Cash for Clunkers Information

ALERT!!! The Cash for Clunkers Program administered by the US Government ended in 2009 and it is unlikely it will be restarted anytime in the near future. You can receive a great price on your used car by completing the Request a Free Quote on the right side of the screen. Or alternatively if you have a clunker you can donate it to charity.


Car Donation Info

What is Cash for Clunkers?

Cash for Clunkers is the term used to describe recently passed legislation concerning the offering of credits toward the purchase of new cars in exchange for disposing of/trading in a registered motor vehicle meeting certain criteria. The government is calling the program Car Allowance Rebate System(CARS) and has set up a website www.cars.gov.

How do dealers sign up to participate in the program?

President Obama signed the Cash for Clunkers Bill on June 24th, the National Highway Traffic Safety Administration(NHTSA) has mailed dealers information on how they can sign up and how the program will work from both a dealer and car owner perspective. Even though the NHTSA didn't issue its final rules until July 24th qualifying clunkers traded in beginning July 1, 2009 are eligible for the credit. All the risk falls on the dealer to insure that the vehicle meets the requirements of the program. Dealers will have to certify that the vehicles are drivable, meet the mileage requirement, are less than 25 years old, have been insured for 1 consecutive year and have been registered by the owner for 1 consecutive year. The owner of the trade in must also be the purchaser of the new vehicle. The insurance requirement is waived in Wisconsin and New Hampshire because there is no State Law requiring auto insurance. The dealer is also responsible for insuring that the trade-in vehicle is sent to a disposal facility approved by the NHTSA.

What will be the basic requirements of a participating dealer?

A participating dealer will be authorized to issue a credit to offset the purchase price or qualifying lease of any qualifying new fuel efficient automobile offered for sale by the dealer upon the trade in of a qualifying vehicle. The credit can be used toward the down payment or partial payment of the new vehicle. Also the dealer must transfer the eligible trade-in vehicle to a NHTSA approved entity for disposal.

How long will the program last?

The program is authorized by Congress through November 1st 2009 or until the $3 billion in approved funding runs out, whichever occurs first. If the program is successful and Congress can find the funds it may be extended. But the mileage requirements may become more stringent.

Are their limits on the number of vouchers per person?

Only 1 voucher may be issued for a single person. Also only 1 voucher may be applied toward the purchase or lease of a vehicle. Only the person who owns the trade in may use it towards the purchase of a new car.

How will dealers be paid for vouchers?

Dealers will submit documentation to the government for payment and be paid through electronic transfer within 10 days of submiting the required documentation to the government.

What are dealers required to do with clunkers that are traded in?

The dealer will be required to disclose to the person trading in an eligible trade in vehicle the best estimate of the scrappage value of the vehicle. The dealer must credit the scrap value less a $50 administrative fee to the purchaser. The NHTSA has modified the original rules to allow dealers to hold the trade in on their lot until they are paid by the goverment before disabling the vehicle. The was prevent undue hardship to the dealer in the event that the application for payment is denied by the government. Then the at least the dealer could resell the vehicle. Ultimately the dealer will have to certify that the trade in vehicle is disposed of as required by the cash for clunkers law and environmental laws and regulations. The NHTSA has issued a list of companies dealers can transfer vehicles to.

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