicles that are more fuel-efficient. Congress allocated $1 billion to fund the program, which expires Nov. 1.

New cars eligible for the federal incentive must have combined highway and city fuel economy of at least 22 mpg, and small light trucks must have combined fuel economy of at least 18 mpg. New vehicles must have a suggested retail price of $45,000 or less.

Trade-ins eligible for "cash for guzzlers" must be drivable, less than 25 years old and have combined fuel economy of 18 mpg or less. They must have been continuously insured and registered to their owners for at least one year.

Vehicles not included in Chrysler's offer are the Jeep Wrangler, Dodge Challenger and Sprinter and all SRT products.

Chrysler had told dealers that its current incentives would last through July. But some dealers had said they believed customers were holding out in hopes of getting more money for their old vehicles under the cash for guzzlers program.

Said Kathy Graham, Chrysler spokeswoman: "We were hearing from a lot of people who thought they could buy with cash-for-clunkers. But then realized for one reason or another their car didn't qualify. We looked at putting an incentive package together that appealed to everybody."

The National Highway Traffic Safety Administration is drawing up rules for the cash-for-guzzlers program and is scheduled to release them by the end of the week.

Recognizing the troubles that have befallen the U.S. automobile industry, our Congress has instituted two pieces of legislation to stimulate new car sales.

That, plus the fact that many dealerships are closing, translates into a potential bonanza for those consumers who are considering a new car purchase.

The first goody is a tax break for consumers who purchase a new car this year because these purchasers can deduct all state taxes and excise taxes paid. The deduction phases out for vehicles that cost more than $49,500, but the tax break does apply to light trucks, motor homes and motorcycles.

However, the deduction does not apply to used car purchases, and it phases out for single taxpayers who have Adjusted Gross Incomes between $125,000 and $135,000. For married couples filing jointly, the phase-out corridor is between $250,000 and $260,000.

Another plus with this program is that the deduction can be claimed on 2009 tax returns regardless of whether one itemizes or claims the standard deduction.

In addition to the new tax breaks, it's a particularly good time to shop for a new car - especially at General Motors dealerships that are closing.

The other piece of legislation pertaining to the automobile industry is the so-called "cash for clunkers" program. The problem with this enactment is that not many vehicles qualify for a government voucher, but if your car is older and not worth much, this program is for you.

Here is how the program works: If you have a car that was manufactured in 1984 or later, has been in use for at least one year, is drivable and the vehicle gets less than 18 mpg, combined for city and highway driving (each vehicle's official mpg rating can be obtained on www.fueleconomy.gov), you will get a voucher worth $3,500 - if the new vehicle's mileage is rated at least 22 mpg. If your new car gets 10 mpg more than your old vehicle, then the voucher is worth $4,500.

For light-duty SUVs, vans and pickups to qualify for a $3,500 voucher, the mileage on the new vehicle must be 18 mpg combined and 2 mpg better than the old one. If the new vehicle gets 5 mpg better mileage, you can claim the $4,500 voucher. For heavy-duty vehicles - those rated at 6,000 to 8,500 pounds for gross vehicle weight - the rules are even more lenient. The $3,500 voucher is available if the new vehicle gets at least 15 mpg combined and just 1 mpg better mileage than the old one. You need only 2 mpg better to qualify for the $4,500 voucher.

Work trucks with gross vehicle weight ratings of 8,500 to 10,000 pounds qualify for the $3,500 voucher so long as the old vehicle is a 2001 or earlier model.

The program is not as good as it sounds, unless your vehicle is a real clunker. The voucher replaces your trade-in value, and your old vehicle heads for the scrap heap.

You can check out www.kbb.com to see if your car's mileage and value make this program worthwhile for you.

+ 'Cash for Clunkers' Calculator by kbb.com

Tax tip: If you are a principal in a C Corporation (one that pays taxes as a separate entity), your corporation can purchase long-term care insurance for you and your spouse, deduct the cost as a business expense, and neither you nor your spouse will incur any income tax liability. Moreover, the dollars from the policies used for pay for qualifying expenses are income tax-free to you or your spouse. And the best part is that you don't have to include any of your other employees.

Kelley Blue Book Provides Key Details for Federal Cash for Clunkers Program, Finding Best Next Car.

Kelley Blue Book, www.kbb.com, the leading provider of new-car and used-car information, today announces the launch of its Cash for Clunkers Calculator on its top-rated Web site, kbb.com. Using the Cash for Clunkers Calculator, consumers can gain important details to assist them in determining if their current vehicle might be eligible for up to $4,500 toward the purchase of a more fuel-efficient new car, research new-car options, and reach a dealer -- all in one place.

Kbb.com provides a simple, interactive Cash for Clunkers Calculator to help consumers determine whether they may be eligible for a credit under the Car Allowance Rebate System (CARS), the official government name of the Cash for Clunkers program.

The calculator helps consumers evaluate vehicles with model years between 1989 and 2009 based on make, model, condition, and mileage. The age of the vehicle, its fuel economy and the fuel efficiency rating of the new car are key factors to determine whether the vehicle qualifies for a 'Cash for Clunkers' credit toward the purchase of a new vehicle.

The calculator also displays the Kelley Blue Book(R) Trade-In Value, to help consumers determine whether their vehicle is worth more or less than the possible credit they could receive from the CARS program.

Under this groundbreaking, government-sponsored program, a consumer can receive instant credit toward the purchase of a new, more fuel-efficient vehicle upon trade-in of an old, gas-guzzling ride that has a combined city/highway fuel economy of 18 miles-per-gallon or less, is in drivable condition and has been insured and registered for the past year by the same owner.

"While the conditions of the new Cash for Clunkers program can be confusing, kbb.com provides a means of assisting consumers to determine eligibility and help get them into their next new car quickly and easily," said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book's kbb.com.

Ford will be the official sponsor of the Cash for Clunkers program on Kelley Blue Book's kbb.com. Ford has been on the forefront of this new federal program and is dedicated to providing consumers the information they need.

Ford also recently launched its 'Let Ford Recycle Your Ride' campaign to help take the confusion out of the Cash for Clunkers program. With an impressive line-up of fuel-efficient cars, trucks and utility vehicles, Ford can offer a variety of gas-sipping models to fit the needs of any consumer.

"Kelley Blue Book is pleased to have Ford as the official sponsor of the Cash for Clunkers Calculator on kbb.com," said Justin Yaros, executive vice president of product design and development for Kelley Blue Book's kbb.com. "Together, we have the ability to further educate the consumer on the new government program and assist in all stages of the shopping process."

The CARS programs runs through November 1, 2009, or until government funds are exhausted. For more information about the Cash for Clunkers program, visit www.kbb.com/cashforclunkers to view program details, articles and a detailed video.

Saturn of Raleigh (www.saturnofraleigh.com) and Saturn of Cary (www.saturnofcary.com) are participating in the Customer Assistance to Recycle and Save program, a new program from the federal government that will help consumers pay for new, more fuel efficient cars or trucks from a participating dealer when they trade in a less fuel efficient vehicle. More commonly called "Cash for Clunkers," the program will provide U.S. Government vouchers valued from $3,500 to $4,500 when consumers trade in eligible vehicles and purchase new ones before Nov. 1, 2009 that meet or exceed specified fuel economy improvement standards.

For more information about the "Cash for Clunkers" program, visit www.cars.gov.

"Cash for Clunkers is a great program that will help take old, inefficient vehicles off the road and replace them with new, more fuel-efficient cars," said Bill Shotwell, general manager and owner of Saturn of Raleigh and Saturn of Cary. "Consumers should keep in mind that the window of time to participate in this program is only through November 1 or until the funds run out. Our team is happy to help the local community understand the details of the program and whether their cars qualify as clunkers in this program."

About Saturn of Raleigh:

Saturn of Raleigh is a full-service car dealership that has been serving the Raleigh, N.C., area, including Wake Forest and Rocky Mount, since 1992. Located at 5501 Capital Blvd., Saturn of Raleigh offers a complete line of new and pre-owned cars and trucks, and the staff is committed to serving all automotive needs, from sales and finance to service and parts. For more information about Saturn of Raleigh, visit www.saturnofraleigh.com or call (877) 221-5402.

About Saturn of Cary:

Saturn of Cary is a full-service car dealership that has been serving the residents of Cary, Apex, Morrisville, Holly Springs and other surrounding communities since 1997. Located at 91 Mackenan Drive in Cary, Saturn of Cary offers a complete line of new and pre-owned inventory of cars and trucks. For more information about Saturn of Cary, visit www.saturnofcary.com or call (866) 569-5673.

Car makers in Europe felt something of a reprieve in June, as incentives from governments and dealers stemmed or reversed sales declines.

New-car registrations in France rose to 235,407 in June from 219,754 a year earlier, according to data published Wednesday by the French Automobile Manufacturers Association.

The association said the government's temporary cash incentives for car owners to scrap their old vehicles and buy new ones motivated car buying. But discounting by car makers and dealers also played a prominent role. Incentives accounted for 20% of French June new-car registrations, according to the association.

The rapid decline in Spanish car registrations during recent months also eased in June thanks to government aid, Spanish car manufacturers' association Anfac said Wednesday. Car registrations fell 16% from a year earlier in June after falling 39% in May and 46% in April, according to Anfac.

The government subsidies boosted individuals' car registrations 15% in June from a month earlier, Anfac said. It was the first month in more than two and a half years where registrations by individuals increased compared with the previous month.

Italian car sales bounced higher in June, rising 12.4% compared with June 2008, as government payments to people who trade in old cars for newer, less-polluting ones kicked in, data showed Wednesday. Overall, Italian new car registrations in June increased 12.4% to 209,315 vehicles. That compares with an 8.6% annual decline posted in May.

Along with the car-sales incentives, "the improvement of the economy, or at least expectations of improvement, could have played a factor" in June's rebound, according to Italian auto analysts Centro Studio Promotor.

General Motors Corp. looking to bolster sales as it prepares for a new start out of bankruptcy protection, will free financing on many vehicles for six days starting Wednesday.

The auto maker also plans to begin urging customers to capitalize on the recently passed "Cash for Clunkers" legislation that gives car buyers up to $4, 500 to trade in aged gas-guzzlers for new cars and trucks. The company's campaign will be called "Buy and Say Goodbye." Money for the clunkers program won't likely be available until late July, but GM wants to get customers thinking about a trade now, company spokesman John McDonald said.

GM's free-financing offer, a deal it has resuscitated several times amid a severe slump in U.S. auto sales, will apply to many 2009 and 2010 model year vehicles, including large pickup trucks and sport utility vehicles and the entire Pontiac line. GM is winding down Pontiac as parts of its Chapter 11 restructuring.

GM's sales are down 42% through May, sharper than the industry's 37% decline. Major auto makers will release Wednesday June sales results, which are expected to show some signs that the auto market has begun to stabilize.

Car makers have struggled to woo jittery, cash-strapped consumers despite offering generous deals.

GM's sale, though it runs six days, will be dubbed as a 72-hour holiday sale since dealers will, on average, be open only 72 of those hours because of the Holiday weekend, McDonald said. McDonald didn't disclose GM's incentive plans for later in July, but said "you can certainly anticipate we'll be offering reduced rate financing" at that time. It is unclear whether that will include 0% financing for 72-month loans on certain vehicles.

Ford Motor Co. also has begun to tout the clunkers program with a slogan, "Let Ford recycle your ride." Under the program, a vehicle qualifies for trade- in if it is a 1984 model or newer and gets no more than 18 miles per gallon. The replacement vehicle must have improved fuel economy.