Cash for Clunkers
Q. What is the Car Allowance Rebate System?
A. 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 when you trade in a less fuel efficient car or truck.
Q. How will the program work?
A. Used vehicles with a combined fuel economy rating of 18 mpg or less may qualify for a government incentive of $3,500 or $4,500. The incentive must be used to offset the purchase price or lease price of a qualifying new vehicle. The trade-in vehicle must be less than 25 years old (Model Year 1984 and newer) from the date of the transaction. The month and year of the vehicle can be located on the frame of the driver’s door.
Q. When does the program start? And when does it end?
A. The program runs from July to November 1, 2009, unless the $1 billion appropriation runs out first. The National Highway Traffic Safety Administration (NHTSA) expects to have the program up and running by July 24. NADA will notify all dealers as program elements are rolled out by NHTSA.
Q: How do I find out the combined city/highway fuel economy rating of the trade-in vehicle?
A: Go to fueleconomy.gov’s side by side vehicle comparison and click on the model year of the 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 the vehicle.