Categorized | Economy, Environment, News, Politics

Cash For Cars Voucher

A lot of my friends have been asking me questions about the Car Allowance Rebate System (CARS) voucher. So after getting tired of answering their queries n number of times, I decided I will write a post about it and send them a link to this page so that they can read about it to their heart’s content. If you have friends with similar quandary, it might help to send them this link as well.

In this page, basically I will try to make it as simple as possible following the FAQ style specifically to clear the concept of “Voucher”. Most people when they hear this word, what actually registers in their mind is “free”. That’s what they equate voucher with but in this case its not true.

How do I get a CARS voucher?

The first thing you need to keep in mind is that CARS program will not be issuing a physical voucher. So what this means is you will not be getting any piece of paper.

Consider your old jalopy or “clunker” as the real world “voucher” in this case. If your old car on which you want to get the rebate qualifies as a clunker, then the clunker money rebate qualifies as your down payment. Your dealer will be qualifying this as a rebate the moment you buy the new car.

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What do I need when I go to the dealer?

Some very basic things which you would be doing anyway, clunker or no clunker. Remember to bring your title, registration, insurance card and a drivers license. Now what I am going to tell you is straight from the Car.Gov website as of June 27, 2009:

* have been manufactured less than 25 years before the date you trade it in
* have a “new” combined city/highway fuel economy of 18 miles per gallon or less
* be in drivable condition
* be continuously insured and registered to the same owner for the full year preceding the trade-in
* The trade-in vehicle must have been manufactured not earlier than 25 years before the date of trade in and, in the case of a category 3 vehicle, must also have been manufactured not later than model year 2001

What if I owe money on my clunker?

Just like any trade-in transaction, your local dealer will assist you with your financing options so that the clunker can be paid off and the title released. The goverment CARS program does not get involved in the financing of your new car purchase.

How do I know if my local car dealer is registered in the program?

I have included an excerpt from the official website:

NHTSA is working to create a system that will provide payments only for eligible transactions under the CARS program. Under the law, NHTSA will make electronic funds transfers only to a registered dealer that has submitted the required proof of a completely eligible transaction.

We will develop a registration system to identify licensed, franchised new vehicle dealers and to obtain the banking and tax identification information necessary for making secure electronic transfers. Only registered dealers will have access to the payment system.

As duly pointed above, at the time of the car transaction, the car buyer who is trading in the “trade-in vehicle” will have to show evidence of ownership of the vehicle and proof that the vehicle has been continuously registered and insured to the same person throughout the last 12 months.

If you still have more questions, as I presume you will, I want you to write them below for the benefit of other users as well. I will choose the most relevant questions and update the article to provide the answer for the same.

Make sure your Car Insurance company is not ripping you off. Get an appraisal by clicking here.

    12 Responses to “Cash For Cars Voucher”

    1. Robert Jenkins says:

      I’ve read the language in this legislation that denotes something to the effect of “insured and registered by the laws of the state.” Wisconsin does NOT require mandatory insurance and is one of only a couple states that do so.

      I do not keep coverage on my car but rather keep a good deal of money on hand to cover anything I may cause. Mind you, I drive very infrequently and only in the city where the average speed limit is 25-30. Is it a gamble to not carry insurance? Yes. Getting insurance is also gambling.

      Anyway, 5 years later from my last coverage I have not had any problems other than now: I cannot show that my car was covered the last year despite paying $2500+ for a Transmission overhaul around 7 months ago.

      Due to the fact Wisconsin is unique, does the proof of insurance still apply or does it fall to “as defined by state law”.

    2. Laura says:

      How long do we have to take advantage of the opportunity?

    3. William says:

      can you trade two cars at once? do you get the gov’t money on top of any trade in?

      thanks for the post.


    4. I can highly agree with your post and i believe this is something worth knowing. I hope you give this team a chance to know how they can help you.

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