The cash-for-clunkers program, which kicks off Monday, has created tremendous interest as almost 16,000 auto dealers or 80 percent of the nation's new vehicle sellers have signed up to participate on it, Bloomberg reported today citing Ray LaHood, Secretary of the U.S. Department of Transportation.
The government program which runs through November 1, 2009, also known as the Car Allowance Rebate System or CARS, consists of rebates of $3,500 or up to $4,500 to owners of old cars who want to trade them in for more fuel efficient vehicles.
â€œWith this program, we are giving the auto industry a shot in the arm and struggling consumers can get rid of their gas-guzzlers and buy a more reliable, fuel-efficient vehicle,â€ Secretary LaHood said on Monday in a statement.
The program requires participants to prove they own the car and have had it insured under the same name from at least the past year. Trade-in vehicles must have been made less than 25 years before the date they are traded in, get 18 miles per gallon or less, and be in drivable condition.
Only new vehicles can be purchased with the rebates. A list of new vehicles eligible for purchase has been compiled by the site Edmunds.com which is available here.
Additionally, click here to see a list of the documents that auto dealers will require from the car's owners.
Follow the CARS eligibility guide for a personal inquiry on whether old and new vehicles qualify for the rebate.
The Cash for Clunkers is a move by the Obama administration to boost cars and light truck sales, which fell to 13.2 million last year. The National Highway Traffic Safety Administration (NHTSA) estimates the program could help purchase 250,000 new vehicles.