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BBB: Cash for Appliances is Coming Soon - Start Planning Now!

10/30/2009

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Media contact:  Janet C. Hart, APR, CFEE (704) 927-8617 office

CHARLOTTE, N.C. -- Following the wildly successful Cash for Clunkers program, the federal government recently announced the creation of a similar rebate program for consumers who purchase new, energy-efficient appliances, nicknamed ‘Cash for Appliances’.

Details are still being finalized, but the Better Business Bureau wants you to have advance notice because this program’s cash is expected to be gobbled up in a short period of time.

Plus, the Cash for Appliances program is expected to kick off during a time when consumers are usually strapped for cash – late December or early January.  So, the BBB advises you to budget your Christmas cash carefully. If you need a new refrigerator or a new washer and dryer, start planning now so you can take advantage of great savings on new appliances, plus holiday gifts for your friends and family.

The federal government has set aside $300 million from the stimulus package to fund the new cash for appliances program which will be implemented by each state. States will likely receive funding by the end of November and the Cash for Appliances program will likely begin in December or January.  Although each state can implement their program as they choose, the likely scenario is that consumers will receive a pre-tax savings on the purchase of new appliances up to a maximum amount per household.

Unlike the Cash for Clunkers program which required buyers to trade in their old car, you will not have to trade-in your old appliances when you buy new ones under the Cash for Appliances program.

The Cash for Appliances program has two primary goals. The first goal is to stimulate the economy in an industry that has seen a 15 percent drop in sales, according to the Association of Home Appliance Manufacturers.  The second goal is to increase energy efficiency in households by replacing old appliances with “greener” ones. According to www.energystar.gov, the typical household spends more than $2,200 a year on energy bills but could save over one-third or about $700 per year by making the switch to ENERGY STAR products.

“Replacing older appliances with more energy efficient models will help the environment and boost the economy,” said BBB President Tom Bartholomy. “This program will also help homeowners save money on their monthly electric bill.”

Each state will decide which ENERGY STAR qualified appliances are eligible for a rebate. The Department of Energy is encouraging states to focus on awarding rebates for heating and cooling equipment, appliances and water heaters.

More information on Cash for Appliances is available from the federal government is available at http://www.energy.gov/recovery/

For more information, please visit www.bbb.org or call the BBB at (704) 927-8611 or call 1-877-317-7236 toll-free in NC and SC.

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