Cash for Clunkers Rules – Obama New Car Stimulus
Cash Incentives for 2009 Vehicle Purchases – U.S. Government Program
Jun 27, 2009
Although the United States federal government hasn’t published many Cash for Clunkers program details in plain language for the average consumer (and isn’t required to until 30 days after the bill’s enactment), the text of the Consumer Assistance to Recycle and Save Act is available for public review.
The text can be accessed through the Library of Congress Thomas research function or on the official government website for the Car Allowance Rebate System program, cars.gov.
U.S. Federal Govt Cash for Clunkers Rules
A review of the actual text of the Consumer Assistance to Recycle and Save (CARS) Act reveals information about the Cash for Clunkers program rules. Below are 10 important rules United States consumers should know about the Cash for Clunkers Act.
$3,500 or $4,500 for 2009 Vehicle Purchase – Cash for Clunkers Program Details
The CARS Act spells out rules for the clunkers program in non-standard everyday language. Here are ten of those Cash for Clunkers rules in plain language:
- The two available voucher amounts are $3,500 and $4,500.
- Vouchers are electronic.
- There are no income limits to obtaining vouchers. Anyone with any level of gross income may take advantage of this program.
- Vouchers will only be issued toward the purchase of a new vehicle (the title cannot be previously held in another person’s name).
- Regardless of the program’s official start date, vouchers will only be issued through November 1, 2009 under current law.
- Dealers are prohibited from charging customers fees for using vouchers.
- Consumers must turn over trade-ins to the dealer; the dealer then ensures that the vehicles are turned in for destruction. The ultimate goal is for the traded in vehicles to never be used as automobiles in he United States of any other country.
- Every person is eligible for one voucher; if two people jointly purchase a vehicle, only one voucher may be used toward that single purchase.
- Dealers are not allowed to reduce the amount of any other advertised deals (manufacturer rebates, discounts) by the amount of any voucher used. They are required to accept vouchers in addition to any other advertised discounts.
- U.S. taxpayers needn’t worry that the value of vouchers will be considered taxable income in the year of receipt. The legislation specifically exempts this government benefit from income.
Obama New Car Stimulus Incentives – Cash for Clunkers Program Facts
The federal government has 30 days after the date of enactment to nail down the details for the general public and automotive dealers. As information is available, it will be posted on the official government website, cars.gov.
Official Car Allowance Rebate System Website – Cars.gov
According to the legislation, consumers should look to cars.gov for following information:
- Eligibility of a potential trade-in
- How to locate registered car dealers
- A list of new fuel efficient vehicles that meet program requirements
For information on exactly how to qualify for a $3,500 voucher or $4,500 down payment toward a 2009 vehicle purchase, see the article United States Cash for Clunkers Program Details (link above). The Car Allowance Rebate System program represents only one of the federal government cash incentives available to Americans this year. Read more about new car tax rebates authorized by President Barack Obama:
2009 Federal Car Tax Rebate- No Sales Tax States
New Car Tax Rebate- Obama Economic Stimulus Plan
Resources:
Consumer Assistance to Recycle and Save Act of 2009
United States Library of Congress
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