Cash for Clunkers - Car Allowance Rebate System (CARS) Facts

 

The Car Allowance Rebate System (CARS) bill, better known as the "Cash for Clunkers" bill was signed into legislation on June 24th, 2009.  This is a new program from the government that will help you pay for a new, more fuel efficient car or truck when you trade in a less fuel efficient car or truck, and in return, receive a voucher for either $3,500 or $4,500.  The National Highway Traffic Safety Administration (NHTSA) has 30 days from the signing date to get the program in place, so industry experts estimate that the program will be active in late July.  The Jeff Wyler Automotive Family is a participating Ohio, Kentucky, and Indiana CARS dealer.  If you are looking to use a Cash for Clunkers - Car Allowance Rebate System (CARS) voucher to buy a new car or truck in Cincinnati, Springfield, or Dayton, OH, Louisville, Frankfort, Lexington, or northern KY, or Clarksville, IN -here are the facts as they currently stand:

 

 

 

Summary of Cash for Clunkers Voucher Qualifications

 

 

 

*EPA Combined MPG, **under 6,000 lbs, ***6,000lbs - 8,500 lbs, ****8,500 - 10,000 lbs

 

FAQ about the Bill

 

 

1) Do I need to sign up or get a voucher for the CARS program?
 No.  As a participating dealer, Jeff Wyler will apply a credit towards your purchase or lease, reducing the cost you pay (provided you qualify for the voucher).  Jeff Wyler will later be reimbursed by the government.

 

 

2)  Does the CARS program apply if I want to buy a used car?
 No - only new cars meet the program requirements.  We have a large selection of Cincinnati used cars for your consideration if you want to buy preowned.

 

 

3)  Do I also get the full value of my trade-in vehicle in addition to the CARS voucher?
 No.  The program requires that your trade-in vehicle is destroyed.  So if your trade-in car is worth more than $4500, this program would not be beneficial to you.  Use one of our trade-in valuation tools at our individual dealership sites listed above to get an estimate of what your trade-in is worth.

 

 

4)  How do I determine if my trade-in car or truck is an eligible vehicle for the CARS program?
 There are several requirements, and Jeff Wyler can help you determine if your trade-in qualifies.  Of note, your trade-in vehicle must:
  -Have been manufactured less than 25 years (1984) before the date you trade it in
  -Have a "new" combined city/highway fuel economy of 18 miles per gallon or less (go to http://www.fueleconomy.gov to see)
  -Be in drivable condition
  -Be continuously insured and registered to the same owner for the full year preceding the trade-in date
  -The trade-in must have been manufactured not earlier than 25 years before the trade-in date. (Category 3 vehicles must have been manufactured not later than model year 2001).  Note tht work trucks and large pickup trucks and cargo vans have different requirements.

 

 

5)  How do I know when my trade-in vehicle was manufactured?
 If you look on the frame or the edge of the driver's door for most vehicles, you will see the month and year of manufacturer on the safey certification label.

 

6)  How do I find out the combined city/highway fuel economy rating of my trade-in vehicle?  The new vehicle I am considering?
 Go to http://www.fueleconomy.gov and select the year/make/model of the vehicle in question, as well as the engine size and transmission type.  You will see the combined fuel economy rating under the words "Estimated New EPA MPG" in the red banner.

 

 

7)  Does the CARS program apply if I want to lease a vehicle instead of buy?
 Yes, you may lease a new, qualifying vehicle with the CARS program provided the lease period is at least for 5 years.

 

 

8)  Is there a cap on the vehicle I purchase or lease with the voucher?
 Yes, the MSRP can not exceed $45,000.

 

 

9)  What is the amount of the credit?
 The amount of the credit is either $3500 or $4500, depending on the type of vehicle you purchase and the difference in fuel economy between the new vehicle and the vehicle you trade-in.

 

 

10)  Does the CARS program only apply towards the purchase/lease of new American vehicles?
 No.  You may trade-in or buy a new foreign or domestic vehicle.

 

 

11)  I cannot find the fuel economy rating for my trade-in truck.  How do I know if it is eligible?
 The answer is maybe.  Some trucks (eg. work trucks) were never rated for fuel economy.  For these trucks, age is the only criteria for determining whether they are eligible for the CARS voucher.  If you have one of these trucks, it must be from model year 2001 or earlier, with the date of manufacturer being less than 25 years from the date you trade it in.  Other restrictions may apply.

 

 

12)  I recently traded-in my vehicle and bought a new one.  Will I get some money back now?
 No, the CARS program is not retroactive.

 

 

13)  Is the CARS credit treated as income for Federal tax purposes?
 No.  The CARS Act specifically provides that the credit is NOT income for the consumer - however, it is considered income for Jeff Wyler.

 

 

14)  How do I determine whether my trade-in, and/or the vehicle I want, is a passenger automobile or a category 1, 2, or 3 truck?
 A passenger automobile is a vehicle manufactured primarily for transporting people (so trucks do not apply, as well as some vans designed for hauling cargo).  NHTSA has some more requirements on what defines a passenger vehicle at http://www.cars.gov.  A category 1 truck is a nonpassenger automobile, including SUVs, small and medium pickup trucks, and small and medium passenger and cargo vans.  A category 2 truck is a large van or large pickup truck, based upon the length of the wheelbase (more than 115 inches for pickup trucks and more than 124 inches for vans).  Note that some pickup trucks and cargo vans exceeding these thresholds are treated as category 3 trucks.  A category 3 truck is a work truck and is rated between 8500 and 10000 lbs gross vehicle weight, and includes very large pickup trucks with cargo beds more than 72 inches in length.

 

 

15)  Can I use the credit in combination with manufacturer rebates or incentives?
 Yes! The CARS credit is independent of other programs offered by the manufacturer.

 

 

16)  Can I combine the CARS credit with other government incentives?
 Yes, you can combine this with other State and Federal incentives, such as the Federal hybrid vehicle credit.

 

 

17)  May I receive more than one CARS credit?
 No, only one CARS credit may be issued to a single person. Not more than 1 credit may be issued for joint registered owners of a single eligible trade-in vehicle, and only one credit may be applied towards the purchase/lease of a new vehicle.

 

 

18)  What do I need to bring with me to the Jeff Wyler dealership?
 You will need to bring your documentation establishing your identity as the owner of the vehicle.  License, registration, proof of insurance, and preferably, the title of your trade-in.

 

 

19)  What happens to my trade-in vehicle?
 The Car Allowance Rebate System (Cash for Clunkers) act requires that the trade-in vehicle be crushed or shredded so that it is not resold for use as an automobile.