How to Buy a Car with a CASH FOR CLUNKERS Voucher

In order to motivate people to buy a new car, the U.S. government has created a bill called "Cash for Clunkers".

The "Cash For Clunkers" bill will give consumers a credit voucher of up to $4,500 for trading in their old gas guzzler and buying a more fuel efficient new model.

Follow these steps to get a generous rebate and transform that clunker into a new ride:

Instructions

1

Verify your Clunker is Eligible

Cars, SUVs, Vans, Pickups: You must trade in a vehicle that has been in use, registered and insured for at least 1 year. The vehicle must have a federal combined city/highway fuel economy rating of 18 or fewer miles per gallon and be no older than a 1984 model.

Confirm Clunker city/highway fuel economy at www.fueleconomy.gov

2

Verify the New Car is Eligible

The new car, suv, van or pickup purchased must be priced at $45,000 or less. Domestic and foreign models sold in the U.S. qualify.

Confirm the new vehicle's city/highway fuel economy at www.fueleconomy.gov

3

Calculate the Clunker Credit Voucher

New Cars: Receive a $3500 voucher if the new car is rated at least 4 mpg better than the trade-in or receive a $4,500 voucher if the new car gets at least 10 mpg better. The new car must get at least 22 MPG.

New SUVs, Vans and Pickups: Receive a $3500 voucher if the new one gets at least 2 mpg better than the clunker or $4,500 if the new one gets at least 5 mpg better. The new vehicle must get at least 18 MPG.

4

Negotiate and Purchase New Vehicle

The new car dealer will verify all requirements listed above to confirm eligibility for the Cash for Clunkers voucher.

5

Where's The Money

The voucher or credit is a electronic transfer from the government to the new car dealership. Dealers want the voucher amount to be considered as cash from the car purchaser. The cash contribution from the voucher would decrease the amount to be financed and would help buyers get easier approval for a car loan.