The Car Allowance Rebate System (CARS) details
President Obama will sign into law a program NHTSA is calling the Car Allowance Rebate System (CARS). This is a government program that helps you purchase a new, more fuel efficient vehicle when you trade in a less fuel efficient vehicle. This also used to be known as the more fun “Cash for Clunkers” program.
There are five important areas to be aware of:
Your vehicle must be less than 25 years old on the trade-in date
Only purchase or lease of new vehicles qualify
Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
You don’t need a voucher, dealers will apply a credit at purchase
For much more information, the U.S. Department of Transportation has setup a website at www.cars.gov.
Steve Trojan, CPA
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