Cash for Clunkers Program: 10 Things You’ll Need to Know
The Cash for Clunkers legislation – now known as the Car Allowance Rebate System (C.A.R.S.) – has become a reality and I’m sure we all have a few questions about the program. Below are things you’ll want to know about the program.
1. What Qualifies as a Clunker?
A “clunker” is defined as a vehicle which is currently drive-able and must be less than 25 years old on the trade-in date. It must also have a fuel economy rating of 18 mpg or less.
2. How Does The Program Work?
Trade your clunker in for cash, which is used towards the purchase of a brand new and much more fuel efficient vehicle. The better the fuel efficiency of the new car (which must be at least 22 mpg for a new car, 18 mpg for new SUV’s and smaller trucks, 15 mpg for larger trucks), the more cash you’ll get towards the purchase.
3. Can I Trade My Clunker in for a Newer, Used Vehicle?
No. Used vehicles, even those that are certified or which may even be more fuel efficient, do not qualify for the program.
4. Can I Trade My Clunker in on a Lease Vehicle?
Yes.
5. How Long Does the Cash for Clunkers Program Last?
The program goes into effect on July 1, 2009 and will run through November 1, 2009, after which it will be determined if the program should continue and/or if changes should be made.
6. How Long Must I Have Owned My Clunker to Qualify?
The clunker must have been registered and insured by you for the previous 12 months.
7. What Happens to My Clunker After I Trade It In?
Your clunker will be destroyed; therefore, the value you negotiate with the dealer for your trade probably won’t exceed its scrap value. According to the new law, the dealer is required to disclose to you the estimate of the scrap value of your trade.
8. Should Everyone Take Advantage of the Program?
No. It depends on your unique needs. Edmunds.com has a great PDF list of cars that are worth less than the value of the voucher (click here to view). If you’ve been in the market to trade in your clunker and buy a brand new car, now would be the perfect time; obviously you’ll save some cash if you can take advantage of the program. On the other hand, if a new car isn’t something you can readily afford, or your preference is for a used vehicle and you find you can save more money by purchasing a used vehicle, than the used car is your best bet.
9. Do I Need a Voucher?
Beware of scams. You don’t need a voucher to take advantage of the program. Dealers will apply a credit at the time of purchase.
10. What if I Have More Questions?
If you need more information, check out these helpful websites:
• Cars.gov - The official website for the CARS Car Allowance Rebate System
• Jalopnik – Chart
• Cash for Clunkers Facts
• Fueleconomy.gov
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[...] presents some Frequently Asked Questions (FAQ’s) regarding the new law. Read on to learn more about the program. « Mosley Steps Down to [...]
Searching for plane ticket home. August 5 sounds like a good day. One prob. cash in hand and need to purchase via credit card. hmmm.
[...] The calculator helps you evaluate your vehicle with model years between 1989 and 2009 based on make, model, condition, and mileage. The age of the vehicle, its fuel economy and the fuel efficiency rating of the new car are important factors in determining whether or not the vehicle qualifies for a Cash for Clunkers credit toward the purchase of a new vehicle. The calculator also displays the Kelley Blue Book trade-In value, a great feature which really aides in helping to determine whether your vehicle is worth more or less than the possible credit you could receive from the CARS program. [...]
[...] the passage of the Cash for Clunkers bill (also known as C.A.R.S.), some say the auto industry is once again buzzing with a positive outlook [...]
[...] The CARS program offers a government credit of either $3,500 or $4,500 for trading in an inefficient vehicle that is not more than 25 years old for the purchase of a new vehicle. The amount of the credit is determined based on the fuel-economy improvement between the turn-in vehicle and the new vehicle purchased. For more on the government CARS program, click here. [...]