Not long ago, the government came up with a way to encourage consumers to buy a new car. The Cash for Clunkers program got mixed reviews but it hasn’t stopped the onslaught of similar ideas. Coming to a state near you, the Cash for Clunkers Appliance program will be working to push Americans to spend some cash on new appliances. While your old appliances may work just fine, the general feeling is that consumers who buy updated models will end up saving money over time. Additionally, newer model appliances are gentler to the environment and conserve energy. Currently, the government has set aside $300 million in funds to allow stimulus rebates toward more energy-efficient appliances.

One hang up with the new program is that the new appliances will often by very expensive. While it is true that consumers can save money over time, there are still high upfront costs associated with paying for a new washing machine or refrigerator. As many consumers are working with strict budgets, the new purchases may not be plausible. Experts say that appliances less than five years old may not be worth the cost of replacement but anyone using appliances 15 years or older will likely reap significant benefits, as will the environment.

The Cash for Clunkers car program was a federally-run program so each state followed the exact same rules. The appliance program would be handled at a state level and each one would decide on the qualifications, rebate amounts, and how overall the program is structured. There are some states including Connecticut and Rhode Island that have already started the program. Many states are set to follow in April 2010.

Those in the know caution consumers to read through the state program details carefully because some of the rules can be written in fine print. While many state residents can save some real cash on new purchases, it is always safe to know exactly how the program works so it can be used beneficially. Different states have also been awarded different amounts from the $300 million fund.

Getting rid of the appliance is also a state-oriented activity. In some places, the choice is left up to the consumer. Others will add additional benefits if you choose to recycle. These states recognize that unless the appliance is recycled, energy use may continue to increase, effectively squashing the reason for the program in the first place. For example, an old appliance that is donated will still be in use and ultimately wasting the energy savings intended.

The Department of Energy website  offers information about the state programs. Company representatives warn that rebate money will go fast so consumer interested in participating need to act fast before funds are gone.