Cash for Clunkers
Cash for Clunkers, is a federal program passed by Congress and expected to be signed into law by President Obama. The program would encourage consumers to trade in older, less fuel efficient vehicles for new vehicles that get better fuel economy by providing vouchers worth up to $4,500. Modeled after several programs that have already been successfully implemented in Europe, the program is expected to be implemented in early August and run through October.

Though final details of the program have yet to be established, below are broad aspects of the Cash for Clunkers program as we know them today. The program would offer vouchers that allow consumers to save from $3,500 to $4,500 on a new-car purchase, and there are also various credits for trucks and work trucks.

The only Officially AUTHORIZED SITE for the Vouchers is www.CARS.gov.

One other site the we highly recommend is www.LetFordRecycleYourRide.com

Cash for Clunkers At a Glance

Consumers who have owned and operated an older car for at least one year may trade in their vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel-efficient cars and trucks. The program is expected to run through October and divides cars, trucks, SUVs and minivans into several categories. Vehicles that are traded in are to be crushed, not resold, and the sticker price of the replacement vehicle they purchase is not to exceed $45,000. Miles-per-gallon figures below refer to EPA "window sticker" values.

Passenger cars: The old car you would like to trade in must have been manufactured in 1984 or later, and must get 18 mpg or less city/highway combined. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.

SUVs, pickups, and minivans: The old vehicle you would like to trade in must have been made in 1984 or later, owned, insured and operated by you for one year, and must get 18 mpg or less city/highway combined. If the mileage of the new vehicle is at least 2 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 5 mpg higher than the old vehicle, the voucher will be worth $4,500.

Large light-duty truck: New large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.

Work truck: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pickup truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class' market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also "trade down," receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000-8,500 pounds.