Get up to $4500 from the government towards the purchase of your next new car!     "Cash for Clunkers" - a program that allows consumers with older, less fuel efficient vehicles to trade in their "clunker" for a voucher worth up to $4,500 toward the purchase or lease of a new car with improved gas mileage of between 1 and 10 miles per gallon, depending on the vehicle purchased. The government's official site, www.cars.gov is where you'll find the government's details for the Car Allowance Rebate System program.

The NHTSA says, "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 meets the program requirements."

Important Things to Know

(From the NHTSA)

1. Your vehicle must be less than 25 years old on the trade-in date
2. Only purchase or lease of new vehicles qualify
3. Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements, 15mpg)
4. Trade-in vehicles must be registered and insured in your name continuously for the full year preceding the trade-in
5. You don't need a voucher, dealers will apply a credit at purchase

Source: www.cars.gov - official website of the NHTSA

Rules and Regulations

1. In the case of a passenger automobile, category 1 truck, and category 2 truck, as those terms are defined in the Act, the vehicle must have a combined fuel economy value of 18 miles per gallon or less.
2. The trade-in vehicle must be in drivable condition
3. The trade-in vehicle must have been continuously insured, in accordance with State law, and registered in the same owner's name for the one-year period Immediately prior to the trade in;
4. The trade-in vehicle must have been manufactured not earlier than 25 years before the date of trade in and, in the case of a category 3 vehicle, must also have been Manufactured not later than model year 2001;
5. Owners who purchase a new passenger car that gets at least 4 mpg higher than their old "clunker" get a $3,500 voucher. If the mileage difference is more than 10 mpg, the consumer gets the full $4,500.
6. Buyers of small trucks and SUV's need less of an improvement to get the same amounts. If the new vehicle gets at least 2 mpg more than the "clunker," a $3,500 voucher is issued; for new trucks or SUV's getting 5 mpg, the new car owner gets $4,500.
7. Work trucks received $3500 towards purchase of another category 2 or 3 truck that is of a similar size of smaller if they were manufactured not later than 2001 and not earlier than 25 years before the trade in date.
8. You cannot get credit for a vehicle that costs over $45,000
9. Trade in vehicle would be disposed of (i.e., crushed or shredded) in a manner that ensures it would never be used again.
10. Any lease under the program must be for a period of at least five years

1This means that all pre-model year 1984 vehicles, and most model year 1984 vehicles, are not eligible as trade in vehicles.
2There is no minimum for category 3 trucks because they do not have any miles-per-gallon ratings
Source: Cars.gov

 

The NHTSA says, "Participating new car dealers will apply a credit, reducing the price you pay at the time of your purchase or lease, provided the vehicle meets the program requirements."

Incentive Breakouts

 

Incentive Amounts
If the type of new vehicle you want is a...	Amount of incentive	The combined MPG* of the new vehicle must be...	The type of vehicle you trade-in must be a...	If the difference in combined MPG between the new vehicle and trade-in vehicle is...	The incentive is...
Passenger Automobile All passenger cars.	At least 22 MPG	Passenger car, Category 1 or 2 truck	4-9 MPG 10 MPG or more	$3,500	$4,500
Category 1 Truck:** All SUVs w/ GVWR <=10,000 lbs. Pickups w/ GVWR <8,500 lbs. & wheelbase <= 115 in. Passenger vans & cargo vans w/ GVWR <8,500 lbs. & wheelbase <= 124 in.	At least 18 MPG	Passenger car, Category 1 or 2 truck	2-5 MPG 5 MPG or more	$3,500	$4,500
Category 2 Truck:** Pickups w/ GVWR <= 8,500 lbs. & wheelbase > 115 in. Passenger vans & cargo vans w/ GVWR <= 8,500 lbs. & wheelbase > 124 in.	At least 15 MPG	Category 2 truck Category 3 truck	1 MPG 2 MPG or more NA**	$4,500
Category 3 Truck:** Trucks w/ GVWR 8,500-10,000 lbs. that are either pickup trucks with cargo beds 72" or longer or very large cargo vans.	NA** However, the new vehicle must be similar in size or smaller than the trade-in	Category 3 truck	$3,500

*MPG requirements are based on EPA's combined city/highway rating

**GVWR = Gross Vehicle Weight Rating

***Not applicable; Category 3 trucks do not have EPA MPG ratings

 

SUMMARY TABLE
Trade-in Vehicle	Is in drivable condition Has been both continuously insured, consistent with the laws of your State, and continuously registered to the same owner for at least one year immediately prior to the trading-in of your vehicle under the CARS program Manufactured less than 25 years before the date of trade in (i.e., before mid- to late-1984) and, in the case of category 3 trucks, not later than model year 2001 Has a combined MPG of 18 or less (this does not apply to category 3 trucks, i.e.,very large pickup trucks and cargo vans)
New Vehicles (Purchased or lease)	Is new (legal title has not been transferred to anyone) Has manufacturer's suggested retail price of $45,000 or less

 

Use the MPG calculator to see if your vehicle qualifies