Cash for Clunkers

THIS PROGRAM ENDED AUG 24th AT 8:00 PM.

As of late we have received several questions relating to the "Cash for Clunkers" program.  The Car Allowance Rebate System (CARS) or as it has been dubbed “Cash for Clunkers” is a $1 billion government program designed to help consumers buy or lease a more environmentally friendly vehicle.  Consumers who buy a car a car between July 1, 2009 and November 1, 2009, or until authorized funds have been used up, may qualify.  If you are a qualifying consumer you will receive a credit of $3,500 or $4,500 towards the purchase or lease of a new vehicle.

Generally your vehicle must be less than 25 years old and get less than 18 mpg.  In addition you must have had registered and insured that vehicle for the last year.  Another words you can’t go buy a $100 car today and trade it in tomorrow for a $4500 credit.

The credit will be applied towards the price of the vehicle at the time you purchase or lease it.  It is NOT a credit on your individual tax return nor will you need a voucher to qualify.  To get more information on the program you can go to http://www.cars.gov/.

The information contained on this site should in no way be considered to be professional advice in the form of tax, accounting, or legal service or consultation. You should always consult with a professional familiar with your individual circumstances before making any specific decisions related to accounting, tax, or legal matters.