What is the Car Allowance Rebate System?
The Car Allowance Rebate System (CARS) also known as "Cash for Clunkers" was signed into law by President Barack Obama on June 24. Cash for Clunkers allows consumers to trade-in their older less efficient vehicle and receive up to $4,500 towards a new more efficient one. The Cash for Clunkers bill allots $1 billion dollars towards new vehicles in this program before November 1st, 2009 or until funding is depleted.
Do I need to get a voucher or sign up Cash for Clunkers
No. A voucher is not needed to sign up for Cash for Clunkers. Your participating Toyota dealer will apply the credit at time of purchase or lease.
How can I find out if my Toyota dealer participates in Cash for Clunkers?
The easiest way to find out if your Toyota dealer participates in Cash for Clunkers is to call and ask. If your local dealer does not participate they will gladly assist you in finding a dealer close by that does.
How do I know if my car/truck qualifies for the Cash for Clunkers program?
There are several requirements your vehicle must meet to be eligible for Cash for Clunkers.
- Your vehicle must be drivable.
- The vehicle needs to have been insured in compliance with state laws and registered to you for at least one year.
- Vehicle must be no more than 25 years old.
- Your trade-in must have an EPA combined rating of 18 MPG or less. (Large trucks and cargo vans may have different specifications.)
- No voucher is required. Dealers will apply credit.
- The rebate program runs until Nov 1, 2009 or when the funds are depleted.
- The trade in will be scrapped.
- The vehicle you are purchasing/leasing must:
- Be a new car.
- Have an MSRP of $45,000 or less and if leased must be leased for at least 5 years.
How can I find out my vehicle's manufactures date?
The month and year can be found on the safety standard certification sticker on the inside frame of the driver's side door.
How do I find out my cars combined MPG?
Go to http://www.fueleconomy.gov/feg/findacar.htm click the year then make and model. There you will find the new combined MPG for your vehicle.
How many Toyota/Lexus/Scion vehicles qualify for Cash for Clunkers?
There are 26 vehicles within the Toyota family that qualify for Cash for Clunkers.
Under Cash for Clunkers may I lease a vehicle?
Cash for Clunkers allows you to purchase a new vehicle as well as lease a vehicle. The terms of the lease must be at least five years.
Is there a limit on what the vehicle I purchase/lease costs?
Yes, the vehicle's MSRP cannot be higher than $45,000
Under Cash for Clunkers can I buy a used car?
No, Toyota Certified Used Cars do not qualify. The Cash for Clunkers program only applies to new cars.
How much credit will I receive under Cash for Clunkers?
The amount of credit available is $3,500 or $4,500, depending on the type of vehicle, as well as the difference between the fuel economy of your trade and the new vehicle purchased/leased. Trucks also have a different requirement.
Will I receive full trade in value for my car along with the Cash for Clunkers credit?
No. The bill requires your trade-in vehicle to be scrapped.
Will Toyota be covered by Cash for Clunkers even though it isn't an American-based manufacturer?
Yes, Toyota is proud to be an active participant in the CARS/Cash for Clunkers Program.
If I own a Work Truck that has no MPG rating, does it automatically qualify for Cash For Clunkers?
Not automatically, but possibly. Because work trucks were never rated for fuel efficiency, the only criterion for Cash for Clunkers is their age. To qualify, your truck must have been manufactured in, or before 2001. It also must be less than 25 years old on the date of your trade in.
I recently traded in my old car. Do I qualify for the Cash for Clunkers rebate?
Unfortunately no. The Cash for Clunkers Bill stipulates that we cannot apply rebates retroactively.
Is the Cash for Clunkers credit taxable as income for consumers?
The Cash for Clunkers credit is not considered income for the consumer. The credit is considered income for the dealer.
Will I be required to pay state or local taxes for my Cash for Clunkers credit?
This all depends on the sales tax laws of each state. Consumers should check with their dealers or review the tax laws of their own state to answer this question.
Under Cash for Clunkers what new vehicles qualify?
To qualify for Cash for Clunkers the new vehicle must have an MSRP of no more than $45,000. Passenger vehicles must have a combined fuel economy rating of at least 22 MPG. Category 1 trucks must have a combined mpg of at least 18. Category 2 trucks must have a combined MPG of at least 15. Category 3 trucks do not have a minimum fuel requirement, though there are special requirements that must be met when purchasing a category 3 vehicle.
What is the difference between category 1, 2 and 3 trucks?
A category 1 truck is classified as a non-passenger automobile. The vehicles include, SUVs, small and midsized pickups and small and medium passenger and cargo vans.
A category 2 truck is a large pickup or van. The size is based upon the length of the wheelbase (over 115 inches for trucks and over 124 inches for vans).
A category 3 truck is a work truck and has a gross vehicle weight between 8,500 and 10,000 pounds.
Will I also be eligible for Toyota rebates/discounts as well as the Cash for Clunkers credit?
Yes. Toyota will use the Cash for Clunkers credit in addition to any applicable advertised discounts/rebates they may offer.
May I use the Cash for Clunkers credit along with other government incentives?
Yes. The Cash for Clunkers credit can be combined with State and Federal rebates including the Hybrid Vehicle credit.
Can I obtain more than one Cash for Clunkers credit?
No. Only one Cash for Clunkers credit may be issued per person. Also no more than one credit can be issued for joint owners of a single vehicle.
Will I be charged a fee for using the Cash for Clunkers credit?
No. Toyota will not charge a fee for using the Cash for Clunkers Credit.
To obtain the Cash for Clunkers credit what should I bring into my Toyota Dealer?
To receive your Cash for Clunkers credit, you will need to bring proof of ownership of the vehicle, the title, and proof that the car has been insured continuously for at least one year prior to the date of trade in.
What will happen to my trade in?
The Cash For Clunkers program is set up to get less fuel efficient vehicles off the road. Because of this, your vehicle will be destroyed so that it cannot be resold for reuse as an automobile. Some individual parts may be resold, however, the engine and drive train will be completely destroyed.
source : http://www.toyota.com/cashforclunkers/faqs.html
