Page 21. Is any old car eligible for the Car Allowance Rebate System program?
No. Only vehicles from the 1984 model year and newer are eligible for a CARS voucher. The vehicle must be in drivable condition -- so no tow-ins are allowed. The vehicle to be traded must achieve no more than an average combined 18 miles per gallon or less according to the EPA estimates at www.fueleconomy.gov. The car also needs to have been continuously registered and insured in your name for a year. This helps ensure that Cash for Clunkers won't help prospective scammers hoping to turn a dime at taxpayers' expense.
Eligible vehicle, (city/hwy/combined)
Chevrolet Cobalt, 24/33/27
Page 22. How much can I get for my "Clunker"?
It depends. If the vehicle you're trading for is a passenger car and gets at least 4 miles per gallon more than the one you're trading in, you'll get a $3,000 voucher; if the new vehicle gets at least 10 miles per gallon more than the traded vehicle, you'll get a $4,500 voucher. The new passenger car must have an MSRP less than $45,000.
Eligible vehicle, (city/hwy/combined)
Ford Escape, 22/28/24
Page 23. And what if I want to use a voucher towards a truck, SUV, or vans?
Not a problem. Category 1 SUV, pickup trucks, or minivan models that get at least 2 miles per gallon more than the traded vehicle will be good for a $3,500 voucher, and a $4,500 voucher will be awarded if the new vehicle achieves at least 5 miles per gallon more than the traded vehicle. Category 2 and Category 3 trucks are handled in a different matter (you must be trading in a Category 2 or 3 truck to get one), although they can be voucher eligible, making small businesses a beneficiary of the CARS program as well.
Eligible vehicle, (city/hwy/combined)
Honda Accord, 22/31/25
Page 24. What constitutes a Category 1, 2, and 3 vehicle?
According to the Governments, "a category 1 truck is a non-passenger automobile. This category includes sport utility vehicles (SUVs), small and medium pickup trucks and small and medium passenger and cargo vans. A category 2 truck is a large van or a large pickup truck, based upon the length of the wheelbase (more than 115 inches for pickup trucks and more than 124 inches for vans). A category 3 truck is a work truck and is rated between 8,500 and 10,000 pounds gross vehicle weight. This category includes very large pickup trucks (those with cargo beds 72 inches or more in length) and very large cargo vans."
Eligible vehicle, (city/hwy/combined)
Hyundai Genesis, 18/27/21
Page 25. What happens to the traded vehicles after they are turned in?
All vehicles traded in are required by law to be scrapped. They'll be shredded or crushed, though body parts, electrical, interior and glass may be retained by the salvage company for resale. The engine will be destroyed, as well as the body. The idea is to get these gas guzzlers off the road. The dealer will handle this part of the trade after taking possession of the traded vehicle, so you don't need to worry about taking your car to a junkyard.
Eligible vehicle, (city/hwy/combined)
Jeep Patriot, 23/27/24
Page 26. What if the trade-in value of my vehicle is more than the Cash for Clunkers voucher? Will I receive the difference?
No. The voucher does not cover additional value of the vehicle, so if your car or truck is worth more than $4,500 when you decide to trade it in, you probably should think twice about taking part in the program. The Cash for Clunkers program has no additional benefit or tax break for vehicles worth more than the voucher value.
Eligible vehicle, (city/hwy/combined)
Kia Forte, 25/34/28
Page 27. Where can I find information about the average fuel economy of my car and of new cars?
The official source of fuel economy estimates, as dictated by the guidelines of the Cash for Clunkers legislation, is the combined EPA estimate found on the new-car window sticker or at www.fueleconomy.gov. We've also put together a quick and easy tool for evaluating your car, and you can find it using the "Evaluate my vehicle" link on this gallery's pages.
Eligible vehicle, (city/hwy/combined)
Mazda3, 25/33/28
Page 28. What if the car I want to buy is a used car?
Then you're out of luck. The Cash for Clunkers legislation does not provide for people who want to buy a used car. It is intended to help jump-start the car companies as well as get gas-guzzling vehicles off the road, so used cars aren't covered. The vehicle purchased must be a new, unregistered and never-before-insured car or truck.
Eligible vehicle, (city/hwy/combined)
Nissan Altima, 23/32/26
Page 29. OK. But what if the car I want to buy is new, but not from the 2009 model year?
As long as the vehicle to be purchased is a new, not previously registered or insured car or truck that fits within the parameters of the Cash for Clunkers legislation, then you're good to go. If you notice that your local dealership is slashing $2,500 or more off the cost of the 2008 models to make room for the 2009s, you'll be way ahead of the game to begin with.
Eligible vehicle, (city/hwy/combined)
Pontiac Solstice, 19/29/23
Page 210. Can I still get other dealer incentives and offers?
Yes. One of the cool parts of Cash for Clunkers is that you can stack your offers. Let's say you're trading a 1985 Suburban worth about $1,000 for a new Chevrolet Malibu Hybrid. You'll receive the $4,500 from the government, a $1,300 tax credit from the IRS (for 2008 model year Malibu Hybrid), as well as any incentives from GM (for instance, the 2009 Malibu Hybrid was recently available with a $1,000 customer loyalty offer.) Either way, you're going to get at least $5,500 off the price of a new vehicle, and $5,800 off a 2008 Malibu Hybrid.
Eligible vehicle, (city/hwy/combined)
Saturn AURA, 22/33/26
Page 211. I don't need a new car now, but this sounds interesting. How long does Cash for Clunkers run?
Congress appropriated $1 billion for the program; when that money's gone, the program ends. If that money is not used up by the end of October, then the program ends. Your best bet is to move quickly, as there are a lot of folks out there who will be ready to go with their old cars. There is speculation if the program is successful, the Government will pas legislation to extend more funding.
Eligible vehicle, (city/hwy/combined)
Subaru Legacy, 20/27/22
Page 212. Is the Cash for Clunkers program a tax rebate?
No. Cash for Clunkers works like a purchase incentive or trade-in for your car. It can be used to cover a down payment, or work in conjunction with a down payment to reduce the purchase price of a new vehicle. Cash for Clunkers vouchers will not be distributed with your 2009 income taxes. It is not considered taxable income, either, according to the IRS, so you won't have to pay taxes on the incentive at the end of the tax year.
Eligible vehicle, (city/hwy/combined)
Smart Fortwo, 33/41/36
Page 213. I have two cars I want to trade in. Can I do that?
Only one of the vehicles will be eligible for Cash for Clunkers. Depending on the dealership, however, you might be able to sell them the second vehicle straight out, and further increase your down payment. Only one voucher is allowed per registered vehicle owner per car.
Eligible vehicle, (city/hwy/combined)
Toyota Prius, 51/48/50
Page 214. A dealer wants to charge me a "Cash for Clunkers" fee to scrap my vehicle, is this allowed?
No. The text of the CARS legislation explicitly prohibits dealers from charging a fee for purchasing or leasing a vehicle under the terms of the program. Likewise, any website that proposes charging you to help complete the trade-in process or "authorize" your vehicle, provide you a voucher, etc. is likely a scam, so steer clear.
Eligible vehicle, (city/hwy/combined)
Volkswagen GTI, 22/29/25
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