| President Obama signed the Car Allowance | | | | your car must be less than 25 years old. You |
| Rebate System program, which is better known | | | | must have owned, registered and insured it for a |
| as CARS. The program is being renamed the | | | | minimum of one continuous year. It must be in |
| Cash for Clunkers program in the media because | | | | drivable condition. It must get less than 18 miles |
| of its intended purpose. In this article, we take a | | | | to the gallon when city and highway mileage is |
| look at the rules for the program. | | | | combined. The new car you are buying cannot |
| The Cash for Clunkers program is designed to | | | | cost more than $45,000. |
| help people buy a new, fuel efficient car by | | | | The interesting thing about the Cash for Clunkers |
| trading in an old clunker that gets poor mileage. | | | | program is the trade in value of your old clunker. |
| This goal is achieved by providing a rebate on the | | | | You cannot look to Kelly's Blue Book or some |
| new car purchase at a dealer. The rebate is not in | | | | other independent source for the valuation. Why? |
| addition to any trade-in value for your old car, but | | | | Well, it has to do with what is going to happen to |
| a replacement for that trade in. The total amount | | | | your old car or truck. When it is traded in, the |
| is no more than $4,500. | | | | dealer will not fix it up and resell it. Instead, the |
| The Cash for Clunkers program does not apply to | | | | law requires that the car be destroyed. As a |
| every possible old clunker. Nope. We are talking | | | | result, the dealer is only going to offer you a |
| about a government act, so you know there are | | | | trade in value that is equal to the scrap price of |
| going to be a host of rules. Actually, they are not | | | | your vehicle. |
| too bad in this case. To qualify for the program, | | | | |