What is the Car Allowance Rebate System? Click here Calculate Your Voucher Value
President Obama signed into law a program NHTSA is calling the Car Allowance Rebate System (CARS). This is a government program that helps you purchase a new, more fuel efficient vehicle when you trade in a less fuel efficient vehicle. This program will probably take effect in late July or early August and is not retroactive for previous purchases. Following is how we THINK this rebate will work. This document is for informational purposes only and is not definitive or binding.
How will CARS work?
Step 1
Visit www.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. You will only receive the CARS credit. You will not receive any other allowance for your “clunker.”
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—assuming all program requirements have been met.
Important Things to Know
- Your vehicle must be less than 25 years old on the trade-in date
- Only purchase or lease of new vehicles with an MSRP of $45,000 or less will qualify
- Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
- Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
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