Cash for Clunker Car Rebate System Basics

After a "wildly successful run," U.S. Transportation Secretary Ray LaHood announced that the cash for clunkers program will end as of Monday, August 24th at 8 p.m. EST.

The Car Allowance Rebate System (commonly referred to as Cash for Clunkers) has undoubtedly been a huge success on many fronts. Auto showrooms were filled with buyers which in turn helped revitalize manufacturing plants. General Motors and Ford both experienced depleted automotive inventory and as a result of Cash for Clunkers they have ramped up production, adding shifts and rehiring laid off workers. Consumers turned in gas guzzlers in exchange for a vehicle with improved gas mileage. The $3500-$4500 rebate helped consumers purchase new cars which in turn provided the environmental benefit of reduced emissions.

According to the CARS.gov website, most consumers have turned in trucks and SUV’s in exchange for passenger cars, with about 60% improved gas mileage.

“It’s been a thrill to be part of the best economic news story in America,” Secretary LaHood said.

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If there was ever a time to scrap the ol' gas guzzler it's NOW!
Signed into law by President Obama on June 24, 2009, the Car Allowance Rebate System (CARS), commonly referred to as Cash for Clunkers, offers used car, SUV, truck and van owners clunker car rebates to trade in their used gas guzzler for more fuel-efficient new vehicle.

The bigger the gap between the old and the new car's fuel efficiency, the larger the clunker car rebates. With incentives worth $3,500 to $4,500, the clunker car rebate is deducted from the sticker price of your new vehicle purchase - whether you choose to buy or lease your new cars, SUVs, trucks or vans. Take a closer look at more Cash for Clunkers Facts

The National Highway Traffic Safety Administration (NHTSA) is managing the clunker stimulus program and has created the Cash for Clunkers official site CARS.gov to provide consumers with detailed information about the program.

While car rebates top out at $4,500, Cash for Clunkers car sale deals are better than that because Chevy, Buick, Pontiac, GMC, Chrysler, Dodge, and other automakers are offering additional incentives. So GMC Cash for clunkers or Chrysler clunkers actually offers even larger rebates.

General Motors recently announced their new zero-percent financing program to further stimulate GM showroom car sales created by GMC Cash for Clunkers program. The new GM program, provides no-interest financing for up to 72 months and runs through August 31. To be eligible for the program, the car sale deal must be completed under the GMC Cash for Clunkers program.

Not sure whether your vehicle qualifies for the Clunker Stimulus?

Here are some key Cash for Clunkers criteria (Courtesy of the government’s Cash for Clunkers official site CARS.gov):

General Cash for Clunkers criteria:
• The program is set to run until November 1st or until clunker stimulus funding runs out so used car, SUV, truck and van owners should act fast.
• Clunker stimulus consumers who want to purchase a new vehicle not available on a dealer lot would still be eligible for the Cash for Clunkers car sales program if they ordered it from the manufacturer (Transportation Department announcement, Thursday August 13, 2009).
• Used car purchases are not covered. Only purchase or lease of new vehicles qualify.
• You don’t need a voucher, auto dealers will apply a credit at purchase.
• 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.

Trade-in vehicle Cash for Clunkers criteria:
• Your car, pickup, suv, minivan or truck clunker must be a 1984 model or newer to be eligible.
• Program-eligible clunkers must have a combined city/highway fuel economy of 18 miles per gallon or less - based on the "Estimated New EPA MPG" ratings available at fueleconomy.gov.
• Your clunker must be in drivable condition, insured and licensed to you for at least a full year preceding the trade-in.
• The Cash for Clinkers car sales plan calls for exchanging a used vehicle that is at least 8 years old for a new car.

New vehicle Cash for Clunkers criteria:
• Your new American or foreign made car, SUV, van or truck must be a new vehicle
• Program-eligible new cars must meet improved mileage requirements as specified for each type of vehicle
• Your new car, SUV, van or truck must have a retail price no higher than $45,000
• You must purchase or lease your new vehicle for at least five years.

When you bring in your eligible trade-in vehicle be sure to have the title, registration and insurance papers with you that show continuous registration and insurance coverage for the past full year.

For more information on the Clunker stimulus program, go to Cash for Clunkers official site www.cars.gov.

Lynch Superstore in Burlington, WI has met the requirements set by the NHTSA and as a participating dealer in the Cash for Clunkers car sales program we'll handle the entire transaction for you! Bring us your program-eligible clunker and drive home in a new Chevy, Buick, GMC or Pontiac vehicle.

What clunker car rebate amount will you receive?

Whether you're looking to purchase or lease a new car, van, suv or pickup truck, the applied clunker stimulus amount toward your purchase depends on the type of new vehicle you choose and the difference in fuel economy compared to your trade-in used vehicle. Think "green" - the better the mileage of the new vehicle over your old one, the better the incentive.

According to the Cash for Clunkers official site, owners looking to trade-in clunker passenger cars, can get $3,500 of clunker car rebate if the new vehicle has a combined fuel economy that is at least 4mpg, but less than 10mpg, higher than the traded-in. If the new vehicle has a combined fuel economy value that is at least 10 miles per gallon higher than the traded-in vehicle, the credit is $4,500.

For SUVs, pickup trucks or minivans, consumers can get $3,500 clunker car rebate if the new vehicle gets at least 2mpg higher than the old vehicle and $4,500 if the new vehicle gets at least 5mpg higher than the trade-in.

Lynch Superstore has met the requirements set forth by the NHTSA and as a participating dealer in the Cash for Clunkers car sales program we'll handle the entire voucher transaction and credit toward the purchase price of your new vehicle. Bring us your program-eligible clunker and drive home in a new Chevy, Buick, GMC or Pontiac car, pickup, truck, minivan or SUV.