Cash for Clunkers Requirements Change
CARS Program Rules Updated for $3,500 or $4,500 Government Vouchers
Aug 3, 2009
In late July 2009, the National Highway Traffic Safety Administration (NHTSA) changed three Car Allowance Rebate System (CARS) program rules. One of the changes is relevant to consumers; the other two relate to dealer requirements for disabling engines and procedures for locating disposal facilities and salvage auctions.
This article discusses how the recent rule change impacts residents of New Hampshire and Wisconsin and provides links to several informative Cash for Clunkers articles.
Cash for Clunkers Requirements Change
According to the NHTSA, “In those states with no insurance requirement, the rule’s requirement unfairly penalizes consumers who are in compliance with state law.” Therefore, the amended rule “exempts trade-in vehicles registered in New Hampshire and Wisconsin from the one-year insurance requirements because both New Hampshire and Wisconsin have no insurance requirement under state law.”
This is good news for residents in those two states who carry no car insurance but want to take advantage of the Cash for Clunkers program; however, the rule amendment may have come just as CARS program funds ran out. On Thursday, July 30, 2009, rumors circulated that the program was in danger of running out of funds. Then on Friday, July 31, 2009, the United States House of Representatives approved an additional two billion dollars in funding. The additional funding bill has not yet been approved by the Senate.
Basic CARS Program Rules Remain Unchanged
The rest of the rules previously published in the Final Rule (available on cars.gov) have not changed. Consumers interested in receiving government vouchers should still verify that they have an eligible trade-in vehicle, find a new vehicle that qualifies, locate a participating dealer, and take all required information with them to the dealership.
What Cars Qualify for 3500 & 4500 Government Vouchers – Fueleconomy.gov
The United States government has provided an easy-to-use online guide for consumers to use in determining whether a trade-in or new vehicle qualifies for the Cash for Clunkers program. In the article What Cars Qualify for 3500 & 4500 Auto Rebates, consumers can learn how to use the CARS Vehicle Eligibility Guide on fueleconomy.gov.
U.S. Cash for Clunkers Requirements – Registration and Insurance Documentation
The article U.S. Federal Government Cash for Clunkers Tips explains what types of documentation car owners will be asked to provide in order to participate in the CARS program. Participating dealers should ask for proof of vehicle insurance (except in New Hampshire and Wisconsin, as noted above) and state registration. Owners may also have to provide proof of ownership and identity (in order to guard against fraudulent transactions and any one person receiving multiple federal government vouchers).
Get United States Cash for Clunkers Requirements on cars.gov
Consumers can find everything they need to know about the Cash for Clunkers requirements on the official Car Allowance Rebate System website, cars.gov. As the Cash for Clunkers program requirements are updated, consumers can expect cars.gov to be updated with pertinent information.
Resources:
Car Allowance Rebate System website, cars.gov
Consumer Assistance to Recycle and Save Act of 2009
House Approves $2B More for ‘Cash for Clunkers’ retrieved from Yahoo! News (news.yahoo.com) on July 31, 2009.
Requirements and Procedures for Consumer Assistance to Recycle and Save Program (“the Amendment”) retrieved from cars.gov on August 2, 2009.
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