CARS Allowance Rebate System (aka Cash For Clunkers) rules officially announced

CARS Allowance Rebate System

The U.S. government has officially launched the website which spells out the rules to its new Car Allowance Rebate System (CARS) program. The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) released the final eligibility requirements for the program earlier today. To download the full document click here.

If you don’t have time to go through the whole PDF – here are some important things that NHTSA wants you to know before you run into get your CARS rebate:

– 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.

– By: Omar Rana