Cash for Clunkers, now officially known as the Car Allowance Rebate System (CARS) — is a federal program passed by Congress and signed into law by President Obama on June 24.The program is meant to encourage consumers to trade in older, less fuel-efficient vehicles for new vehicles that get better fuel economy by providing a credit worth up to $4,500. Modeled after several programs that have already been successfully implemented in Europe, the program is expected to begin on July 23 and end on November 1, 2009.
The federal government, beginning as soon as Friday, has a deal for Burns and others with similar vehicles that meet low fuel economy standards. They'll get a minimum of $3,500 toward the purchase of a new vehicle as part of what's become known as the "cash for clunkers" program.
The $1 billion clunkers program will cover about 250,000 cars nationwide, industry-watchers say.