Cash for Clunkers, also known as the Car Allowance Rebate System (CARS) was an incentive program to provide vouchers, worth between $3,500 and $4,500, to people who trade in less fuel-efficient vehicles for new, more efficient vehicles. Consumers were able to combine vouchers with manufacturers' incentives and rebates. For more information about the cars that qualify, check the video, Kelley Blue Book Explains Cash for Clunkers.

Also called the Consumer Assistance to Recycle and Save (CARS) Act, the plan was intended to be in effect between July 1 and November 1, 2009, or until funds ran out. After Congress funded the program with $3 billion, the program ended on August 24, 2009.

On September 26, the government announced that it had reimbursed participating dealers 98% of the incentives available under the Cash-for-Clunkers program.[1]

FORD CANADA CASH FOR CLUNKERS: On September 3, 2009, Ford of Canada launched its commercial version of the U.S. Cash for Clunkers program, offering Canadians up to $3,000 for vehicles that are 15 years old. Ford is the third automaker in Canada to offer such a program. Moreover, it's the highest rebate offered among the three. Under the plan, Ford would pay $1,000 toward a new car, or $3,000 toward a new truck or luxury Lincoln. "The Clean Air Foundation says a car made in 1995 emits up to 19 times as much smog-causing pollution as one made in 2004 or later."[http://www.thespec.com/News/Local/article/627974

This page last updated on: 09.27.09.