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Uncle Sam to Help with Replacing Your Gas Guzzler

June 23, 2009 | Financial Tips | No Comments
cars

Now maybe a great time to buy a car, especially if your current vehicle is a gas guzzler.  President Obama is about to sign into law a program called the Car Allowance Rebate System (CARS) to help consumers purchase a new, more fuel efficient vehicle when they trade in their less fuel efficient vehicle.  The government incentive could save you up to $4,500 to purchase a new car.

To qualify, your vehicle must be less than 25 years old on the date of trade-in and you can only purchase a new or leased vehicle costing less than $45,000. Your trade-in vehicle must have 18 MPG or less, however, some very large pick-up trucks and cargo vans may have different requirements. To find out your vehicle’s official MPG, visit www.fueleconomy.gov.  Additionally, your trade-in vehicle must be registered and insured continuously for the full year preceding the trade-in.  You will not need a voucher because dealers will automatically apply the credit at the time of purchase.  To find the trade-in value of your vehicle visit Autos.MSN.com.

How Will CARS Work?  According the website Cars.gov:

  • Step 1: Visit CARS.gov for current information about the program.
  • Step 2: Determine if you qualify, then shop for a new car.
  • Step 3: Bring the title, registration and insurance papers showing continuous registration and insurance coverage for the past full year.
  • Step 4: When you buy or lease a new vehicle, the dealer handles the submission of all required information to NHTSA (National Highway Traffic Safety Administration).
  • Step 5: NHTSA ensures that your purchase meets the requirements.
  • Step 6: About 10 days later, NHTSA will issue a financial credit to the dealer.

 

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