Cash for Clunkers &
How it can work for you!

Cash for Clunkers, the official name of the program is C.A.R.S. - "Consumer Assistance to Recycle and Save Program", is a measure to encourage consumers who own and operate a car that gets under 18 miles a gallon to trade the car in for a more fuel efficient vehicle.

The bill states that consumers will be rewarded if the new car they purchase is rated at or above 22 miles per gallon. The bill has a budget of $1 billion and is scheduled to end by 11/01/09 or sooner if the initial investment expires.

There are two cash vouchers that can be issued when a consumer purchases a new, not used, car from a dealer. If the new car gets 4 miles per gallon more than their current car, a consumer would get a cash voucher for $3,500.

If the increase is 10 miles per gallon, they will get a $4,500 cash voucher. Cars that have a trade in value greater than $4,500 would not be used for this program since all cars traded will be sent to the scrapyard.

Below we have compiled a list of common questions and answers for the Cash for Clunkers program, but here are some quick tips:

  1. The bill is now law and the program starts on July 24th and is administered by NHSTA.
  2. The bill applies to purchasing ONLY new cars and trucks from a dealer that will take in your clunker as part of a new car transaction.
  3. Car or trucks can be traded in for a new car or a new truck. A Truck can be traded in for a new car.
  4. This plan is not retroactive. Purchases before the start date are not eligible.
  5. New vehicles costing $45,000 or more are not eligible.




Consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. Vouchers are limited to 7.5 percent of total funds. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also "trade down," receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 – 8,500 pounds."

To find out your current vehicles mileage click here. (www.fueleconomy.gov/feg/sbs.htm)

FAQ

Applications for rebates will not be accepted after 8 p.m. EDT Monday and dealers should not make further sales without receiving all the necessary paperwork from their customers. Dealers are also strongly advised to submit complete applications, which will expedite payment. Dealers will still be able to resubmit rejected applications after the deadline.

Q: Does the Cash for Clunkers bill apply to Pre-Owned vehicle purchases?

A: No, only new vehicle purchases.

Q: If I already purchased a new car, in the last few months, can the voucher apply to my past purchase?

A: No.

Q: If my current vehicle is worth more than $4,500, how would the Cash for Clunker voucher work?

A: The program would not provide any benefit if you own a vehicle worth more than $4,500 at trade-in. The program is designed to remove older, more polluting and unsafe cars off the roads.

Q: If dealers are offering cash incentives toward a new car purchase, would that be in addition to this voucher?

A: The program is independant from manufacturer buying incentives. For example, if a car dealer is offering $3,000 off the list price of a car and you qualified for a $4,500 voucher from your trade, then the total reduction off the MSRP would be $7,500.

Q: I have two old clunkers, can I trade-in both cars for a $9,000 voucher toward a new car purchase?

A: No, one voucher per new vehicle purchase and one trade-in.

Q: How do I know if I qualify for a $3,500 voucher or a $4,500 voucher?

A: Please review the table above and please don't hesitate to call us at the dealership s we have full details on all the models covered. Also note that Work Trucks put in service before 2002 are eligible for a voucher under certain circumstances. Please call us and we'll help you review the regulations.

Q: How can I find out the current EPA MPG estimates for the car I drive?

A: Visit: http://www.fueleconomy.gov/feg/sbs.htm

Q: Can I go to the junkyard a buy an old car and use it for a trade?

A: No, all trade-in vehicles need to have been in service for at least one year.

Q: What will happen to the car I trade in?

A: The dealership will turn it over to an authorized company who will destroy the engine and transmission of the vehicle. Other items may be recycled.

Q: How long will the program last?

A: Until November 1st 2009 or the funding expires.

Q: Are there restriction on the year of my trade-in?

A: The car can not be any older than a 1984 model year vehicle?

Q: Why would some trades qualify for $3,500 and other trades get $4,500?

A: The difference in vouchers depends on the improved gas mileage as compared to your trade. For example, if your new car purchase gets 4 mpg more than your trade you get $3,500. If the new car gets 10 mpg better than your trade you get $4,500.

Q: I have an old clunker truck that gets under 18 mpg. Can I trade that in for a car that gets over 22 MPG?

A: Yes.

Q: My parents own an old clunker. Can I transfer the title into my name and use it for a Cash for Clunkers trade-in?

A: No. But should your parents wish to trade in the vehicle, we can help.

Q: Can I buy any new car and still qualify? Does it have to be an American manufacturer?

A: You can buy any new car: foreign or domestic.

Q: Does the program apply if I want to lease a vehicle, or must I purchase a vehicle?

A: Under the program, you may purchase a new vehicle or lease a new vehicle, provided the lease period for the new vehicle is at least five years.

Q: Can I combine this credit with other government incentives?

A: Yes. You can combine this with other State and Federal incentives, such as the hybrid vehicle credit. For information on this credit, go to www.fueleconomy.gov. (www.fueleconomy.gov/Feg/tax_hybrid.shtml)

Q: If my current vehicle has scrap value, can I get value?

A: As the program requires the scrapping of your eligible trade-in vehicle, the dealer must disclose to you an estimate of the scrap value of your trade-in. So you can receive the scrap value, however minimal, and it will be in addition to the rebate, and not in place of the rebate.

Q: The New car I want is not on my dealers lot, but they have it on order. Can I still get this vehicle and the rebate?

A: NHTSA has clarified that consumers who want to purchase new vehicles not yet on dealer lots can still be eligible for the CARS program. Dealers and consumers who have reached a valid purchase and sale agreement on a vehicle already in the production pipeline will be able to work with the manufacturer to receive the documentation needed to qualify for the program. You still must take delivery of the vehicle by Sept. 30th, 2009.


Now is the time to act, already popular fuel efficient cars are moving off our lot quickly. The bill is now law and it is up and running, already people have benefited from this program, but we don't know how long the funding will last.

All you need to do is complete the form at the top of the page and we'll get your paperwork started so you don't miss out!