How is my Cash for Clunkers Credit Amount Determined?

For passenger cars, if the improvement in fuel economy between the trade and the new vwehicle is between 4-10mpg, the rebate anount will be $3,500. If the improvement is more than 10mpg, the rebate is $4,500.


The value of the credit given for the purchase or lease of a category 1 or 2 truck also generally depends on the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle that is purchased or leased. If the new vehicle is a category 1 truck that has a combined fuel economy value that is at least 2, but less than 5, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new category 1 truck has a combined fuel economy value that is at least 5 miles per gallon higher than the traded-in vehicle, the credit is $4,500.

How Do I Know if I Qualify?

You can check the fuel economy of your trade in by going to the fuel economy website and checking the year make and model of your car. You need to look at the "combined" fuel economy and it must be 18mpg or lower.

You can also check the fuel economy of the vehicle you wish to purchase. Generally cars need to have a combined fuel economy of 22mpg. The amount of your rebate depends on the difference in fuel efficiency from your old vehicle to your new one.

Also, the purchase price of the new vehicle cannot exceed $45,000.

How The Program Works

The "Cash for Clunkers" Program was initiated by President Obama to spur the sale of new vehicles in the US. The program offers a $3500-$4500 rebate to consumers who own older, lower fuel economy vehicles. In order to qualify, you MUST purchase or Lease a brand new fuel efficient vehicle. There is a very large selection of qualifying vehicles.

This program does NOT mean that you have to buy a hybrid or electric car. It was designed to get older gas hogs off the road.

If you are confused about this program, here are some important items to review:

1.) Your trade in vehicle must be a 1984 or newer
2.) Your trade in vehicle must get 18mpg or less (exceptions for trucks and vans)
3.) You trade in vehicle must have been registered in your name and insured for the past year
4.) Program expires Nov. 1st or when the funds have been exhausted

Use the articles on this page as a guide to help you get started. If you qualify for this program, there may never be a better time to buy a new car.