What is the Car Allowance Rebate System?

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President Obama signed into law a program NHTSA is calling the Car Allowance Rebate System (CARS). This is a government program that helps you purchase a new, more fuel efficient vehicle when you trade in a less fuel efficient vehicle. See the Frequently Asked Questions for more details.

Under the CARS program, NHTSA is charged with rules for program implementation in 30 days. You may want to contact your local dealer in mid-July. See the Program Rollout.

Check back to this site often for updates and further information.

  5 Important Things to Know

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• Your vehicle must be less than 25 years old on the trade-in date
• Only purchase or lease of new vehicles qualify
• Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
• Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
• You don't need a voucher, dealers will apply a credit at purchase

Check this site frequently for the most recent updates from the government.