Car Buying Tips
Cash for Clunkers/CARS
PrintCash for Clunkers/Car Allowance Rebate System (CARS)
The Car Allowance Rebate System (CARS), also known as Cash for Clunkers, was a government program to get older, less fuel-efficient vehicles off the road. The federal government allocated $3 billion to provide new car buyers with special incentives of $3500 or $4500 when they traded in certain used vehicles for qualifying new vehicles.
Frequently Asked QuestionsQ: How do I find out the combined city/highway fuel economy rating of my trade-in vehicle?
A. Go to fueleconomy.gov’s side by side vehicle comparison and click on the model year of the vehicle, the make, and then the model. Under the words “ESTIMATED NEW EPA MPG” in the red banner, there is a red number with the word “COMBINED” under it. That is the new combined city/highway fuel economy for the vehicle.
Q: What did the dealer do with my old car?
A: The trade-in car cannot be resold, so the dealer will dispose of it, and certain parts will be crushed or shredded.
Q. Can the dealer charge me a fee for disposing of my car?
A. Yes, the law allows the dealer to charge you up to $50 for giving you the best estimate of the scrappage value for the old vehicle. This estimate is required.
Q. Could I trade in more than one old vehicle and receive double the credit?
A. No. The program is limited to one credit per person per vehicle. In addition, only one credit may be issued for the joint registered owners of a single eligible trade-in vehicle.
Q. Is the credit considered taxable?
A. No. The law specifically exempts the credit from taxation.
Q. What are the penalties for violating the terms of the program?
A. Any person who commits a violation is subject to civil penalties of as much as $15,000 per violation.
WPIX interviewed GNYADA President Mark Schienberg about Cash for Clunkers on July 29. To see the interview and get more information about this program that helps consumers purchase new, fuel-efficient vehicles, click here.
