The National Highway Transportation Safety Agency (NHTSA) has introduced the CARS program, a federally funded program that provides up to $4,500 assistance towards the purchase or lease of a new fuel-efficient vehicle when consumers trade in a qualifying 1985 or newer fuel-inefficient vehicle.
Through this program, the government will provide $3,500 or $4,500 towards the purchase or lease of a new, more fuel efficient car, truck, van or SUV (up to $45,000) when the consumer trades in an eligible 1985 or newer vehicle in drivable condition. The amount of the credit depends on the difference in fuel economy between the old and new vehicles. The old vehicle must have a fuel economy rating of 18 mpg or less, and the new vehicle must have a fuel economy rating of 22 mpg or more. The CARS program will end November 1, 2009, or when the NHTSA’s $1 billion in allocated funding is depleted, whichever occurs first.
Draper continued, “Best of all, the credit is not a loan, so it doesn’t need to be repaid, and it’s combinable with any existing dealer, manufacturer, and government discounts and rebates. And if your trade is worth more than the credit, we’ll give you what your trade is worth”