President Obama on June 24 signed the military funding bill that included the $1-billion Cash for Clunkers legislation.
The name of the program is the Car Allowance Rebate System (CARS). It will offer motorists the opportunity to trade in their vehicles for a credit worth up to $4,500 to help them purchase a more environmentally friendly and fuel-efficient model.
The National Highway Traffic Safety Administration (NHTSA) has 30 days to create rules to implement Cash for Clunkers, which also has been referred to as a fleet-modernization program.
Preliminary rules posted on the NHTSA’s Cash for Clunkers Web site, www.cars.gov, indicate that the vehicle must be less than 25 years old on the trade-in date; that only the purchase or lease of new vehicles qualify; that trade-in cars must get 18 mpg or less (some large pick-up trucks and cargo vans have different requirements); that trade-in vehicles must be registered and insured continuously for one full year preceding the trade-in; and that consumers won’t need a voucher because dealers will apply a credit at purchase.
The federal government already has issued a warning to those who may be considering the Cash for Clunkers program. NHTSA said stay away from Web sites that ask for your social security number, address and other personal information to pre-register for the program. No registration is necessary and the official Web site is www.cars.gov.
