Cash for Clunkers, or Donate?!?

Released: Thursday, July 30, 2009

What is the “Cash for Clunkers” Car Allowance Rebate System?

President Obama signed into law a program called the Car Allowance Rebate System (CARS) also known as Cash for Clunkers. This is a federal program that helps you purchase a new, more fuel efficient vehicle when you trade in a less fuel efficient vehicle.  This program runs through November 1, 2009 or when funds are exhausted, which ever comes first.

Do I Qualify for the CARS Program?

• The vehicle is titled in your name for at least one year
• The vehicle has been insured for the past year
• The vehicle is in drivable condition
• The vehicle is less than 25 years old at the date of trade-in
• The trade-in vehicle must get 18 MPG's or LESS www.fueleconomy.gov/feg/findacar.htm
• Large pick-up trucks and cargo vans may have to meet different requirements
• have not previously participated in the CARS program

• CARS program does not allow you to purchase a used vehicle
• You may lease a new vehicle provided the lease period is 5+ years
• MSRP on purchase vehicle may not exceed $45,000.00
• The new vehicle to be purchased must have a combined fuel economy value of at least 22 MPG
• Different fuel economy requirements apply for work trucks
• More information available at http://www.cars.gov