September 21, 2009, 5:00 am

Cash For Clunkers Made in Canada

by: The Financial Blogger    Category: Personal Finance
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new-camaro-gmFor some strange reason, we follow the USA in most of their economic programs and we always wait at least 3 months. Now again, GM Canada is now joining Ford in the Canadian version of Cash for Clunkers.

Cash For clunkers is a program designed to stimulate the car industry after having seen GM and Chrysler saved at the very last minute by the government in the States. The program actually doped car sales and the biggest winner was Ford. Cash for clunkers was such a success that the US government spent the allotted money in a heartbeat. And so, the program ended early on August 24th, 2009.

So now it is our turn to trade our old gas guzzler for a brand new Hummer! I mean a small car ;-).

Another thing I noticed, rebates are always smaller in Canada when compared to our southern neighbours ;-). Here is what is being offered right now:

Cash for clunkers from GM and Ford:

Depending on the car you wish to buy, you have the possibility of getting up to $3,000 off if you agree to take away your old gas guzzler off the road. This sounds like a great deal if you were planning to change cars anyways.

The smaller the car you buy (i.e. more economical on gas), the bigger your rebate is. At least, it has a green bent to it 😉

hyundai-genesis-coupeCash for clunkers from Chrysler and Hyundai:

Following their competitors, Chrysler and Hyundai are also offering rebates on a new car. However, they are limited from $1,000 to $1,500, depending on the model.

More than cash for clunkers!

Some dealerships go even further with their programs; they offer other small rewards such as:

– a bus pass

– bicycles

– or another $300 cash in your pocket.

So far, Cash for clunkers “Made in Canada” has contributed to pull 15,070 old cars off the road. Overall, I think it is great news for 2 reasons:


#1 It helps people looking for a new car save money.

While I don’t pity car manufacturers (they knew they were in left field way back in the 70’s and never did anything to compete against smaller Japanese cars), I am glad that we have the opportunity to save money on a new car.

A vehicle is one of the biggest expenses you will make (besides purchasing a property). Therefore, if you can save a few thousand bucks, bring it on!

#2 It has an ecological twist to it

I am no fool and I am well aware that governments are more concerned about saving the car industry and doping the economy than saving the planet (sigh..). However, if they realize they can do both at the same time, we may be looking at a win-win situation.

I am a bit disappointed to see that the rebate doesn’t necessarily apply only to hybrid cars. This would have been a great idea to push the hybrid sales and get rid of clunkers at the same time!

Unfortunately, the “economic need” was not selling hybrid cars. It was on selling cars period (more specifically, inventory).

clunkerIf you want to get the specifics about Cash for Clunkers Canada, I suggest you call a dealership near you. As we live in a wonderful country, each province probably has it own set of rules 😉 For example, BC was actually giving money back for clunkers a while back ago while nothing was offered in Quebec, distinct as it usually is…. I guess it is hard to communicate across thousands of kilometres 😉 Don’t provincial governments have internet?

image source: ScrapeTV, Cars.com, LivingCarFree

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