President Obama signed into law a program being called the Car Allowance Rebate System (CARS) or more commonly known as "Cash for Clunkers." This is a federal program that helps you purchase a new, more fuel efficient vehicle when you trade in a less fuel efficient vehicle. The Cash for Clunkers program seeks to both reduce the number of fuel inefficient vehicles on the road, while increasing the purchase of more fuel-efficient and environmentally-friendly vehicles.
While the CARS Act makes transactions on and after July 1 potentially eligible for credits under the CARS program, interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued. Issuance will occur around July 24.
Some important things to know about the Cash for Clunkers program:
Your vehicle must be less than 25 years old on the trade-in date
Only purchase or lease of new vehicles qualify
Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
You don't need a voucher, dealers will apply a credit at purchase
Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
The vehicle that you are trading in is required to be destroyed. Therefore, the value you negotiate with the dealer for your trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to you and estimate of the scrap value of your trade-in vehicle.
The dealers whose logos you will see on this page are ready to answer your questions and help you to take advantage of the program.
Check this site frequently for the most recent updates from the government.
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