Cash for Clunkers

Congress has passed legislation that would give car buyers a $3,500 or $4,500 voucher for trading in an old, inefficient vehicle for a new, more-efficient one between July 1 and November 1, 2009!

Current StatusFriday, June 19, 2009, 1:30 p.m.

The "Cash for Clunkers" legislation has passed the House and Senate and is waiting to be signed into law by the President.

Does My Clunker Qualify?

To qualify, your trade-in vehicle must:
Be in driveable condition
Have been continuously insured consistent with State laws and registered to you for at least one year immediately prior to trade-in
Be manufactured less than 25 years before the date of the trade-in
Have a combined MPG of 18 or less (this does not apply to category 3 trucks---defined below)
MPG requirements for 1985 model year vehicles and newer are based on the Combined "New EPA MPG"

How Much Cash Can I Get?

The incentive amount depends upon the kind of vehicle you want to purchase, its MPG relative to your trade-in vehicle, and in some cases, the kind of vehicle you are trading in.
In addition to the above requirements, the purchased vehicle must:
Be new (i.e., legal title has not been transferred to anyone)
Have a manufacturer's suggested retail price is $45,000 or less

Information from www.fueleconomy.gov