by Samia S. Morgan
By now you have most likely heard about the Cash for Clunkers. If you feel you qualify for this rebate make sure you do your homework before assuming you can trade that old clunker in for a new one.
Visit www.CARS.gov for information on how the Cash for Clunkers rebate system works.
Here are some important thing to know:
Consumer Bill of Rights:
- 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.
CARS Back on the Road
The CAR Allowance Rebate System (CARS) is still operating.
Consumers can still take advantage of the government program and receive a $3,500 or $4,500 discount for their trade-in vehicle when purchasing or leasing a new vehicle.
Check back often to this site for updates and information.
Important Information on new MPG Ratings:
In conjunction with the CARS final rule, EPA updated fuel economy data on fueleconomy.gov on July 24th. The changes affected the eligibility of certain vehicles under the CARS program.
Of the 30,000 vehicle model types spanning 25 years, 78 cars no longer qualify, but 86 new vehicles are now eligible.
NHTSA will process transactions in accordance with the data on fueleconomy.gov. The 78 vehicle model types that were eligible under EPA's mileage criteria until EPA's revisions were issued on July 24th will continue to be considered as eligible for transactions that occurred on or before July 24th.
The 86 model types that became eligible on July 24th will be treated as eligible if they are part of sale or lease that occurred on or after July 24th.
Click here to view the list of eligible cars
Click here to view the list of ineligible cars
To search all vehicles, click the MPG Ratings tab at the top of the page
What is the Car Allowance Rebate System?
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. However, to find out eligibility requirements click here.
What is NHTSA doing to guard against fraud? Click here for more information. Allegations of fraud may be reported by calling our toll-free 24-hour hotline at 1-800-424-9071.
Check back to this site often for updates and further information.
Consumer Bill of Rights
- 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.
New Amendment To The Rule
The agency amended its rule implementing the CARS program. Dealers may now choose to disable the engine of the trade-in vehicle after they receive payment from the government for the credit (not more than seven calendar days after payment). However, until the vehicle’s engine is disabled, the dealer must store the vehicle at a location under the control of the dealership.
In addition, because New Hampshire and Wisconsin do not have an insurance requirement under State law, trade-in vehicles registered in these two States are exempt from the one-year insurance requirement.
Remember to visit www.CARS.gov for information.
