What is Cash for Clunkers?
President Obama signed into law The Consumer Assistance to Recycle and Save and Act, aka H.R. 2751, in June of 2009. The part of the law that pertains to the Cash for Clunkers is known as The Car Allowance Rebate System (CARS), which should go some way toward stimulating new car sales in the U.S. The new law means that consumers can trade in old cars for new ones and in the process receive a rebate from the government. What is the rebate I’ll receive? If you trade in an old car for a new car and both your trade-in and the new car qualify, you can receive from $3,500 to $4,500 in a government rebate. How is the rebate paid to me? The rebate is first cleared by the dealer, who receives an electronic funds transfer from the government at the time you’re buying or leasing your new vehicle. The rebate (whether it’s $3,500 or $4,500) is applied to your down payment on your new vehicle. This means that the rebate isn’t “cash in hand,” it is simple deducted from the price of the new vehicle. W
