The Cash for Clunkers program goes by many names. According to cars.gov, the new official name of the program is the Car Allowance Rebate System, or CARS. Many Americans still refer to it as Cash for Clunkers or even Cash for Guzzlers.
Despite the confusion surrounding the program's actual name, the rules have always been the same and should be referenced on the Cars Allowance Rebate System official website, cars.gov. See below for eleven rules for this stimulus program and links to more information.
Obama New Car Stimulus – $3,500 & $4,500 Vehicle Purchase Credits
The basics of the Cash for Clunkers program are covered in the articles Cash for Clunkers Rules – Obama New Car Stimulus and United States Cash for Clunkers Program Details.
U.S. Government Voucher Program for 2009 Automobile Purchases
Here are 10 more facts from the Consumer Assistance to Recycle and Save Act that may be of interest to Americans:
- The National Highway Traffic Safety Administration (NHTSA) will administer this program.
- Participation is completely voluntary.
- Once an official process is implemented, dealers should be reimbursed for vouchers within 10 days of submitting valid paperwork.
- Total program cost: $1 billion. Cumulative value of vouchers issued cannot exceed $1B less the cost of administering the program.
- Cost of administering the program is capped at $50 million.
- At a participating dealership, an individual can use the voucher amount as a down payment toward a 2009 automobile purchase.
- The program limits the use of vouchers toward the purchase of category 3 trucks. Only up to 7.5 percent of the program’s funds can be used for these vehicles.
- This government voucher program is not retroactive.
- The rules for work trucks vary from the rules for cars and light trucks.
- Leased vehicles qualify for vouchers if the lease period is five years or more.
Car Allowance Rebate System Goals
Another key aspect to the CARS program is that all old vehicles traded in exchange for $3,500 and $4,500 credits will be destroyed so they can never be used on the road again in the United States or anywhere else.
Among other information, the government will keep track of all new fuel-efficient vehicle purchases and trade-ins by make and model. Once the program has ended and all the data has been compiled, consumers can expect the government to estimate annual oil savings, increased fuel efficiency, and greenhouse gas reductions resulting from the program.
3500 and 4500 Auto Vouchers, Federal Tax Rebates, Vehicle Credits
As consumers evaluate their eligibility for this stimulus measure, they should keep in mind that savings from the Cash for Clunkers program can be combined with other federal government auto incentives, including the hybrid vehicle tax credit and new car tax rebate. Read more about the ability to combine incentives in the article Government Car Rebate- $3,500 or $4,500 Voucher.
Resources:
Car Allowance Rebate System Website, cars.gov
Consumer Assistance to Recycle and Save Act of 2009
Lena Gott - Lena Gott is a Certified Public Accountant who gives practical financial advice to her readers.
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