CA$H FOR CLUNKER$

What is the Car Allowance Rebate System? President Obama signed into law a program NHTSA is calling the Car Allowance Rebate System (CARS). This is a government program that helps you purchase a new, more fuel efficient vehicle when you trade in a less fuel efficient vehicle. See the Frequently Asked Questions for more details.

While the CARS Act makes transactions on and after July 1 potentially eligible for credits under the CARS program, interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued. Issuance will occur around July 23.

What is NHTSA doing to guard against fraud? Check back to this site often for updates and further information. Important Things to Know .. 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 vehicle that you are trading in is required to be destroyed. Therefore, the value you negotiate with the dealer for your trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to you and estimate of the scrap value of your trade-in vehicle.

Check this site frequently for the most recent updates from the government. http://www.cars.gov Visit CARS.gov for current information about the program. Determine if you qualify, then shop for a new car.

Bring the title, registration and insurance papers showing continuous registration and insurance coverage for the past full year.

When you buy or lease a new vehicle, the dealer handles the submission of all required information to NHTSA.

NHTSA ensures that your purchase meets the requirements.tion to NHTSA.

About 10 days later, NHTSA will issue a financial credit to the dealer.