Eligible Trade-In Vehicle Or 'Clunker'
Car, light truck or large light-duty truck:
- With combined (hwy/city average) fuel economy of 18 mpg or less, which can be found by visiting www.fueleconomy.gov
- Manufactured less than 25 years since the date of the trade-in.
Category 3 Work Truck
- An 8,500 to 10,000 pound GVW work truck model year 2001 or older.
Ownership Requirements
- Is in drivable condition.
- Continuously insured consistent with applicable state law.
AND
- Registered to the same owner for a period of not less than 1 year immediately before such trade-in.
New Vehicle Requirements For $3,500 Credit
New Passenger Car:
- Must achieve a combined (highway/city) fuel economy improvement of at least 4 mpg (minimum of 22 mpg) above the trade-in.
New Light-Duty Truck:
- Must achieve a combined (highway/city) fuel economy improvement of at least 2 mpg (minimum of 18 mpg) above the trade-in.
New Large Light-Duty Truck (6,000-8,500 pounds GVW)
- Must achieve a combined (highway/city) fuel economy improvement of at least 1 mpg (minimum of 15 mpg) above the trade-in.
Category 3 Work Trucks (8,500-10,000 pounds GVW):
- No fuel economy requirement.
New Vehicle Requirements For $4,500 Credit
New Passenger Car:
- Must achieve a combined (highway/city) fuel economy improvement of at least 10 mpg (minimum of 22 mpg) above the trade-in.
New Light-Duty Truck:
- Must achieve a combined (highway/city) fuel economy improvement of at least 5 mpg (minimum of 18 mpg) above the trade-in.
New Large Light-Duty Truck (6,000-8,500 pounds GVW):
- Must achieve a combined (highway/city) fuel economy improvement of at least 2 mpg (minimum of 15 mpg) above trade-in.
Category 3 Work Trucks (8,500-10,000 pounds GVW):
- No $4,500 work truck voucher
Effective Dates And Limitations
- Effective Late July 2009 through November 1, 2009*
*The National Highway Traffic Safety Administration (NHTSA) must finalize detailed rules and create an online system for dealers to complete these transactions. NHTSA has to complete the final rule 30 days after the bill becomes law.
- No customer income limitations under this program.
- New vehicle must be $45,000 MSRP or less.
- Limit one voucher per customer.
- Not more than one voucher may be issued for the joint registered owners of a single eligible trade-in vehicle.
- Excludes leases less than 60 months.
Scrappage Requirements
- Dealer must certify the old vehicle will not be resold for reuse as an automobile or truck in the United States or any other country.
- Dealer must transfer the old vehicle to an entity that will ensure the vehicle is crushed, shredded and not returned to road use.
These are the general guidelines as written in the bill. NHTSA must finalize specific rules for this process. For further program details, visit www.cars.gov.
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