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C.A.R.S - car allowance rebate system

Notice

To read more about the rule change that allows disposal facilities an additional 90 days, for a total of 270 days, to crush or shred a vehicle traded in under the CARS program click here

Successful CARS Program

The enormously successful CARS program helped consumers who turned in gas guzzlers buy nearly 700,000 more fuel efficient vehicles in fewer than 30 days. By late September the U.S. Department of Transportation paid all eligible and complete dealer transactions. "There can be no doubt that this program drummed up more business, for more people, in more places at a time when our economy needed help the most," said Transportation Secretary Ray LaHood. DOT continues to work with the few remaining dealers who have outstanding submissions to try and correct any errors so payment can be made.

Important Things to Know

  • What is NHTSA doing to guard against fraud? Click here for more information. Allegations of fraud may be reported by calling our toll-free hotline at 1-405-954-3700.
  • To participate in the CARS program, you do not have to sign an agreement to pay back the dealer the CARS credit amount if the deal is rejected.
  • You are required to leave your trade-in vehicle at the dealership and sign over the title to the trade-in vehicle at the time of the deal.
  • The dealer must give you the new vehicle at the time of the deal.
  • 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.
  • Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
  • The program requires the scrapping of your eligible trade-in vehicle and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, minus $50 the dealer keeps for administrative fees, will be in addition to the rebate, and not in place of the rebate.

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

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Disposal and Salvage

The information contained in the file was entered by dealers and could be changed only by dealers, to maintain accountability. As a result, there are some inconsistencies. For some fields dealers entered the information in a variety of formats (such as some phone numbers with a dash and others without a dash) and in other cases the data were mistyped (such as switching two digits of the phone number). Two additional fields (trade-in insurance start date and trade in NMVTIS flagged date) were optional and frequently have missing values.

Three caveats are worth noting. The first involves the dates associated with the CARS invoice and the sale date. The CARS invoice date was a default date provided by the system when the invoice (transaction) was created, but the dealer could override with a different date. Generally, a valid CARS invoice date ranges from July 27, 2009, through August 25th, 2009. However, there are some valid dates outside of this range because of pilot testing before July 27th and transactions processed through the regulatory exception process after August 25th. The CARS sale date also was provided by the dealer in the transaction form. The CARS sale date should not be after the invoice date. Cases where the sale date is after the invoice date or outside of the proper date range are likely to involve a mistyped date by the dealer.

The second caveat involves the vehicle identification number (VIN) for both the new and the trade-in vehicle. The VIN is a 17 character long serial number that uniquely identifies the vehicle and that typically follows a standard format. Both the new and trade-in VIN may contain mistyped information by the dealer, resulting in a VIN that appears to be nonstandard. For example, the dealer may have entered the letter "O", which is not a valid character in a VIN, instead of the number "0". In addition to mistyped information, some VINs may contain place holder characters entered by the dealer at NHTSA's direction to override a duplication error resulting from another dealer entering the same VIN by mistake or as part of an incomplete transaction. (Without this step, complying transactions would continue to be rejected.) It is also the case that some vehicles are titled with nonstandard VINs, and the trade-in VIN was compared against the VIN on the title. Finally, in some transactions it appears that the dealer may have reversed the new vehicle and trade-in VINs.

The third caveat involves the vehicle categories and fuel economy (miles per gallon) for the new and trade-in vehicles. In some instances the vehicle categories of the new and trade-in vehicle or the fuel economy of the two vehicles does not appear to conform to the requirements of the regulation for a valid CARS deal. NHTSA is aware of these issues and continues to research and investigate. One reason is that the EPA updated the fuel economy data on the website at fueleconomy.gov in conjunction with the CARS final rule, which affected the eligibility of certain vehicles under the CARS program. Deals that had been completed based upon the old information were accepted as valid transactions even though the new information makes it appear that the transaction is not valid. NHTSA also has identified cases where the vehicle category was incorrectly entered by the dealer, which made the deal appear to be invalid, but the deal is valid under the correct category.

NHTSA continues to review and research CARS cases for compliance. We are finalizing a data quality plan to identify and correct data integrity issues. In the instances described above where data issues involve the possibility of improper payment, NHTSA is investigating the underlying transactions and will take corrective action when necessary as part of our ongoing CARS enforcement effort.