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'Cash For Clunkers' Web Site Launched

Motorists To Get $3,500-$4,500 In Incentives

POSTED: Friday, June 19, 2009
UPDATED: 5:36 pm EDT July 24, 2009

The government's "Cash For Clunkers" program kicked off Friday.

The initiative is a push to get fuel-inefficient vehicles off the streets.

The program provides government incentives of $3,500 to $4,500 to motorists who trade in their gas guzzlers for more fuel efficient vehicles.

New car buyers can trade in vehicles no older than 25 years, that get less than 18 miles to the gallon for a $3,500 voucher towards the purchase of a new car, if that car gets four to nine more miles to the gallon.

Consumers will get a $4,500 voucher if the new car gets at least 10 more mpg.

The owner of the old car must provide a lien-free title and proof of one year's insurance. Each person is only eligible for one "Cash For Clunker" voucher.

The new cars must cost under $45,000.

Click here to see how much your car is worth.

Dealers participating in the program would receive an electronic voucher from the government for the trade-in to apply to the purchase or lease of a qualifying vehicle. The bill directs dealers to ensure that the older vehicles are crushed or shredded to get the clunkers off the road.

The program was intended to help replace older vehicles -- built in model year 1984 or later -- and would not make financial sense for consumers owning an older car with a trade-in value greater than $3,500 or $4,500.

The U.S. industry is expected to generate about 9.5 million vehicles sales in 2009, compared with more than 13 million in 2008 and more than 16 million in 2007.

The program will run until Nov. 1, or until $1 billion in vouchers are handed out.

For more information on the program, click here.

Also, visit www.fueleconomy.gov for more information on government fuel regulations.

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