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“Cash for clunkers” rolls out

Tuesday, July 28, 2009

CARS (Car Allowance Rebate System), the so-called "cash for clunkers" program, was given the green light by the government on July 27. The program helps consumers buy or lease environmentally-friendly vehicles when they trade in a less fuel-efficient car or truck by providing a $3,500 or $4,500 discount from an authorized dealer. The exact amount of the credit varies depending on the vehicle you’re trading in, and the one you’re buying or leasing. Dealers aren't allowed to charge you a fee for participation in the program; in fact, they are required to destroy your old car and give you the scrap value for it.

The catch is that your car has to qualify for the program. A few key requirements for your clunker include:

• It must be less than 25 years old (before the trade-in date)
• It must have a "new" combined city/highway fuel economy of 18 miles per gallon or less
• It must be in drivable condition
• It must be continuously insured and registered to the same owner for a full year prior to the trade-in date

Check out a step-by-step guide to help you determine if your clunker and new car qualify.

The CARS program won't last forever - it is slated to run until November 1, 2009 or until it runs out of money (which ever happens first).

The FTC has issued a warning about "Cash for Clunkers" scams. Find out more at the FTC's website Steer Clear of "Cash for Clunkers" Scams

You can also find out more by calling the CARS Hotline at 866-227-7891 or by visiting the official website at CARS