1. What is the goal of the Cash for Clunkers program?
The Cash for Clunkers program provides cash incentives that encourage car owners to trade in older, less fuel-efficient vehicles for newer, more fuel-efficient ones. The program will benefit American consumers, stimulate showroom traffic and auto sales, and help reduce fuel use and vehicle emissions. New vehicles are cleaner, more fuel efficient and have many safety technologies not available in older ones.
2. How does the Cash for Clunkers program work?
An owner of a passenger car, minivan, SUV, or pick-up truck that gets an EPA combined 18 mpg or less can trade it in for a government electronic voucher toward the purchase of a new vehicle. The amount of the voucher is either $3,500 or $4,500, depending on the mpg improvement of the new vehicle over the one it replaces. It is substantially easier for vehicles classified as trucks (including SUVs, minivans, and pickups) to received the $4,500 voucher than for other passenger vehicles.
3. What older vehicles are eligible for the program?
The vehicle being traded in must have been manufactured fewer than 25 years before the date of the trade-in. Antique car collectors and hobbyists asked that vehicles more than 25 years old be ineligible. Most importantly, the trade-in vehicle must have a combined (city/hwy.) fuel economy rating of 18 mpg or less.
4. Are there other restrictions, such as length of ownership?
The trade-in vehicle must be in drivable condition and have been continuously insured and registered to the same owner for at least one year immediately prior to the trade-in.
5. Does the consumer get the trade-in value of the vehicle in addition to the government voucher?
No. The voucher value is in lieu of the trade-in value. Consumers should choose whichever option benefits them the most.
6. Is there a price cap on the vehicles eligible for purchase with the electronic voucher?
Yes, the price cap on the vehicle is $45,000 (MSRP).
7. Is the value of the voucher tax-free to the consumer?
Yes.
8. Is there an income limit that disqualifies certain vehicle owners?
No.
9. What are the fuel economy requirements for the new vehicle?
For Passenger Cars:
At least 22 mpg (combined) AND
4-9 mpg improvement over trade-in vehicle, $3,500
At least 10 mpg improvement over trade-in vehicle, $4,500
For SUVs, Minivans and Light-Duty Trucks (< 6,000 lbs.):
At least 18 mpg (combined) AND
2-4 mpg improvement over trade-in vehicle, $3,500
At least 5 mpg improvement over trade-in vehicle, $4,500
10. How long will the program last?
The program will be in effect through October 31, 2009 or until the initial $1 billion in federal funding for the vouchers runs out, whichever occurs earlier. It is uncertain whether Congress will approve additional funding to extend the program beyond October 31.
11. Are lease vehicles included in the program?
Vehicles may be leased using the voucher, but only if the lease term is 5 years or longer.
12. Can a customer trade-in two clunkers and combine two vouchers towards the purchase of a new Mazda?
No. Only one voucher may be applied toward the purchase of a single vehicle.
13. Can an individual obtain more than one voucher?
No, each individual and each trade-in vehicle is eligible for only one voucher.
14. How can I determine the current combined mpg on my vehicle?
Consumers can check the combined fuel economy ratings onwww.fueleconomy.gov or www.cars.gov.
