- 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 program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.
Q: Is Cash for Clunkers a scam?
No. The U.S. Government’s Cash for Clunkers (or CARS) Program is not a scam. It’s a legitimate program administered by the Department of Transportation. There are, however, plenty of scams popping up that are trying to take advantage of consumers looking to participate in the program. For more, see: Beware of Cash for Clunkers Scams. A better question might be, will it work? or will it be an efficient use of our tax dollars?
Q: When does the Cash for Clunkers or CARS program begin and how long does it last?
The Cars for Clunkers bill was made into law on June 25, 2009. The program was implemented on July 24, 2009. But transactions taking place between June 1, 2009 and November 1, 2009 are eligible. Note that funds for the program may run out prior to November 1, 2009.
Q: Where do I go to find the “official” government information about the CARS program?
Please visit the official Department of Transportation website at CARS.gov or call the CARS hotline at (866)-CAR-7891.
Q: Does the clunker trade-in need to have been registered and insured in your name for at least a year?
As far as I can tell, the clunker must have been registered in your name for at least one year. The CARS website says that the vehicle must have been insured for at least one year.
Q: My clunker is really old. How old can my clunker be to meet the requirements for this program?
The clunker needs to be less than 25 years old on the date you trade it in. The date the vehicle was made is located on the safety sticker found on the frame of the driver side door. Remember also that the clunker has to be in working condition. You can’t push it in.
Q: I’m currently leasing a vehicle? Does it qualify as my clunker?
No. You need to own the vehicle for it to be eligible. But you can trade-in a clunker that you own for a new car lease.
Q: Can you trade a clunker car for credit towards a new truck? And can you trade a clunker truck for credit towards a new car?
Yes. As long as the clunker and new car meet the miles per gallon (mpg) requirements and other requirements, it doesn’t matter if it is a car or a truck.
Q: What will the dealership do with my clunker once I trade it in?
The clunker cannot be re-sold. It must be destroyed. The dealer will likely sell it to a scrap yard. It’s possible some parts may be stripped from the cars. But the main body and drive chain must be destroyed.
Q: Can I get a “new to me” used car with the Cash for Clunkers program?
No. You must buy or lease (for 5 years) a brand new vehicle. Used cars are not allowed.
Q: Can I get a new 2008 vehicle?
Yes. As long as it’s new, not used, it is eligible.
Q: Can I trade in a clunker for a new motorcycle?
No. This only applied to autos.
If your question wasn’t answered above, please visit the Department of Transportation website for the program at CARS.gov.