Cash for Clunkers rules

Here’s a list of rules governing the “Car Allowance Rebate System,” otherwise known as “Cash for Clunkers”:

The CAR Allowance Rebate System (CARS) is a $1 billion government program that helps consumers buy or lease a more environmentally-friendly vehicle from a participating dealer when they trade in a less fuel-efficient car or truck. The program is designed to energize the economy; boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation’s roadways.

Consumers will be able to take advantage of this program and receive a $3,500 or $4,500 discount from the car dealer when they trade in their old vehicle and purchase or lease a new one. Consumers you do not need to register anywhere or at anytime for this program.

• Qualified consumers may participate in the CARS Program between July 1, 2009 and November 1, 2009 or when authorized funds are no longer available.
• Qualified consumers will receive a credit of $3,500 or $4,500 for an eligible trade-in toward the purchase of lease of an approved vehicle under CARS Program.
• Qualified consumers will receive the $3,500 or $4,500 credit at the time the purchase their new vehicle.
• Dealers must provide consumers with any other advertised rebates or discounts in addition to the credit they receive through the CARS Program.
• Consumers should expect to conduct their deals at their dealership of choice, not on the Internet.
• Consumers should expect the dealers to provide their best estimate of the scrap value for their eligible trade-in vehicle. Dealers are allowed to deduct $50 from this value for their administrative costs.
• Consumers should expect that all information collected through the CARS Program will be kept confidential. Social Security numbers are not required for a CARS transaction.
• 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 program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.

To read more, visit the official site at cars.org.

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