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"CASH FOR CLUNKERS" PLAN WRAPS UP

CARS Act allowed consumers to get up to $4,500 for their old vehicle
when they bought a new, fuel-efficient car

Updated Aug. 26, 2009

UPDATE (Wednesday, Aug. 26): The U.S. Government closed up the "Cash for Clunkers" program this week. It was reported that consumers bought almost 700,000 new cars through the program and received nearly $3 billion in rebates.

The U.S. Government recently completed the CARS (Car Allowance Rebate System) Act, which offered consumers a rebate up to $4,500 if they traded in their old vehicle and bought a new one with better gas mileage.

For more information, go to the U.S. Government website, Cars.gov.

Here were some of the basics of the program:

1. To qualify, your current car (or "clunker") must:

  • Be a 1984 model or newer
  • Have a combined city/highway fuel economy of 18 miles per gallon or less
  • Be drivable
  • Be continuously insured and registered to the same owner for a year before you trade it in

2. The amount of the credit is $3,500 or $4,500, depending on the new car you buy and the difference in gas mileage between the new car and your clunker.

3. The credit is in addition to any manufacturer or dealer incentive.

4. Dealers cannot charge you a fee for participating in the program. You do not have to get a voucher or sign up for any other program to participate.

5. Used car purchases don’t qualify. You can trade in your clunker for the purchase or lease of a new car.

6. American and foreign passenger cars qualify for the program, as long as they:

  • Meet minimum fuel-economy standards: 22 miles per gallon for passenger cars, 15 for SUVs and small and medium pickup trucks and vans
  • Have an MSRP of no more than $45,000

7. Your clunker must be scrapped after you trade it in. The dealer must tell you and give you credit for the scrap value. This amount is in addition to the rebate.

8. The program ends on Aug. 24 2009 at 5 p.m. Pacific time.

Check the U.S. Government's handy step-by-step guide to see how your current vehicle and possible new car stack up in the program.

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