With the Cash for Clunkers program now called CARS (Cash Allowance Rebate System) nearing its launch, new car shoppers will soon have the opportunity to receive a $3,500 or $4,500 voucher towards the purchase or lease of a new vehicle if their trade-in vehicle meets specific program criteria (see list below). This government-funded program is meant to incentivize car shoppers to purchase or lease a new and more fuel efficient vehicle when they trade in a less fuel efficient vehicle.
To make this program easier and better understood by the consumer, AutoTrader.com and NADAguides.com have collaborated on a website tool located on both sites that allows car shoppers to enter their used "clunker" to not only see if it qualifies, but to see a large list of qualifying new vehicles and voucher amounts that may be applied towards the purchase. The trade-in vouchers range from $3,500 to $4,500 depending on the type of vehicle purchased and the difference in fuel economy (mpg) between the purchased vehicle and the trade-in vehicle.
"The Car Allowance Rebate System will work to not only get high polluting vehicles off the road, but will also help stimulate new vehicle sales. This is a win-win for consumers and auto dealers by helping car shoppers with new vehicle purchases," said Michael Caudill, automotive expert, NADAguides.com. "This is a great break for consumers who are either in the market for or considering the purchase of a new vehicle."
What are the trade-in qualifications needed to receive the voucher?
- 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
- Dealers must register to be a part of the program. Consumers should ask this of dealers
- You don't need a voucher, dealers will apply a credit at purchase
- Program runs through Nov. 1, 2009 or when the government funds are exhausted, whichever comes first
- The vehicle that you are trading in is required to be destroyed. Therefore, the value you negotiate with the dealer for your trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to you an estimate of the scrap value of your trade-in vehicle.
To find out if your vehicle qualifies and to view a list of qualifying vehicles and associated voucher amounts, visit the CARS tool at NADAguides.com or AutoTrader.com.