The Cash for Clunkers stimulus bill has become a major success. The rebate program has done so well it almost ran out of funds. Congress had to inject two million dollars of budgeted money for renewable energy research to the car incentive program. This is great news for the US economy and will it help boost the economy.The program gives consumers up to $4500 to buy a new fuel efficient car when they trade in an old gas guzzler. Here are the requirements for The CAR Allowance Rebate System (CARS):
- 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.
Consumer Bill of Rights:
- Qualified consumers may participate in the CARS Program between July 1, 2009 and November 1, 2009 or when authorized funds are no longer available.
- Qualified consumers will receive a credit of $3,500 or $4,500 for an eligible trade-in toward the purchase of lease of an approved vehicle under CARS Program.
- Qualified consumers will receive the $3,500 or $4,500 credit at the time the purchase their new vehicle.
- Dealers must provide consumers with any other advertised rebates or discounts in addition to the credit they receive through the CARS Program.
- Consumers should expect to conduct their deals at their dealership of choice, not on the Internet.
- Consumers should expect the dealers to provide their best estimate of the scrap value for their eligible trade-in vehicle. Dealers are allowed to deduct $50 from this value for their administrative costs.
- Consumers should expect that all information collected through the CARS Program will be kept confidential. Social Security numbers are not required for a CARS transaction.
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