We have received hundreds of email with questions about what the House and Senate has called the ?Cash for Clunkers? bill. The term ?Cash for Clunkers? is what America and the news media has used to describe a cash voucher program to purchase new fuel efficient cars for the past 6 months.

On or about July 22nd, the cash voucher program is now being called Car Allowance Rebate System (CARS) by the NHTSA. Information on the CARS program is available on the NHTSA website at http://cars.gov; the only Federal website for the CARS program. 

This website is created by consumers for consumers who have questions on the CARS progran.  This is not a government website.

Questions and Answers About CARS

We have taken the best questions submitted by consumers around the country and provided answers that we believe reflect the information provided on the CARS website as well as the text of the bill.  Consumers will have to validate all answers with their local dealer once the program starts.

If you have additional questions, after reading this page carefully, send us an email.  If your email question is answered on this sheet, you will not receive a response.

Q: Is the billed signed into law yet?

A: On Thursday, June 18th the Senate voted to KEEP the Cash for Clunkers provision in the $106 billion dollar wartime spending bill.  This means that both the house and Senate have approved the spending bill and now it will go to President Obama to sign.   We are told that consumers can start purchasing cars in late July but we are awaiting final details from NHTSA.  A firm start date has not yet been confirmed.

Q:   Are there updated conditions on the bill? 

A:  The purchased vehicles, which must be new and cost no more than $45,000, must be bought between Late July and Nov. 1 to qualify. You cannot trade in a clunker for a motorcycle. 

Q:  Where can I read a copy of the bill?

A:  Click here to read PDF:  http://www.cashforclunkersfacts.com/CARS-Law.pdf

Q: How do I find the combined EPA mileage estimates on my old clunker?

A:  Go to http://www.fueleconomy.gov/feg/sbs.htm and click on the model year of your 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 your vehicle. You may then enter the make, model, and model year of a new vehicle you may want to buy and see its combined MPG for comparison.

Q: Do I have to pre-qualify?

A: No.  Your car only has to be qualify for the program.  You can check if it qualifies on http://www.fueleconomy.gov/feg/sbs.htm

Q: Which dealers will be participating in the Car Allowance Rebate System (CARS)?

A:  Most new cars dealers in the USA will participate.  They will have to register with the CARS program.  Registration details have not yet been released.  However, most dealers are aware of the program and will be Particpating and registering as soon as they can.

Q: What do I need to bring to the dealership when I but by new car and bring my trade?

A:  You need to bring: title, registration & insurance papers showing continuous registration and insurance coverage for the past full year.  In any of these are not 100% in compliance, you may not qualify.

Q: Does the Cash for Clunkers bill apply to used car purchases?

A: Currently, the language of the proposed bill is only for new car purchases.  If you are looking for a used car, click here.

Q:  Is the value of the voucher tax-free to the consumer?

A: Yes. It works like a cash down-payment.  It does not lower your tax obligation on the purchase price.

Q: Is there an income limit that disqualifies certain vehicle owners?

A: No.

Q: If I already purchased a new car, in the last few months, can the voucher apply to my past purchase?

A:  No.  Car purchases made prior to the official start date will not qualify. 

Q: If my car is worth more than $4,500, how would the Cash for Clunker voucher work?

A: The program would not provide any benefit if a car dealer would give you more than $4,500 for your trade-in.  If you want to purchase a new car, do not wait on this bill if your trade is worth more than $4,500 since it will not provide any upside relief.

Q: If dealers are offering cash incentives toward a new car purchase, would that be in addition to this voucher?

A: The program is independant from manufacturer buying incentives.  For example, if a car dealer is offering $3,000 off the list price of a car and you qualified for a $4,500 voucher from your trade, then the total reduction off the MSRP would be $7,500.  You should always shop for the best deals before buying a car.

Q: I have two old clunkers, can I trade-in both cars for a $9,000 voucher toward a new car purchase?

A: The current wording of the bill would seem to indicate that only ONE voucher can be applied to a new car purchase.

Q: How do I know if I qualify for a $3,500 voucher or a $4,500 voucher?

A: Click on this link to get your EPA mileage estimates from the Federal website: Click on this link: http://www.fueleconomy.gov/feg/sbs.htm.  If you car gets a combined miles per gallon of 18 mpg or less, you can qualify as long as the car is not more than 25 years old.  Your voucher amount would then be determined by the new car you purchase.

Q: How do I find a local  CARS or Cash for Clunkers Participating Dealer?

A:  Most all dealers in your area will be particpating that sell new cars.  You can call them directly or if you want to purchase a new car, complete the form on the left.  We will have a local dealer in your state contact you and get all your trade-in information validated.  You will be able to start purchasing sometime in July.  Stay tuned for the exact date.

Q: Can I go to the junkyard a buy an old car and use it for a trade?

A: The clunker has to be registered and insured for one year continuously in the name of the person buying the new car.

Q: What will happen to the car I trade in?

A:  The car will be sent to the salvage yard.  Some parts may be kept but the engine and drivetrain will be crushed.

Q: My car is old and originally got more than 18 mpg, but now it gets 14 mpg.  Will it qualify?

A:  No.  The program is based on the ?combined? mileage estimates, a number in red,  found on this link:   http://www.fueleconomy.gov/feg/sbs.htm

Q: How long will the program last?

A:  Right now the CFC program will most likely run from sometime in July through November 1, 2009

Q: Are there restrictions on the year of my trade-in?

A: The car can not be any older than a 1984 model year vehicle.

Q: Why would some trades qualify for $3,500 and other trades get $4,500?

A: The difference in vouchers depends on the improved gas mileage as compared to your trade.  For example, if your new car purchase gets 4 mpg more than your trade you get $3,500. If the new car gets 10 mpg better than your trade you get $4,500.

Q: What if my trade-in is worth more than $4,500?

A: This program does not apply to you because you will be better off trading the car in through traditional channels. All cars that are part of the Cash for Clunkers bill will be sent to the scrapyard.

Q: I have an old clunker truck that gets under 18 mpg.  Can I trade that in for a car that gets over 22 MPG?

A: It would seem that you will be able to trade it in. We will wait on the final wording on the bill since this is a very popular question.

Q: My parents own an old clunker.  Can I transfer the title into my name and use it for a Cash for Clunkers trade-in?

A:  No.

Q:  Can I buy any new car and still qualify?  Does it have to be an American manufacturer?

A:  You can buy any new car: foreign or domestic.

Q: Can I lease a car or do I have to purchase/finance it?

A:  Qualifying leases must be at least 5 years long.  You can finance the car under any term you qualify for.

Bonus Assistance

Q: How can I find out the current EPA MPG estimates for the car I drive?

 A: Visit:  http://www.fueleconomy.gov/feg/sbs.htm