Cash for Clunkers, also referred to as Cash for Guzzlers or (H.R. 2751) is a measure to encourage consumers who own and operate a car that gets under 18 miles a gallon to trade the car in for a more fuel efficient model. 

The bill proposes that consumers will be rewarded if the new car they purchase is rated at or above 22 miles per gallon. (average city/hwy).  The measure has cleared two important votes and will head to Congress for a vote in the coming days.

There are two cash vouchers that can be issued when a consumer purchases a new, not used, car from a dealer.  If the new car gets 4 miles per gallon more than their current car, a consumer would get a cash voucher for $3,500. 

If the increase is 10 miles per gallon, they could get a $4,500 cash voucher.  Cars that have a trade in value greater than $4,500 would not be used for this program since all cars traded will be sent to the scrapyard.

A list of common questions and answers has been compiled for the Cash for Clunkers program: read Cash for Clunkers FAQ.   Among the most popular questions, here are some quick tips:

1.  
   1.  The bill language is not yet finalized so specific operational details are not known.  That includes start date, end date, and conditions about current vs. book estimated MPG.
   2. The bill speaks to purchasing ONLY new cars from a dealer that will take in your clunker as part of a new car transaction.
   3. Car or trucks can be traded in for a new car or a new trucks.  Trucks can be traded in for a new car.
   4. If you recently purchased a new car and want to know if the voucher is retroactive, the answer is most likely NO.  This is because you most likely do not have the paperwork to show you traded in a clunker and that the car went to the scrapyard.

Locate a Cash for Clunkers Dealer

If you are interested in purchasing a new car this summer with a cash voucher from the Cash for Clunkers progra, we suggest that you start the process now.  Use the form on the right to be connected with a Cash for Clunkers dealer in your state for the car you want to purchase.

Since the Cash for Clunkers bill is under-funded, we do not know how long the bill will last.  Be assured that your voucher will be there by be first in line.

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