Cash for Clunkers: Requirements

The Cash for Clunkers program allows consumers to purchase a new car at a lower price. Consumers willing to trade in a old car can receive a $3500 or $4500 discount from the government towards the purchase of a new vehicle. Taking advantage of the government program will allow you to purchase a car at a much lower price. Unfortunately, people many people will not qualify for the program. Those interested in seeing if they qualify, must meet the requirements below.

Vehicle Year

The vehicle being traded in must be less than 25 years old. Vehicles such as a 1970 Ford F150 will not qualify for the program. Cars such as a 1997 Jeep Grand Cherokee 4WD will qualify, given they are less than 25 years old.

Fuel MPG

Vehicles with an average miles per gallon (mpg) greater than 18, will not qualify in the cash for clunkers program. Cars with an average of 18 mpg and less qualify for the rebate of $3500 or $4500. Whether or not you get the $3500 or $4500 rebate, is based upon the mpg difference of the original car and the new one. A new car with a mpg of 5 and greater than the trade-in, will reward you with $3500. The purchase of a new vehicle with 10 mpg or greater than the trade-in will give you a $4500 rebate.

SUV and truck purchases have lower requirements than cars. Buyers looking to purchase a new truck or SUV with 2 mpg and greater than the previous model, will result in a $3500 rebate. A truck or SUV with a fuel economy of 5 mpg and greater, receive the $4500 rebate.

You can view your vehicles average MPG by viewing the government fuel economy website.

Price of the New Car

Cars priced with a MSRP greater than $45,000 will not qualify for the government program.

Condition of the Vehicle

The car must be drivable otherwise it will not meet the program requirements. Holes in the seats and exterior dents will not prevent you from taking advantage of the program. The only requirement is that your vehicle can get from point A to point B.

Insured

The car must have been insured for at least one year from the date of the trade-in. Cars that were once insured, but are no longer insured, will not qualify for the program.

The requirements for the discount are strict, and those looking to beat the rules will find it impossible. If you find yourself looking to trade-in your clunker, you should do it soon. The first billion dollars has already ran out within 6 days, and the additional 2 billion dollars added July 31st, will not last long much longer.

Source:
Car Allowance Rebate System - Cars.gov