This is a new program scheduled to roll out around July 24 designed to make leasing or purchasing a new car more affordable for those with an older model car.

Here are the requirements:

·         Your vehicle must be less than 25 years old on the trade-in date and have a dealer trade in value of less than $4,500.  

·         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.

·         You may trade in a domestic or foreign vehicle.

If you qualify to participate in the cars program, you need to go to a participating dealer where the following will be verified:

·         The trade-in car is in drivable condition

·         You are the registered owner, and have been for at least the last year (you will need proof of registration which the DMV can provide)

·         The car has been continuously insured for the last year (you will need proof your car has been insured)

·         The car is titled in your name and has been for the last year (you can not have a loan on the vehicle)

·         You have not previously participated in the CARS program

You get $3,500 if you qualify for the above stipulations and $4,500 if you qualify for the above stipulations AND your new car gets 10 MPG better mileage than your clunker.

Frequently Asked Questions

 To see if your car qualifies check the NADA website.

Source: www.cars.gov