The public will be able to take advantage of this program and receive a $3,500 or $4,500 discount from the car dealer when they trade in their old gas hog and purchase or lease a new more fuel-efficient one.

The U.S. Department of Transportation’s National Highway Traffic and Safety Administration have released the final eligibility requirements for the Car Allowance Rebate System (CARS).

Consumers will have the option to participate in the CARS Program between August 1, 2009 and Novmber 1, 2009 or until the funds run out.

·         Qualified consumers will receive the $3,500 or $4,500 credit at the time they purchase their new vehicle.

·         Dealers must provide consumers with any other advertised rebates or discounts in addition to the credit they receive through the CARS Program.

·         The CARS Program will only be available at the local dealership and not on the internet.

·         The dealership will be required to supply the buyer with the best estimate of the scrap value for their eligible trade-in vehicle. Dealers will be allowed to deduct $50 from this value for their administrative costs.

·         Social Security numbers are not required for a CARS Program transaction

How the CARS Program Works:

Owners of cars getting no more than 18mpg are permitted for a $3,500 voucher toward the purchase of a new car getting at least 22mpg. If the new car gets 10mpg or better mileage than the trade-in clunker, then the owner will receive a $4,500 discount. That’s for cars.

Light-trucks, Minivans, SUV’s and Pickups getting 18 MPG or less will qualify for $3,500 credit toward the new fuel-efficient vehicle.

All trade-in clunkers must be crushed and shredded by the dealer. Eligible trade-ins must be 1984 models or later. Many cars that qualify as Antiques – 25 years or older – may be lost in the crushed and shredded part of the CARS Program.