Cash for Your Used Car
By: Joanne | June 30, 2009 | Category: Money
Last week President Obama signed the Consumer Assistance to Recycle and Save Act of 2009 into law. The new Car Allowance Rebate System (CARS) program offers cash to people who own old, fuel inefficient cars to help them buy new, fuel efficient cars.
Sounds interesting? You bet. Who doesn’t want to spend less money on gas, reduce greenhouse gas emissions, reduce our dependency on oil and increase energy sustainability AND get a shiny new car in the deal?
How does it work? Now that it’s a law, program details are available. Here are some quick facts – visit cars.gov for more details.
- The amount of the credit is $3,500 or $4,500 depending on what you trade in and what you buy
- Your car must be less than 25 years old
- You must buy or lease a new car
- Generally, your trade-in must get 18 or less miles per gallon (some very large pick-up trucks and cargo vans have different requirements)
- Your trade-in must be registered and insured continuously for the full year before 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 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.
Watch out, I’ve already heard reports that fraudulent websites have popped up, pretending to offer information about the CARS program but they’re really phishing for your personal information. Stick with the official CARS website for official program information.
p.s. Don't forget to submit your Independence Day photos on the USA.gov and GobiernoUSA.gov Flickr Group
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