Under the law, consumers can get up to $4,500 toward a new more fuel-efficient car when they trade in an older model with worse gas mileage, under the new system.
The formal name of the program is the Car Allowance Rebate System (CARS). "Under the CARS program, NHTSA [National Highway Traffic Safety Administration] is charged with rules for program implementation in 30 days," according to the U.S. Department of Transportation's Web site. "You may want to contact your local dealer in mid-July."
Consumers can sign up for updates as the program rolls out to car buyers and dealers. The program ends on November 1, 2009. It is designed to stimulate the auto industry and act as an environmental aid, since it is intended to encourage consumers who own an older gas guzzler to purchase or lease a new, fuel-efficient vehicle.
The National Automobile Dealers Association is telling its dealers to wait until the rules are out in July before participating.
According to the U.S. Department of Transportation, the trade-in vehicle must meet these requirements to qualify for the program:
- The vehicle must be less than 25 years old on the trade-in date.
- Only the purchase or lease of a new vehicle qualifies.
- Trade-in vehicles must get 18 miles per gallon or less, although the law notes "some very large pickup 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."
+ Cash For Clunkers Car Buying Stimulus Bill
+ BMW Used Cars Eligible for 'Cash For Clunkers'
+ Cash for Clunkers: Eligible Used Cars List Under $3,500
The cash-for-clunkers provision was passed as part of a larger $106 billion military spending bill.
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