Cash For Clunkers

What is the Car Allowance Rebate System?

The CAR Allowance Rebate System (CARS) is a $1 billion government program that helps consumers buy or lease a more environmentally-friendly vehicle from a participating dealer when they trade in a less fuel-efficient car or truck. The program is designed to energize the economy; boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation's roadways.

Consumers will be able to take advantage of this program and receive a $3,500 or $4,500 discount from the car dealer when they trade in their old vehicle and purchase or lease a new one. Consumers you do not need to register anywhere or at anytime for this program. However, to find out eligibility requirements click here.

What is NHTSA doing to guard against fraud? Click here for more information. Allegations of fraud may be reported by calling our toll-free 24-hour hotline at 1-800-424-9071.

The U.S. Department of Transportation's National Highway Traffic Safety Administration released the final eligibility requirements for the Car Allowance Rebate System (CARS). To download the full document click here.

Consumer Bill of Rights

Qualified consumers may participate in the CARS Program between July 1, 2009 and November 1, 2009 or when authorized funds are no longer available.
Qualified consumers will receive a credit of $3,500 or $4,500 for an eligible trade-in toward the purchase of lease of an approved vehicle under CARS Program.
Qualified consumers will receive the $3,500 or $4,500 credit at the time the purchase their new vehicle.
Dealers must provide consumers with any other advertised rebates or discounts in addition to the credit they receive through the CARS Program.
Consumers should expect to conduct their deals at their dealership of choice, not on the Internet.
Consumers should expect the dealers to provide their best estimate of the scrap value for their eligible trade-in vehicle. Dealers are allowed to deduct $50 from this value for their administrative costs.
Consumers should expect that all information collected through the CARS Program will be kept confidential. Social Security numbers are not required for a CARS transaction.

Important Things to Know

Your vehicle must be less than 25 years old on the trade-in date
Only purchase or lease of new vehicles qualify
Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up 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
Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.