Tuesday, July 28, 2009

Cash for Clunkers Car Buying Stimulus Program

For a list of vehicles eligible for the Cash for Clunkers rebate:
Click here to see new vehicles eligible for purchase
Click here to see used vehicles eligible for trade-in

Do I Qualify for the Cash for Clunkers Program?
What Are the Vehicle Requirements?
If my current vehicle is a...Then the new vehicle I buy must be a ...My new vehicle must get at least this mpg (combined)*But also improve the mpg by...The credit I can get is...
Passenger Automobile
  • All passenger cars
Passenger Car22mpg4-9 mpg$3,500
10 mpg or more$4,500
Category 1 Truck18mpg2-4 mpg or more$3,500
5 mpg or more$4,500
Category 1 Truck:†
  • SUVs (Ford Explorer, Honda CR-V, etc.) with a GVWR of less than 8,500 pounds
  • Pickups with a GVWR of less than 8,500 pounds and a wheelbase of 115 inches or less (Ford Ranger, Toyota Tacoma, etc.)
  • Passenger vans and cargo vans with a GVWR of less than 8,500 pounds and wheelbase of 124 inches or less (Dodge Caravan, Toyota Sienna, etc.)
Passenger Car22mpg4-9 mpg$3,500
10 mpg or more$4,500
Category 1 Truck18mpg2-4 mpg$3,500
5 mpg or more$4,500
Category 2 Truck:†
  • Pickups with a GVWR of 8,500 pounds or less and a wheelbase greater than 115 inches (Ford F-150, Chevy Silverado, etc.).
  • Passenger vans and cargo vans with a GVWR of 8,500 pounds or less and a wheelbase greater than 124 inches
Passenger Car22mpg4-9 mpg$3,500
10 mpg or more$4,500
Category 1 Truck18mpg2-4 mpg or more$3,500
5 mpg or more$4,500
Category 2 Truck15mpg1 mpg$3,500
2 mpg or more$4,500
Category 3 Truck:†
  • Trucks, vans, and large SUVs w/ GVWR 8,500-10,000 pounds
Category 2 TruckNA‡NA‡
However, the new vehicle must be similar in size or smaller than the trade-in
$3,500
Category 3 Truck

Basic Eligibility Requirements
Trade-in Vehicle
  • Is in drivable condition
  • Has been registered in your name and insured consistent with State law continuously for at least one year immediately prior to the date you trade in your vehicle under the Cash for Clunkers program
  • Was manufactured less than 25 years before the month you trade in your vehicle (for example, if you trade-in your vehicle any time in August 2009, your trade-in must have been manufactured in August 1984 or after); or, in the case of category 3 trucks, not later than model year 2001
  • Has a combined MPG of 18 or less (this does not apply to category 3 work trucks, i.e., very large pickup trucks and cargo vans)
New Vehicle
(Purchased or Leased)
  • Is new (i.e., legal title has not been transferred to anyone)
  • Has a manufacturer's suggested retail price of $45,000 or less prior to the addition of any options, features, taxes or destination charges

Description of Vehicle Categories

Passenger cars: If the mileage of the new car is between 4 and 9 mpg higher than the old vehicle, the credit will be $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the credit will be $4,500.

Category 1 Trucks: This category consists of sport utility vehicles (SUVs), small and medium pickup trucks, minivans, and small and medium passenger and cargo vans with a GVWR less than or equal to 8,500 lbs.

Small and medium pickup trucks are defined as having a wheelbase less than or equal to 115 inches; and small and medium vans are defined as having a wheelbase less than or equal to 124 inches.

Note that the wheelbase used to determine truck category by the program is the shortest wheelbase for a given nameplate (e.g., Ford F-150) and may not correspond to your vehicle's actual wheelbase, especially in the case of trucks with extended cabs.

Category 2 Truck: These are large pickup trucks such as the Ford F-150 and Toyota Tundra, and large vans such as the Ford Econoline with a GVWR less than or equal to 8,500 lbs.

Large pickup trucks are defined as having a wheelbase greater than 115 inches, and large vans are defined as having a wheelbase greater than 124 inches.

Note that the wheelbase used to determine truck category by the program is the shortest wheelbase for a given nameplate (e.g., Ford F-150) and may not correspond to your vehicle's actual wheelbase, especially in the case of trucks with extended cabs.

Versions of these trucks and vans that earn an EPA combined rating of 15 mpg or better are eligible for a credit.

Category 3 Truck: These are very large vans and heavy-duty work trucks, such as the Ford F-350 and F-450, with a GVWR greater than 8,500 lbs. and less than 10,000 lbs. Under the agreement, consumers can trade in a pre-2002 work truck and receive a credit worth $3,500 for a new work truck in the same or smaller weight class. There is a limited number of these credits. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also "trade down," receiving a $3,500 credit for trading in an older work truck and purchasing a smaller Category 2 truck weighing 8,500 pounds or less.