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Cash For Clunkers Program

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.

Under the CARS program, NHTSA is charged with rules for program implementation in 30 days. You may want to contact your local dealer in mid-July. 

Check back to this site often for updates and further information.

5 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

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What is the Car Allowance Rebate System?

The Car Allowance Rebate System is a new program from the government that will help you pay for a new, more fuel efficient car or truck from a participating dealer when you trade in a less fuel efficient car or truck.


What is NHTSA doing to implement the program?

As required under the law, NHTSA will publish rules for the program in 30 days. We are currently working closely with manufacturers, dealers, and disposal facilities to get a workable, effective program up and running.


Do I need to get a voucher or sign up for this program?

No. You do not need a voucher and you are not required to sign up or enroll in this program. Participating new car dealers will apply a credit, reducing the price you pay at the time of your purchase or lease, provided the vehicle you buy or lease and the vehicle you trade in meet the program requirements. The dealer will then obtain reimbursement from the government.


How do I know if a dealer is participating in the program?

The law requires dealers to be registered to participate in the program. We are moving as quickly as possible to register interested dealers. As dealers are registered, we will list them on this website. We will continue to update this list during the life of the program. Meanwhile, you may wish to contact dealers in your area to ask whether they plan to participate in the program.


How do I know if my car or truck is an eligible trade-in vehicle?

There are several requirements (but you also have to meet certain conditions for the car or truck you wish to buy). Your dealer can help you determine whether you have an eligible trade in vehicle.

Your trade-in vehicle must

  • have been manufactured less than 25 years before the date you trade it in
  • have a ?new? combined city/highway fuel economy of 18 miles per gallon or less
  • be in drivable condition
  • be continuously insured and registered to the same owner for the full year preceding the trade-in
Note that work trucks (i.e., very large pickup trucks and cargo vans) have different requirements.


How do I find out when my vehicle was manufactured?

The month and year of manufacture (e.g., 1-96 (January 1996)) appear on the safety standard certification label that is located on the frame or edge of the driver?s door in most vehicles.


How do I find out the combined city/highway fuel economy rating of my trade-in vehicle?

Go to http://www.fueleconomy.gov/feg/sbs.htm and click on the model year of your vehicle, the make, and then the model. Under the words "ESTIMATED NEW EPA MPG" in the red banner, there is a red number with the word "COMBINED" under it. That is the new combined city/highway fuel economy for your vehicle. You may then enter the make, model, and model year of a new vehicle you may want to buy and see its combined MPG for comparison.


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

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.


Is there a cap on the price of the vehicle I can buy or lease under the program?

Yes. The manufacturer's suggested retail price cannot exceed $45,000.


Does the program apply if I want to buy a used car?

No. The program does not apply to the purchase of used vehicles.


What is the amount of the credit?

The amount of the credit is $3,500 or $4,500, and generally depends on the type of vehicle you purchase and the difference in fuel economy between the purchased vehicle and the trade-in vehicle. Different requirements apply for work trucks.


In addition to the credit, will I get the full value of my trade-in vehicle?

No. The law requires your trade-in vehicle to be destroyed. Therefore, the value you negotiate with the dealer for your trade-in vehicle is not likely to exceed its scrap value. The law requires the dealer to disclose to you an estimate of the scrap value of your trade-in vehicle.


I don?t drive an American car but I would like to trade in my old car for a newer, more fuel efficient one. Is this program only for American cars?

No. You may trade in or buy a domestic or a foreign vehicle.


I have a truck and I cannot find its fuel economy rating. Is it an eligible trade-in vehicle?

Maybe. Some trucks, such as work trucks, were never rated for fuel economy. For these trucks, age is the only criterion for determining whether they are eligible trade-in vehicles. If you have one of these trucks, it must be from model year 2001 or earlier, but also the date of manufacture must be less than 25 years from the date you trade it in, to be an eligible trade-in vehicle. Other restrictions may also apply.


I just traded in my old car for a new vehicle last month. Will I get some money back?

No. The program does not apply retroactively.