The Car Allowance Rebate System — aka the Cash for Clunkers Program — is under way and auto dealers participating in the program are working with customers interested in taking advantage of CARS’ benefits.
The program proved so popular — in the first few weeks it generated more than $920 million in rebates and more than 220,000 in auto sales, according to the New York Times — that the Federal government has appropriated an additional $2 billion to keep it going.
“Not only were some consumers quick to take advantage of the new program, but scammers didn’t waste any time either,” said Barbara Read, vice president of communications for the BBB serving northern Colorado and greater Wyoming. “Because the program is new, identity thieves know that they can cull sensitive personal information from consumers while looking like they are actually trying to offer assistance to participate in the program.”
Even before the legislation passed, the National Highway Traffic Safety Administration reported that Web sites were soliciting information such as names, addresses and Social Security numbers in order to register people for the program.
Your BBB offers the following guidance on the basics of the CARS program:
- You do not need to register or receive a voucher to participate in the program; it is the responsibility of the dealership to fill out all appropriate paperwork.
- Not all dealers participate in the program. Participating dealers must register with the federal government.
- The program applies to new cars and trucks that are either leased or purchased.
- Not all new vehicles qualify for receiving the credit. The new vehicle must be priced less than $45,000 and passenger vehicles must have a combined fuel economy value of at least 22 miles per gallon.
- The amount of the credit is $3,500 or $4,500 depending upon the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle. The credit will be applied toward the cost of the new car.
- Trade-ins that qualify must be no older than 25 years and have a combined city/highway fuel economy of 18 miles per gallon or less at the time it was originally purchased. Visit www.fueleconomy.gov to learn the fuel economy of specific vehicles.
- The trade-in vehicle must have been continuously insured, in accordance with state law, and registered in the same owner’s name for the one-year period immediately prior to the trade-in.
- Additional restrictions apply and the BBB recommends consulting the official Web site for the CARS program at www.cars.gov for more information. Consumers can also call the CARS Hotline at (866)-CAR-7891 or TTY at (800)-424-9153.
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