Starting July 1, 2009 new car dealers will start offering $4,500 or $3,500, depending on the new vehicle purchased, for older gas-guzzlers thanks to the new federal Car Allowance Rebate System (CARS) enacted by congress.
The CARS program only applies to a new vehicle purchase, used vehicles are not eligible. The program will be administered through the National Highway Traffic Safety Administration (NHTSA).
Cash for Clunkers Eligible Trade-Ins
Not every older vehicle is eligible under the program. The trade-in vehicle has to be manufactured less that 25 years ago and have a combined city and highway of 18 miles per gallon or less when the vehicle was new.
The older vehicle must be registered and insured to the same owner for a year. The older vehicle must also be in drivable condition. Certain trucks and vans have different requirements. To see if an older vehicle is eligible visit http://www.letfordrecycleyourride.com/
Cash for Clunkers Eligible New Cars
The CARS program only applies to new cars, used cars are ineligible. The manufacturers suggest retail price can’t exceed $45,000. Since the main purpose of the CARS program is to help conserve fuel, new passenger cars must have a combined highway/city of 22 miles per gallon or better. Trucks and vans have a different mile per gallon requirement. A new car purchase as well as a new car lease qualifies.
What Clunkers Qualify for Cash for Clunkers
- Find out if the older vehicle qualifies for the program. Visit the above link to determine if the older vehicle qualifies.
- Take the old vehicle title, registration and insurance documents to a new car dealership.
- Purchase or lease a new eligible vehicle. The new car dealer will know what vehicles qualify and the amount of the rebate.
Since the main reason that congress inacted CARS was to get rid of gas guzzlers, the trade-in vehicle will be destroyed and sold for scrap. Even though the program suggests a rebate, the dealership will actually receive the credit from NHTSA about 10 days after the car is purchased. Dealers need to be registered for the program, so it’s advisable to make sure a dealer is registered. The federal government allocated one billion dollars for the program. The program will end by November 1, 2009 or sooner if the allocation runs out.
The program has not been completely finalized at the time of this article and certain aspects of the program may change. To keep updated and to find out more information on the Car Allowance Rebate System visit www.cars.gov.
