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Chloe Chloe
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July 01, 2008
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Resolved Question

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How to apply for the cash for clunkers program?

my car has over 225000 miles and very low gas mileage and being a new single mom i need a little break. how to you apply for this clunkers program?
  • 5 months ago
Shelby by Shelby
Member since:
July 07, 2006
Total points:
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Best Answer - Chosen by Voters

You don't actually "apply" for the incentive.

Allow me to explain the program. It is designed to benefit:
*Consumers – this action provides them something very tangible in this economic environment
*The Economy - it supports the automotive industry which plays such an important role in the overall health of our economy
*The environment - because it allows us to get greener faster, in terms of taking less fuel efficient vehicles off the road and putting more fuel efficient vehicles on the road
*New Vehicle Dealers – this program provides tremendous opportunity to reach out to a huge base of customers and sell them one of their outstanding new products.

The Bill (pdf download cited below ) was signed on June 24, 2009. The government has assigned NHTSA (National Highway Traffic Safety Administration) to set it all up. They have 30 days to do this. the program should be ready BY July 24, 2009. It is scheduled to end on November 1, 2009... or when the allotted money runs out, whichever comes first. It is a "first come - first serve basis".
It is a complicated task to organize the whole thing and New Car Dealers will be responsible to make the process seamless for consumers.

To make the process easier on yourself there is a step by step process (tutorial) on the Official website that the Government has set up.
(It is important that consumers go to this site for the Official verification of the rules, because there are already scams and misinformation all over the net.)

The 6 step process:

Step #1
Visit the website ( http://www.cars.gov/index.html )for CURRENT information.
The site will also list which new car dealers are registered to participate. Not all dealers are required to. You can also call around to dealers to see if they are going to participate. You will also have to visit another government website for the Official (new) fuel economy ratings.
( http://www.fueleconomy.gov/ )
Step #2
Determine if you qualify, then shop for a new car.
The basic rules are :
*Your vehicle must be less than 25 years old on the trade-in date
*Only purchase or lease of new vehicles 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
*You don't need a voucher, dealers will apply a credit at purchase
*Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
*The vehicle that you are trading in is required to be destroyed. Therefore, the value you negotiate with the dealer for your trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to you and estimate of the scrap value of your trade-in vehicle.
[When "shopping for the new car", there are certain rules for that too... so go back to STEP #1]

Step #3
Bring the title, registration and insurance papers showing continuous registration and insurance coverage for the past full year. The trade car MUST be: drivable ;Registered,insured & titled to the same owner for at least the last 12 months prior to the transaction

Step #4
When you buy or lease a new vehicle, the dealer handles the submission of all required information to NHTSA. The Dealer will also verify the documents.

Step #5
NHTSA ensures that your purchase meets the requirements. This is the tricky step...because if any of the qualifiers from any of the previous steps are determined to be inaccurate or fraudulent, the dealer that has "fronted" the cash rebate to you, will not see the reimbursment funds

Step#6
About 10 days later, NHTSA will issue a financial credit to the dealer—assuming all program requirements have been met.

Ford has also put together a website for consumers to help with Step #2
( http://www.letfordrecycleyourride.com/ )

I hope this helps.

Source(s):

In the auto business since 1983

Hours of research because I work for one of the dealers that will be participating in the program.
  • 5 months ago
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