Monday, July 27, 2009

Some info regarding CARS (Cash-for-Clunkers)

There has been a lot of news about the Car Allowance Rebate System, or CARS (formerly known as Cash-for-Clunkers), offered by the federal government to encourage consumers to trade-in their older, non-fuel efficient vehicles for incentives of $3,500 or $4,500 towards the purchase or lease of a new vehicle.

Here are a few points about the 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 (there are different requirements for large trucks and cargo vans)
  • 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 (credit amount is $3,500 or $4,500)
  • Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
  • The program requires the scrapping of your eligible trade-in vehicle (destroying the engine so that it can never be used again), and that the dealer discloses to you an estimate of the scrap value of your trade-in.
More information about this program can be found on the government’s official site at:

Here are additional links to some of the automakers' websites regarding Cash for Clunkers: