Yessiree folks, for good or bad, the Cash For Clunkers Program starts NOW! Well, almost cuz technically it starts tomorrow, Friday 7-23-2009…although cars purchased from July 1, 2009 may also qualify.

Officially this U.S. Federal Government program is known as CARS which is an acronym for Car Allowance Rebate System.

President Obama signed into law a program the National Highway Traffic Safety Administration (NHTSA) is calling the Car Allowance Rebate System (CARS). This is a federal program that helps you purchase a new, more fuel efficient vehicle when you trade in a less fuel efficient vehicle and here is how it works…

• 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 program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.

What to bring to the Dealer to qualify:

• 1 Year Proof of Insurance. If your insurance card does not cover the entire year preceding the trade in, you will need other proof of insurance. Contact your insurance company to get evidence of 1 year worth of insurance. The form must include, at a minimum, the insurance company, policy number, VIN, start and end date of insurance (showing at least 1 year).
• Proof of Registration going back at least 1 year.
• “Clear” title. This means the title must be free of any liens or other encumbrances. If you have liens, you need to get these cleared before going to the dealer. This may include evidence on the face of the title showing no lien; that the title has been cleared (signed and stamped accordingly), or with an attached lien release from the lien holder.
• The vehicle manufacturer date found on the driver’s door or door jamb is less than 25 years old when you trade it in.

If you do not have any of the above items in your possession, you may do the following:

• Call your insurance company and have them provide evidence of 1 year’s worth of insurance on the trade-in vehicle. Make sure it includes the minimum requirements noted above.
• Contact your DMV for copies of prior registration certificates to show proof of ownership of the trade-in vehicle for at least the past year. The name on the registration must be the same as the name on the title and the same as the purchaser of the new vehicle.
• Clear your title by paying-off any loans outstanding and receive either a newly issued title from the DMV that is free of all liens and other encumbrances, or have the lien release document from the lien holder (signed and stamped accordingly), or your title signed and stamped accordingly (showing it is clear)

Once you are at the dealer you will be asked to certify to the following under penalty of law:

• The trade-in car is in drivable condition
• You are the registered owner, and have been for at least the last year
• The car has been continuously insured for the last year
• The car is titled in your name and has been for the last year
• You have not previously participated in the CARS program

More stuff:

• The trade-in is in drivable condition.
• You are the registered owner, and have been for the least the last year.
• The trade-in has been continuously insured for the last year.
• The trade-in is titled in your name and has been for the last year.
• You have not previously participated in the CARS program.

When you buy or lease a new vehicle, the dealer handles the submission of all required information to NHTSA.

NHTSA ensures that your purchase meets the requirements.

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

Go to www.Cars.gov to learn more about the Cash For Clunkers / CARS / Car Allowance Rebate System.

Thats all for now! Your comments are always welcome – and please Tweet this if you like it.

Steve