Cash for Clunkers is proving to be a tremendous success as consumers rush to dealerships to take advantage of the discount offered for the trade in of their old, gas guzzling vehicles for new, more fuel efficient models.

The Car Assistance Rebate System (CARS) more commonly known as “Cash for Clunkers”, was signed into law by President Obama on June 24, 2009.The program encourages consumers to trade in their older, less fuel efficient vehicles for newer models with improved fuel efficiency.

The Cash for Clunkers program, implemented by the National Highway Traffic Safety Administration (NHTSA), provides a discount of $3,500. Or $4,500 for the trade in of eligible vehicles for new fuel efficient vehicles. No preregistration is required to participate in the program. The discount is applied directly to the transaction by participating car dealers. Dealers are not able to resale the trade in car and must instead “junk” the vehicle being traded in. The program runs from July 1, 2009 to November 1, 2009 or until the allotted $1 billion funding the program runs out.

The $3,500 or $4,500 discount coupled with matching rebates offered by many participating dealers allows consumers to purchase vehicles at huge discounts. They will be able to get rid of their old, gas guzzling vehicles at huge savings, have a positive effect on the environment, and boost the economy by purchasing newer fuel efficient vehicles.

Consumers can take comfort in the fact that they will play an active role in helping the environment. Driving fuel efficient, environmentally friendly vehicles contributes less to the warming of the planet by reducing greenhouse gas emissions.

The economy benefits as a result of the Cash for Clunkers program when car manufacturers, dealers, and other businesses related to the car industry receive a much needed boost in sales and activity. With the improved fuel efficiency of the newer cars, consumers will see savings in the amount of money they spend on gas and are likely to see savings on the maintenance of their newer vehicle as they generally require fewer repairs than older vehicles require.

There are several options available to consumers to see if they have a qualifying vehicle. They can work directly with participating dealers who are well versed on the rules and qualifications of the Cash for Clunkers program or they can browse through our Cash for Clunkers Car List to see if their car made their clunker made the list.

NHTSA established information about how to participate in the cash for clunkers program, which vehicles are eligible and dealers that are participating. Consumers can follow simple guidelines to see if their vehicle may be eligible (note that some very large trucks or cargo vans may have different requirements and that some cars within the 25 year range may not be eligible).

Trade in vehicles must:

• Be less than 25 years old.
• Be in working condition.
• Have been continuously insured and registered the entire preceding year by one owner.
• Have a new combined city/highway fuel economy value that does not exceed 18 miles per gallon.

Passenger vehicles purchased or leased must be new and not have a price tag of more than $45,000. The new vehicle must meet the minimum combined fuel economy value of 22 miles per gallon.

The $3,500 discount from the Cash for Clunkers program may be used if the new vehicle being purchased is a passenger vehicle and has a combined fuel economy rating of at least 4 miles per gallon higher than the eligible vehicle being traded in. Very large trucks and cargo vans have different eligibility requirements based on their size, weight and year manufactured.

The $4,500 discount from the Cash for Clunkers program may be used if the new vehicle being purchased is a passenger vehicle and has a combined fuel economy rating of at least 10 miles per gallon more than the eligible vehicle being traded in. Very large trucks and cargo vans have different eligibility requirements based on their size, weight and year manufactured.

Any additional rebates offered by participating car dealers are to be used in addition to the discount of $3,500 or $4,500 offered by the Cash for Clunkers program.

To the right is a compiled list of all the cars that generally qualify for the Cash for Clunkers Program. For more specific requirements please contact your local car dealership.