Car Insurance, Loan, Purchase, Lease Decisions

State May Pay You for Replacing Your Vehicle

The state of Texas just recently started a new program called Drive a Clean Machine. The program is designed to remove older, more polluting vehicles from Texas roadways in counties with high ground-level ozone. Texas is using a carrot rather than a stick approach by giving vouchers worth $3,000 if you meet certain requirements. First, you have to live in participating Texas counties and your 2007 net income must be below certain limits. Second, your vehicle must meet certain conditions such as a failed emissions test or be at least 10 years old. Third, there are requirements for the car vehicle that you purchase. Please refer to the Texas website for the full details and for instructions on how to apply.

There are a lot of hoops to jump through, but the $3,000 ($3,500 for buying a hybrid) may make it worthwhile.

California also has a similar program, but it only pays $1,000.If you find other states with similar programs, please post links in the comments.