Helpful Q&As for Dealers
Most Recent Questions and Answers
Categories
- Dealership Eligibility Questions
- Prospective Buyer Eligibility Questions
- Disclosure/Salvage/Disposal Questions
- Consumer Survey Questions
- Vehicle Registration Questions
- Transfer of Vehicles
- Disposal Facility and Salvage Auction Certification Forms
- Documents supporting a CARS Transaction
- Resubmission and Repayment of Improperly Received Funds
- Scrap Value and Crushing/Shredding of Trade-In Vehicle
Dealership Eligibility Questions
I am a dealer and I received the CARS credit from the government. Is there a reason that the credit is not in the full CARS credit amount ($4500 or $3500)?
YES. All qualifying CARS transactions are approved for the full amount of the CARS credit. However, the IRS has the authority to offset amounts owed by a dealer to the Federal Government from the amount of the CARS credit transferred to your account. For example, if you submit a transaction valued at $4500 that is approved but you owe $900 in back taxes, the IRS will keep the $900 and your transfer will be in the amount of $3600.
May dealers in the U.S. territories participate in the CARS program?
YES. Dealers in the 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands may participate in the CARS program.
If I am a Michigan or California dealer and I do not have a Manufacturer’s Statement of Origin (MSO) or Manufacturer’s Certificate of Origin (MCO) because I am not required to, can it still participate?
YES. These two states do not require an MSO or MCO to title some vehicles. For those vehicles, the Michigan or California dealer must send the invoice and application for title and registration in lieu of the MSO or MCO.
If I am a dealer who is currently out of stock of the vehicle my customer wants to purchase, but I have ordered the vehicle and entered into a final binding deal with the purchaser, is this transaction eligible for the CARS program?
YES, provided a VIN for the new vehicle is known. The dealer must enter the VIN of the new vehicle and the transaction must meet all the CARS program requirements. However, in instances where the MSO, MCO or invoice and application for title is not yet available because the new vehicle has been ordered, but not yet delivered, you must submit this information immediately upon receipt of it (after you submit the initial transaction).
Prospective Buyer Eligibility Questions
My consumer has an SUV with a Gross Vehicle Weight Rating (GVWR) under 8500 lbs. and a curb weight over 6000 lbs. Is there a special manner in which I must enter a CARS Program credit application for this type of trade-in vehicle?
YES. When you enter the attachments on the qualifying CARS Program credit application you will need to do two additional things:
1. Include a cover page that states "Unrated by EPA because trade-in has a GVWR under 8500/Curb Weight over 6000."
2. At step 8 of the iSupplier screen, under "Invoice Description," write the following: "Note: Unrated by EPA because trade-in has a GVWR under 8500/Curb Weight over 6000."
Can I do a CARS deal with a customer whose proof of registration shows a gap sometime within the past year?
NO. A gap indicates that there is no continuous registration.
Can I do a deal with someone who has a statement on official letterhead from the DMV stating that the customer has been continuously registered for the past 12 months?
YES. Provided that the statement is on official letterhead, this is an acceptable form of proof. Be sure to upload a copy of the letter.
Can I do a deal with a customer who has a bond or surety in lieu of insurance and the state allows this type of coverage?
NO. Insurance is required and must be shown to be continuous for the past year.
Exception: WISCONSIN, NEW HAMPSHIRE. There is no insurance requirement in these states due to state law.
The trade-in vehicle has been continuously titled and registered in one name but the insurance is in another name. Can this car participate in the CARS program?
YES.
Note: The title of the new vehicle must include the name of the person who had previously been on the title and registration. The insurance requirement is satisfied as long as the trade-in vehicle was insured, regardless of the identity of the individual holding the insurance policy.
The customer uses his trade-in vehicle part time and only keeps it insured when using it. Can this trade-in vehicle participate in the CARS program?
NO. The customer must be continuously insured for the past year to participate (with the exception of WI and NH, as explained in question 5, above).
Does the $45,000 MSRP cap on the price of the new vehicle apply before or after options and destination charges, etc.?
BEFORE. The $45,000 MSRP cap is the base MSRP – the price on the Monroney label, before any features, options, taxes, or destination charges are added to the price.
My customer has a qualifying vehicle that he would like to trade in, but he also has another vehicle he can trade in at the same time to defray the cost of the new vehicle. If I am willing to accept the second vehicle, will my customer still get the credit for the first?
YES. As long as the requirements are met for a CARS transaction, the deal you negotiate with the purchaser regarding the payment for the remaining cost of the car does not affect his eligibility. However, a purchaser can only receive one credit under the CARS program.
My OEM has started rolling out some 2010 models. Do our 2009 models still qualify as “new” vehicles for the CARS program?
YES. The CARS Act does not define “new” vehicle by model year. As long as the equitable or legal title of the automobile has not been transferred to any person other than the purchaser, the vehicle is a “new” automobile under the CARS program.
A customer wants to trade in a vehicle with a replaced engine. The original vehicle had a 6-cylinder engine and a combined “Estimated New MPG” of more than 19 MPG. The new V-8 engine is far less fuel efficient. Is this an eligible trade-in vehicle under the CARS program?
NO. The CARS program uses EPA fuel economy estimates based on the vehicle when it was new.
My customer wants to trade in a vehicle with a combined “Estimated New MPG” that does not qualify it as a trade-in under CARS. The vehicle is a dual-fueled vehicle, and the combined MPG for gasoline is greater than 18, but on the combined MPG for E-85 is less than 18. Will this vehicle qualify under the CARS program as a trade-in?
NO. The final rule specifies that the fuel economy rating must be based on the combined MPG for gasoline. The final rule also defines the rating as the number posted under the words “Estimated New EPA MPG” and above the word “combined” for vehicles of model years 1984-2007, and as the number posted under the words “NEW EPA MPG” and above the word “Combined” for model year 2008-present.
My customer has a vehicle which meets all the requirements for the CARS program, but the transmission broke down last week and will cost $1000 to repair. May this vehicle participate in the CARS program?
YES, but ONLY IF the transmission is fixed. The CARS final rule specifies that a trade-in vehicle must be in drivable condition on the date of the trade-in. The dealer must certify, in writing, after operating the car on public roads, that it is drivable. The purchaser must also certify, in writing, that the trade-in vehicle is in drivable condition. Both the purchaser’s and the Dealer’s certification are required for a CARS transaction.
Disclosure/Salvage/Disposal Questions
Do I have to disable the engine if the salvage auction or disposal facility offers to disable the engine?
YES. The dealer must disable the engine. The salvage auction or disposal facility may not disable the engine. Dealers certify that they will disable the engine of the trade-in vehicle before transferring the trade-in vehicle to an eligible salvage auction or disposal facility.
Does the vehicle have to be crushed within 180 days?
YES the entire vehicle, including the engine block and drive train (unless the drive train is sold as separate parts), must be crushed or shredded within 180 days. Any part other than the engine block and drive train (unless the drive train is sold in separate parts) that is removed prior to 180 days may be inventoried and sold separately with no time restrictions.
Do I have to disclose the vehicle's scrap value to my customer?
YES. The law requires the dealer to disclose to the customer the best estimate of the scrap value of the trade-in at the time of the transaction.
Is there a certain time by which a dealer must transfer a CARS trade in from the dealership to an eligible disposal facility or salvage auction?
NO. The CARS regulation does not mandate a date by which a dealer must transfer a CARS trade-in from the dealership to the disposal entity. NHTSA notes, however, that dealers are obliged to disable the engine of CARS trade-in vehicles within 7 calendar days of receipt of payment by the Government. Additionally, when the dealer does transfer the disabled CARS trade-in vehicle, NHTSA reminds dealers the dealers must submit the completed Disposal Facility or Salvage Auction Certification Form to disposal@cars.gov within 7 days.
Consumer Survey Questions
I am a dealer. Am I required to present the consumer survey to buyers?
YES. Note: Participation in the survey is optional for the buyer, but even if the buyer declines to participate, dealers should return the survey form (marked “declined”) with the other scanned forms. The data obtained from the survey is necessary to evaluate the program as required by Congress, and without dealer cooperation in distributing and returning the survey, Congress will be unable to determine the success of the program, which will be of interest when it considers future extensions.
Vehicle Registration Questions
Are there different ways to meet the CARS Program continuous registration requirement?
YES. There are three distinct ways to meet this requirement:
- A state registration card/document or series of cards/documents that shows continuous registration of the trade-in vehicle in the name of the purchaser for the last 12 months.
- A current state registration card/document in the name of the purchaser AND a title in the name of the purchaser showing ownership of the trade-in for the last 12 months.
- A current state registration card/document and a commercially available vehicle history report that shows continuous registration of the trade-in vehicle in the name of the purchaser for the last 12 months
Is one of the ways to meet the CARS Program continuous registration requirement preferred?
NO. Any one of the three ways is fine.
My state registration card(s) does not include information to demonstrate that my trade-in vehicle was continuously registered to me for a year. Is there another way for me to demonstrate the registration requirement?
YES. The registration requirement can be demonstrated in different ways. If your registration card(s) is not sufficient evidence, you may demonstrate that the trade-in vehicle has been continuously registered to the purchaser for the year immediately prior to the trade-in by providing the following documents:
Transfer of Vehicles
Does a disposal facility have to be on NHTSA’s Disposal Facility List?
YES, except in the U.S. Territories. For transactions in the 50 U.S. States and the District of Columbia, a disposal facility receiving a vehicle traded in under the CARS program must be on NHTSA’s Disposal Facility List on the date the facility receives the vehicle.
Is there a certain time by which a dealer must transfer a trade-in vehicle from the dealership to an eligible disposal facility or salvage auction?
NO. The CARS regulation does not specify a date by which a dealer must transfer a trade-in vehicle to the disposal entity. NHTSA notes, however, that dealers are obliged to disable the engine of CARS trade-in vehicles within 7 calendar days of receipt of payment by the Government. Additionally, when the dealer does transfer the disabled CARS trade-in vehicle, NHTSA reminds dealers that they must submit the completed Disposal Facility or Salvage Auction Certification Form received at the time of transfer to disposal@cars.gov within 7 days.
Must a disposal facility report the trade-in vehicle to the National Motor Vehicle Title Information System (NMVTIS)?
YES. A disposal facility must report the vehicle as a scrap vehicle within seven days of receipt, and must report it as crushed or shredded within seven days of crushing or shredding.
Are there any restrictions on what a disposal facility can do with a vehicle prior to crushing or shredding it?
YES. A disposal facility must dispose of all hazardous materials in accordance with State and Federal law. A disposal facility may not transfer the vehicle prior to crushing or shredding it, and may not sell the engine block or drive train (except that with respect to the drive train, the transmission, drive shaft, and rear end may be sold as separate parts). See the certifications on the Disposal Facility Certification Form for a more complete list of what facilities may and may not do.
Disposal Facility and Salvage Auction Certification Forms
Does the CARS regulation state who is responsible for submitting the Disposal Facility Certification Form to NHTSA?
YES.
If the vehicle is received directly from the dealer, the dealer must submit the form.
If the vehicle is received through a salvage auction, the salvage auction must submit the form.
Is there a certain date by which a Disposal Facility Certification Form must be submitted to NHTSA?
YES. A dealer or salvage auction must submit the Disposal Facility Certification Form to disposal@cars.gov within seven calendar days of receipt of the form.
Is there a way to switch the disposal facility or salvage auction I entered on my initial CARS application for reimbursement if I still have the trade-in vehicle in my possession?
YES. Provided the dealer still has the trade-in vehicle, the dealer may elect to send the trade-in vehicle to a disposal facility or salvage auction other than the one the dealer initially listed.
Note: If a disposal facility has already signed a certification form, then that disposal facility must retain the vehicle for crushing and shredding.
May a dealer submit disposal facility and salvage auction forms for multiple CARS deals in one email to the disposal@cars.gov email address?
YES.
May a disposal facility email the completed disposal facility form to the dealer, who then forwards it to disposal@cars.gov?
NO. The CARS regulation requires the disposal facility to deliver to the dealer, at the time of the transfer and as a condition of the transfer, the signed disposal facility form.
If a dealer misses the 7 day deadline for submitting the disposal facility or salvage auction certification form, is there a way to correct it?
YES. The disposal facility or salvage auction certification form must be submitted to NHTSA within 7 days of receipt by the dealer. However, if an inadvertent delay occurs, the dealer should immediately submit the required form to avoid potential enforcement action.
Documents supporting a CARS Transaction
If an invoice is rejected because it is illegible when copied or scanned, may a dealer submit some other form proving the contents of the illegible attachment?
YES. If an item is illegible, the dealer may include a notarized statement swearing that the document is illegible when copied or scanned and including all the relevant information from the document. This notarized statement should be submitted along with the illegible document and the dealer should use the “notes” field to alert the reviewer of this problem.
Will NHTSA accept handwritten information from an insurance company to prove insurance?
YES, as long as the handwritten information is on insurance company letterhead.
Must a dealer submit a purchaser survey even if the purchaser declined to take it?
YES. For record keeping functions at NHTSA, a dealer should submit a blank form if the purchaser declined to take the survey.
Must the dealer hold on to the records and documents associated with CARS transactions?
YES. For a period of five years from the date on which a document was created or received, the dealer must maintain a copy and make this copy available, upon request, to NHTSA Enforcement.
Must a disposal facility retain the title of the trade-in vehicle after it crushes or shreds the trade-in vehicle in conformance with the CARS regulation?
YES. The disposal facility must keep the title as part of the recordkeeping provision of the CARS regulation for 5 years from the date it receives the title. If the original title must be turned in to a state authority under state law, the disposal facility should retain a copy of the title.
Resubmission and Repayment of Improperly Received Funds
Is there a limit to the number of times an invoice may be resubmitted?
NO. There is no specified time limit; however, NHTSA will stop accepting resubmissions for a transaction that is determined not to qualify under the CARS Act.
Is there a way to return funds on an invoice that was already paid?
YES. Send a check in the proper amount payable to NHTSA, along with the information on the sale (the last 5 or 6 digit suffix of the dealership name as given by NHTSA for the CARS program AND the invoice number provided by NHTSA).
| Overnight to: | Regular Mail to: |
| DOT/NHTSA/CARS | DOT/NHTSA/CARS |
| c/o ESC, AMZ-300 | c/o ESC, AMC-300 |
| 6500 S. Macarthur Blvd. | PO Box 268911 |
| HQS Building, Room 181 | Oklahoma City, OK 73125 |
| Oklahoma City, OK 73169 |
For further information or assistance, email 9-AMC-NHTSA-CARS-AP-SUPPLIER@FAA.GOV .
Scrap Value and Crushing/Shredding of Trade-In Vehicle
Does the CARS Act or regulation require the dealer refund to the consumer the difference between the actual amount the dealer receives in scrap value of the trade-in vehicle or the best estimate amount previously given to the consumer if the actual value ends up being higher than the best estimate?
NO. The CARS Act and regulation require the dealer to disclose to a purchaser trading in an eligible vehicle the dealer’s best estimate of the scrap value of the trade-in vehicle. The rule allows the dealer to retain $50 of the estimated scrap value to reimburse the dealer for administrative costs. If the dealer makes its best estimate of the value of the trade-in vehicle and discloses that best estimate to the purchases prior to the sale, the CARS Act and regulation do not require the dealer to later refund the difference in price if it turns out the dealer subsequently is able to get a higher scrap value. However, the dealer’s estimate to the consumer must be made in good faith.
Are there certain parts of the trade-in vehicle that must be crushed or shredded?
YES. The chassis of the trade-in vehicle, including anything not removed from the chassis, the engine block and the drive train (unless the drive train is broken down so that the transmission, drive shaft and rear end are sold as separate parts) must be crushed or shredded by the disposal facility.
Is there a deadline by which a vehicle traded in under the CARS program must be crushed or shredded?
YES. The trade-in vehicle must be crushed or shredded within 180 days of delivery of the vehicle to the disposal facility.
May a crushed vehicle be transferred or resold by a disposal facility?
YES. After a vehicle has been crushed, it may be transferred or resold. For example, the crushed vehicle may be resold to a shredding facility.
Older FAQs
Categories
- Business-owned Vehicles
- Category 3 Vehicles
- Consumer
- Dealer
- Definitions
- Eligibility
- Family Vehicle
- Fees
- Fraud
- Fuel Economy/MPG
- Insurance
- Money/credits
- Motorcycles
- MSRP
- Multiple Vehicles
- New Vehicles
- NHTSA
- Rebates and Incentives
- Scrap Value
- Taxes
- Titles
- Trade-ins
- Vehicle Categories
Business-owned Vehicles
Yes, if that company purchases or leases the eligible new vehicle. The CARS final rule definition of a person under the program includes corporations, companies, associations, firms, partnerships, societies, joint stock companies, and individuals.
One of my customers owns a vehicle that has been titled and registered jointly with his wife, but insured under their company name. Can they trade it in under the CARS program for a new vehicle?
Yes, provided the vehicle has been continuously insured for one year prior to the date of trade in. The final rule stipulates that the insurance requirement is satisfied as long as the trade-in vehicle was insured, regardless of the identity of the individual holding the insurance policy.
Is the CARS program available to companies or business entities that want to improve their aging fleets?
Yes. However, the CARS Act specifies that not more than one credit may be issued to a single person (which includes corporations, companies, associations, firms, partnerships, societies, joint stock companies, and individuals), not more than one credit may be issued for joint registered owners of a single eligible trade-in vehicle, and only one credit under this program may be applied toward the purchase or lease of any single new vehicle. Consequently, a company or business entity may engage in only one CARS transaction.
Category 3 Vehicles
Can my customer trade her work truck in for a passenger automobile? She no longer needs her work truck and would like to drive a more fuel-efficient vehicle.
No. A “work truck” is a Category 3 truck, which may only be traded in for a Category 2 truck or another Category 3 truck. The amount of the credit for trading in a Category 3 truck is $3,500.
Consumer
No. Consumers do not need a voucher and are not required to sign up or enroll in this program. If you are a participating new car dealer, you will apply a credit, reducing the price of the new vehicle at the time of purchase or lease, provided the vehicle you sell or lease and the vehicle traded in meet the program requirements. You will then obtain reimbursement from the government.
No. The law requires the trade-in vehicle to be destroyed. The law requires you to disclose to the consumer an estimate of the scrap value of their trade-in vehicle.
The question of whether a consumer must pay State or local sales tax on the amount of the CARS program credit would depend on the sales tax law of each State or locality. Dealers should review the law of their respective States or consult a tax advisor to answer this question.
The CARS Act requires dealers to use the credit under the CARS program in addition to any rebates or discounts advertised by the dealer or offered by the new vehicle's manufacturer. You may not use the credit to offset these rebates and discounts.
Yes. Consumers can combine this with other State and Federal incentives, such as the hybrid vehicle credit. For information on this credit, refer consumers to http://www.fueleconomy.gov/Feg/tax_hybrid.shtml
No, the CARS Act specifies that not more than one credit may be issued to a single person, not more than one credit may be issued for joint registered owners of a single eligible trade-in vehicle, and that only one credit under this program may be applied toward the purchase or lease of any single new vehicle.
While dealers can charge normal types of fees, the CARS Act specifically prohibits you from charging a fee for selling or leasing a vehicle under the program.
Dealer
No. Consumers do not need a voucher and are not required to sign up or enroll in this program. If you are a participating new car dealer, you will apply a credit, reducing the price of the new vehicle at the time of purchase or lease, provided the vehicle you sell or lease and the vehicle traded in meet the program requirements. You will then obtain reimbursement from the government.
Yes. The base MSRP or price on the Monroney Label affixed to the vehicle before any dealer accessories, optional equipment, taxes, or destination charges, cannot exceed $45,000.
No. The program does not apply to the purchase of used vehicles.
No. The law requires the trade-in vehicle to be destroyed. The law requires you to disclose to the consumer an estimate of the scrap value of their trade-in vehicle.
The CARS Act applies to new vehicles. Thus, used vehicles do not qualify under the program. Eligible new vehicles that meet the requirements of the program are listed on www.cars.gov.
The CARS Act requires dealers to use the credit under the CARS program in addition to any rebates or discounts advertised by the dealer or offered by the new vehicle's manufacturer. You may not use the credit to offset these rebates and discounts.
Yes. Consumers can combine this with other State and Federal incentives, such as the hybrid vehicle credit. For information on this credit, refer consumers to http://www.fueleconomy.gov/Feg/tax_hybrid.shtml
While dealers can charge normal types of fees, the CARS Act specifically prohibits you from charging a fee for selling or leasing a vehicle under the program.
The CARS Act requires that the trade-in vehicle be crushed or shredded so that it will not be resold for use in the United States or elsewhere as an automobile. The entity crushing or shredding the vehicles in this manner will be allowed to sell some parts of the vehicle prior to crushing or shredding it, but these parts cannot include the engine or the drive train.
Definitions
The CARS Act divides the eligible vehicles into four groups: passenger automobiles; category 1 trucks; category 2 trucks; and category 3 trucks. NHTSA will soon publish a list of the vehicles that fall into these groups. For the present, we describe here the statutory definitions, give examples of types of vehicles that satisfy those definitions, and refer readers to the large table at the end of this notice.
The term passenger automobile and its definition are borrowed from the fuel economy statute. The definition excludes from that term (1) vehicles that NHTSA has determined are not manufactured primarily for transporting persons and (2) vehicles that are capable of off-highway operation. Vehicles not manufactured primarily for transporting persons include pickup trucks and certain vehicles that permit expanded use of the vehicle for cargo-carrying purposes. See 49 CFR 523.5(a). Under NHTSA's regulations (49 CFR 523.5(b)), there are two groups of vehicles with capability of off-highway operation. The first includes vehicles that have 4-wheel drive and have at least four out of five specified physical characteristics relating to ground clearance. The second includes vehicles that are rated at more than 6,000 pounds gross vehicle weight and have at least four out of five specified physical characteristics relating to ground clearance, but do not have 4-wheel drive. Passenger automobiles are what are commonly known as passenger cars.
A category 1 truck is a nonpassenger automobile. This category includes sport utility vehicles (SUVs), small and medium pickup trucks and small and medium passenger and cargo vans.
A category 2 truck is a large van or a large pickup truck, based upon the length of the wheelbase (more than 115 inches for pickup trucks and more than 124 inches for vans). Note: some pickup trucks and cargo vans exceeding these thresholds are treated as category 3 trucks instead of category 2 trucks.
A category 3 truck is a work truck and is rated between 8,500 and 10,000 pounds gross vehicle weight. This category includes very large pickup trucks (those with cargo beds 72 inches or more in length) and very large cargo vans.
By July 24, NHTSA will make available on an Internet website a comprehensive list of the trucks that fall into these categories and meet the requirements of the program.
Yes. The base MSRP or price on the Monroney Label affixed to the vehicle before any dealer accessories, optional equipment, taxes, or destination charges, cannot exceed $45,000.
My customer wants to trade in a vehicle with a combined “Estimated New MPG” that does not qualify it as a trade-in under CARS. The vehicle is a dual-fueled vehicle, and the combined MPG for gasoline is greater than 18, but on the combined MPG for E-85 is less than 18. Will this vehicle qualify under the CARS program as a trade-in?
No. The final rule specifies that the fuel economy rating must be based on the combined MPG for gasoline. The final rule also defines the rating as the number posted under the words “Estimated New EPA MPG” and above the word “combined” for vehicles of model years 1984-2007, and as the number posted under the words “NEW EPA MPG” and above the word “Combined” for model year 2008-present.
Eligibility
There are several requirements.
In general, the trade-in vehicle must
- have been manufactured less than 25 years before the date of the trade in
- have a "new" combined city/highway fuel economy of 18 miles per gallon or less
- be in drivable condition
- be continuously insured and registered to the same owner for the full year preceding the trade in
- The trade-in vehicle must have been manufactured not earlier than 25 years before the date of trade in and, in the case of a category 3 truck, must also have been manufactured not later than model year 2001
Under the program, consumers may purchase a new vehicle or lease a new vehicle, provided the lease period for the new vehicle is at least five years.
No. The program does not apply to the purchase of used vehicles.
The CARS Act applies to new vehicles. Thus, used vehicles do not qualify under the program. Eligible new vehicles that meet the requirements of the program are listed on www.cars.gov.
A work truck, which is called a category 3 truck under the CARS Act, is subject to special rules. Work trucks are not rated for fuel economy by the EPA. Thus, the eligibility of work trucks for the program does not depend on combined fuel economy. Instead, work trucks may only be traded in under the program if they were manufactured not later than model year 2001 and not earlier than 25 years before the date of the trade in. In addition, work trucks may only be traded in for the purchase of a category 2 truck or another category 3 truck that is of similar size or smaller than the traded-in vehicle. Finally, the Act provides only for a $3,500 credit for trading in a work truck.
The CARS Act limits the amount of funds that can be used to provide credits for purchases or leases of work trucks. Only 7.5 percent of the funds appropriated for the program may be used for credits for work trucks. Once that limit is reached, NHTSA will stop making payments for these transactions. NHTSA will keep the public informed as to the funds that remain available for these credits.
No, the CARS Act specifies that not more than one credit may be issued to a single person, not more than one credit may be issued for joint registered owners of a single eligible trade-in vehicle, and that only one credit under this program may be applied toward the purchase or lease of any single new vehicle.
The CARS Act requires that the trade-in vehicle be crushed or shredded so that it will not be resold for use in the United States or elsewhere as an automobile. The entity crushing or shredding the vehicles in this manner will be allowed to sell some parts of the vehicle prior to crushing or shredding it, but these parts cannot include the engine or the drive train.
Yes, if that company purchases or leases the eligible new vehicle. The CARS final rule definition of a person under the program includes corporations, companies, associations, firms, partnerships, societies, joint stock companies, and individuals.
One of my customers owns a vehicle that has been titled and registered jointly with his wife, but insured under their company name. Can they trade it in under the CARS program for a new vehicle?
Yes, provided the vehicle has been continuously insured for one year prior to the date of trade in. The final rule stipulates that the insurance requirement is satisfied as long as the trade-in vehicle was insured, regardless of the identity of the individual holding the insurance policy.
Is the CARS program available to companies or business entities that want to improve their aging fleets?
Yes. However, the CARS Act specifies that not more than one credit may be issued to a single person (which includes corporations, companies, associations, firms, partnerships, societies, joint stock companies, and individuals), not more than one credit may be issued for joint registered owners of a single eligible trade-in vehicle, and only one credit under this program may be applied toward the purchase or lease of any single new vehicle. Consequently, a company or business entity may engage in only one CARS transaction.
My customer wants to trade in a vehicle with a combined “Estimated New MPG” that does not qualify it as a trade-in under CARS. The vehicle is a dual-fueled vehicle, and the combined MPG for gasoline is greater than 18, but on the combined MPG for E-85 is less than 18. Will this vehicle qualify under the CARS program as a trade-in?
No. The final rule specifies that the fuel economy rating must be based on the combined MPG for gasoline. The final rule also defines the rating as the number posted under the words “Estimated New EPA MPG” and above the word “combined” for vehicles of model years 1984-2007, and as the number posted under the words “NEW EPA MPG” and above the word “Combined” for model year 2008-present.
One of my customers recently went through a divorce. She and her husband jointly owned the car for more than six years, but she recently changed the title over to her name. Would she be able to trade that car in as part of a CARS transaction?
Changes in ownership due to death of a co-owner or divorce do not interrupt the continuity of ownership, provided the purchaser has been shown as an owner for at least one year prior to the transaction. The purchaser of the new vehicle must also certify that the trade-in vehicle has been continuously registered for the entire period.
My customer is driving a car that has been registered, titled and insured in her father’s name; he is a disabled senior citizen and no longer drives. Can she use it to buy a new vehicle in the CARS program if her father signs the title over to her?
This transaction would only qualify for a CARS credit if the owner of the trade-in vehicle was also one of the purchasers of the new vehicle. The CARS program requires that the trade-in vehicle be registered to and owned by the same person purchasing or leasing the new vehicle. Additionally, the purchaser must certify, in writing, that the vehicle has been insured continuously, and that it is in drivable condition, among other things. The purchaser must be able to make these certifications from first-hand knowledge.
My customer’s relative recently passed away and left her a vehicle in the will. It was titled, registered, and insured in the relative’s name until a few months ago. Can my customer trade it in under the CARS program?
No. The CARS program requires that the trade-in vehicle be registered to and owned by the same person purchasing or leasing the new vehicle. Additionally, the purchaser must certify, in writing, that the vehicle has been insured continuously, and that it is in drivable condition, among other things. The purchaser must be able to make these certifications from first-hand knowledge.
What if the purchaser’s name on the title or registration of the new car is not identical to the purchaser’s name on the new vehicle because the purchaser recently changed her name?
If a purchaser legally changed her name, the dealer should submit to NHTSA proof of the name change. Such proof would consist of a marriage certificate or a court judgment indicating the name change.
My state does not require insurance, and my customer has none on the trade-in vehicle vehicle. Does this disqualify the vehicle from being traded in under the CARS program?
No, provided the trade-in vehicle is registered either in New Hampshire or Wisconsin. These two states do not require insurance under State law.
My customers are a husband and wife whose car has been titled and registered jointly, but insured under their son’s name, as he has been paying the policy while using the vehicle. Can they trade it in under the CARS program for new vehicle?
Yes. As long as all the other requirements of a car transaction are met, your customers can use this vehicle as a trade-in under the CARS program. The insurance requirement is satisfied as long as the trade-in vehicle was insured, regardless of the identity of the individual holding the insurance policy.
My customer has a qualifying vehicle that he would like to trade in, but he also has another vehicle he can trade in at the same time to defray the cost of the new vehicle. If I am willing to accept the second vehicle, will my customer still get the credit for the first?
As long as the requirements are met for a CARS transaction, the deal you negotiate with the purchaser regarding the payment for the remaining cost of the car does not affect his eligibility. However, a purchaser can only receive one credit under the CARS program.
Can my customer trade her work truck in for a passenger automobile? She no longer needs her work truck and would like to drive a more fuel-efficient vehicle.
No. A “work truck” is a Category 3 truck, which may only be traded in for a Category 2 truck or another Category 3 truck. The amount of the credit for trading in a Category 3 truck is $3,500.
No. Under the CARS Act, motorcycles are not eligible, either as trade-ins or for purchase or lease.
Family Vehicle
One of my customers recently went through a divorce. She and her husband jointly owned the car for more than six years, but she recently changed the title over to her name. Would she be able to trade that car in as part of a CARS transaction?
Changes in ownership due to death of a co-owner or divorce do not interrupt the continuity of ownership, provided the purchaser has been shown as an owner for at least one year prior to the transaction. The purchaser of the new vehicle must also certify that the trade-in vehicle has been continuously registered for the entire period.
My customer is driving a car that has been registered, titled and insured in her father’s name; he is a disabled senior citizen and no longer drives. Can she use it to buy a new vehicle in the CARS program if her father signs the title over to her?
This transaction would only qualify for a CARS credit if the owner of the trade-in vehicle was also one of the purchasers of the new vehicle. The CARS program requires that the trade-in vehicle be registered to and owned by the same person purchasing or leasing the new vehicle. Additionally, the purchaser must certify, in writing, that the vehicle has been insured continuously, and that it is in drivable condition, among other things. The purchaser must be able to make these certifications from first-hand knowledge.
My customer’s relative recently passed away and left her a vehicle in the will. It was titled, registered, and insured in the relative’s name until a few months ago. Can my customer trade it in under the CARS program?
No. The CARS program requires that the trade-in vehicle be registered to and owned by the same person purchasing or leasing the new vehicle. Additionally, the purchaser must certify, in writing, that the vehicle has been insured continuously, and that it is in drivable condition, among other things. The purchaser must be able to make these certifications from first-hand knowledge.
My customers are a husband and wife whose car has been titled and registered jointly, but insured under their son’s name, as he has been paying the policy while using the vehicle. Can they trade it in under the CARS program for new vehicle?
Yes. As long as all the other requirements of a car transaction are met, your customers can use this vehicle as a trade-in under the CARS program. The insurance requirement is satisfied as long as the trade-in vehicle was insured, regardless of the identity of the individual holding the insurance policy.
Fees
While dealers can charge normal types of fees, the CARS Act specifically prohibits you from charging a fee for selling or leasing a vehicle under the program.
Fraud
The CARS Act requires that the trade-in vehicle be crushed or shredded so that it will not be resold for use in the United States or elsewhere as an automobile. The entity crushing or shredding the vehicles in this manner will be allowed to sell some parts of the vehicle prior to crushing or shredding it, but these parts cannot include the engine or the drive train.
Fuel Economy/MPG
YES. In conjunction with the official launch of the CARS program on July 24, 2009, the fuel economy data was updated on the fueleconomy.gov and cars.gov websites. This information was updated to create more precise data for use in the new CARS program (to four decimal places). Previously available mileage data on fueleconomy.gov was solely intended to provide estimated MPG ratings to guide consumers' vehicle purchases.
Of the 30,000 vehicle model types spanning 25 years, the result of converting to the more precise data meant that an additional 86 model types gained eligibility while 78 no longer qualify.
In 2006, EPA published new test methods for calculating fuel economy estimates that are posted on window stickers of new cars and trucks and on the website, fueleconomy.gov. These new methods, which took effect with model year 2008 vehicles, brought the miles per gallon (mpg) estimates closer to consumers' actual fuel economy by including factors such as high speeds, quicker accelerations, air conditioning use, and driving in cold temperatures.
To make comparing mpg estimates for vehicles easier for consumers, we added a feature on fueleconomy.gov to convert the older label values for model year 2007 and earlier vehicles to the new "2008 Label" format.
Some of these conversions were based on the original rounded fuel economy values, and were updated to be more precise in conjunction with the official launch of the CARS program.
There are several requirements.
In general, the trade-in vehicle must
- have been manufactured less than 25 years before the date of the trade in
- have a "new" combined city/highway fuel economy of 18 miles per gallon or less
- be in drivable condition
- be continuously insured and registered to the same owner for the full year preceding the trade in
- The trade-in vehicle must have been manufactured not earlier than 25 years before the date of trade in and, in the case of a category 3 truck, must also have been manufactured not later than model year 2001
Click on “MPG Ratings” along the top navigation of this page. Enter the model year of the vehicle, the make, and then the model. Under the words "ESTIMATED NEW EPA MPG" in the red banner, there is a red number with the word "COMBINED" under it. That is the new combined city/highway fuel economy for that vehicle
Are trucks included in the CARS program? Some trucks don’t have fuel economy ratings. Are trucks eligible trade-in vehicles?
Maybe. Some trucks, such as work trucks, were never rated for fuel economy. For these trucks, age is the only criterion for determining whether they are eligible trade-in vehicles. If a consumer has one of these trucks, it must be from model year 2001 or earlier, but also the date of manufacture must be less than 25 years from the date the trade-in date, to be an eligible trade-in vehicle. Other restrictions may also apply.
A work truck, which is called a category 3 truck under the CARS Act, is subject to special rules. Work trucks are not rated for fuel economy by the EPA. Thus, the eligibility of work trucks for the program does not depend on combined fuel economy. Instead, work trucks may only be traded in under the program if they were manufactured not later than model year 2001 and not earlier than 25 years before the date of the trade in. In addition, work trucks may only be traded in for the purchase of a category 2 truck or another category 3 truck that is of similar size or smaller than the traded-in vehicle. Finally, the Act provides only for a $3,500 credit for trading in a work truck.
The CARS Act limits the amount of funds that can be used to provide credits for purchases or leases of work trucks. Only 7.5 percent of the funds appropriated for the program may be used for credits for work trucks. Once that limit is reached, NHTSA will stop making payments for these transactions. NHTSA will keep the public informed as to the funds that remain available for these credits.
Insurance
My state does not require insurance, and my customer has none on the trade-in vehicle vehicle. Does this disqualify the vehicle from being traded in under the CARS program?
No, provided the trade-in vehicle is registered either in New Hampshire or Wisconsin. These two states do not require insurance under State law.
My customers are a husband and wife whose car has been titled and registered jointly, but insured under their son’s name, as he has been paying the policy while using the vehicle. Can they trade it in under the CARS program for new vehicle?
Yes. As long as all the other requirements of a car transaction are met, your customers can use this vehicle as a trade-in under the CARS program. The insurance requirement is satisfied as long as the trade-in vehicle was insured, regardless of the identity of the individual holding the insurance policy.
Money/credits
The value of the credit for the purchase or lease of a new passenger car depends upon the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle that is purchased or leased. If the new vehicle has a combined fuel economy that is at least 4, but less than 10, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new vehicle has a combined fuel economy value that is at least 10 miles per gallon higher than the traded-in vehicle, the credit is $4,500.
The value of the credit given for the purchase or lease of a category 1 or 2 truck also generally depends on the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle that is purchased or leased. If the new vehicle is a category 1 truck that has a combined fuel economy value that is at least 2, but less than 5, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new category 1 truck has a combined fuel economy value that is at least 5 miles per gallon higher than the traded-in vehicle, the credit is $4,500.
If both the new vehicle and the traded-in vehicle are category 2 trucks and the combined fuel economy value of the new vehicle is at least 1, but less than 2, miles per gallon higher than the combined fuel economy value of the traded in vehicle, the credit is $3,500. If both the new vehicle and the traded-in vehicle are category 2 trucks and the combined fuel economy of the new vehicle is at least 2 miles per gallon higher than that of the traded-in vehicle, the credit is $4,500. A $3,500 credit applies to the purchase or lease of a category 2 truck if the trade-in vehicle is a category 3 (work) truck that was manufactured not later than model year 2001, but not earlier than 25 years before the date of the trade in.
Is the CARS program available to companies or business entities that want to improve their aging fleets?
Yes. However, the CARS Act specifies that not more than one credit may be issued to a single person (which includes corporations, companies, associations, firms, partnerships, societies, joint stock companies, and individuals), not more than one credit may be issued for joint registered owners of a single eligible trade-in vehicle, and only one credit under this program may be applied toward the purchase or lease of any single new vehicle. Consequently, a company or business entity may engage in only one CARS transaction.
Motorcycle
No. Under the CARS Act, motorcycles are not eligible, either as trade-ins or for purchase or lease.
MSRP
Yes. The base MSRP or price on the Monroney Label affixed to the vehicle before any dealer accessories, optional equipment, taxes, or destination charges, cannot exceed $45,000.
Multiple Vehicles
My customer has a qualifying vehicle that he would like to trade in, but he also has another vehicle he can trade in at the same time to defray the cost of the new vehicle. If I am willing to accept the second vehicle, will my customer still get the credit for the first?
As long as the requirements are met for a CARS transaction, the deal you negotiate with the purchaser regarding the payment for the remaining cost of the car does not affect his eligibility. However, a purchaser can only receive one credit under the CARS program.
New Vehicles
Under the program, consumers may purchase a new vehicle or lease a new vehicle, provided the lease period for the new vehicle is at least five years.
No. The program does not apply to the purchase of used vehicles.
The CARS Act applies to new vehicles. Thus, used vehicles do not qualify under the program. Eligible new vehicles that meet the requirements of the program are listed on www.cars.gov.
Can my customer trade her work truck in for a passenger automobile? She no longer needs her work truck and would like to drive a more fuel-efficient vehicle.
No. A “work truck” is a Category 3 truck, which may only be traded in for a Category 2 truck or another Category 3 truck. The amount of the credit for trading in a Category 3 truck is $3,500.
NHTSA
No. Consumers do not need a voucher and are not required to sign up or enroll in this program. If you are a participating new car dealer, you will apply a credit, reducing the price of the new vehicle at the time of purchase or lease, provided the vehicle you sell or lease and the vehicle traded in meet the program requirements. You will then obtain reimbursement from the government.
Rebates and Incentives
The CARS Act requires dealers to use the credit under the CARS program in addition to any rebates or discounts advertised by the dealer or offered by the new vehicle's manufacturer. You may not use the credit to offset these rebates and discounts.
Yes. Consumers can combine this with other State and Federal incentives, such as the hybrid vehicle credit. For information on this credit, refer consumers to http://www.fueleconomy.gov/Feg/tax_hybrid.shtml
Scrap Value
No. The law requires the trade-in vehicle to be destroyed. The law requires you to disclose to the consumer an estimate of the scrap value of their trade-in vehicle.
YES. The law requires the dealer to disclose to the customer the best estimate of the scrap value of the trade-in at the time of the transaction
Taxes
The question of whether a consumer must pay State or local sales tax on the amount of the CARS program credit would depend on the sales tax law of each State or locality. Dealers should review the law of their respective States or consult a tax advisor to answer this question.
Titles
Yes, if that company purchases or leases the eligible new vehicle. The CARS final rule definition of a person under the program includes corporations, companies, associations, firms, partnerships, societies, joint stock companies, and individuals.
One of my customers owns a vehicle that has been titled and registered jointly with his wife, but insured under their company name. Can they trade it in under the CARS program for a new vehicle?
Yes, provided the vehicle has been continuously insured for one year prior to the date of trade in. The final rule stipulates that the insurance requirement is satisfied as long as the trade-in vehicle was insured, regardless of the identity of the individual holding the insurance policy.
One of my customers recently went through a divorce. She and her husband jointly owned the car for more than six years, but she recently changed the title over to her name. Would she be able to trade that car in as part of a CARS transaction?
Changes in ownership due to death of a co-owner or divorce do not interrupt the continuity of ownership, provided the purchaser has been shown as an owner for at least one year prior to the transaction. The purchaser of the new vehicle must also certify that the trade-in vehicle has been continuously registered for the entire period.
My customer is driving a car that has been registered, titled and insured in her father’s name; he is a disabled senior citizen and no longer drives. Can she use it to buy a new vehicle in the CARS program if her father signs the title over to her?
This transaction would only qualify for a CARS credit if the owner of the trade-in vehicle was also one of the purchasers of the new vehicle. The CARS program requires that the trade-in vehicle be registered to and owned by the same person purchasing or leasing the new vehicle. Additionally, the purchaser must certify, in writing, that the vehicle has been insured continuously, and that it is in drivable condition, among other things. The purchaser must be able to make these certifications from first-hand knowledge.
My customer’s relative recently passed away and left her a vehicle in the will. It was titled, registered, and insured in the relative’s name until a few months ago. Can my customer trade it in under the CARS program?
No. The CARS program requires that the trade-in vehicle be registered to and owned by the same person purchasing or leasing the new vehicle. Additionally, the purchaser must certify, in writing, that the vehicle has been insured continuously, and that it is in drivable condition, among other things. The purchaser must be able to make these certifications from first-hand knowledge.
What if the purchaser’s name on the title or registration of the new car is not identical to the purchaser’s name on the new vehicle because the purchaser recently changed her name?
If a purchaser legally changed her name, the dealer should submit to NHTSA proof of the name change. Such proof would consist of a marriage certificate or a court judgment indicating the name change.
My customers are a husband and wife whose car has been titled and registered jointly, but insured under their son’s name, as he has been paying the policy while using the vehicle. Can they trade it in under the CARS program for new vehicle?
Yes. As long as all the other requirements of a car transaction are met, your customers can use this vehicle as a trade-in under the CARS program. The insurance requirement is satisfied as long as the trade-in vehicle was insured, regardless of the identity of the individual holding the insurance policy.
Trade-ins
There are several requirements.
In general, the trade-in vehicle must
- have been manufactured less than 25 years before the date of the trade in
- have a "new" combined city/highway fuel economy of 18 miles per gallon or less
- be in drivable condition
- be continuously insured and registered to the same owner for the full year preceding the trade in
- The trade-in vehicle must have been manufactured not earlier than 25 years before the date of trade in and, in the case of a category 3 truck, must also have been manufactured not later than model year 2001
Yes, if that company purchases or leases the eligible new vehicle. The CARS final rule definition of a person under the program includes corporations, companies, associations, firms, partnerships, societies, joint stock companies, and individuals.
One of my customers owns a vehicle that has been titled and registered jointly with his wife, but insured under their company name. Can they trade it in under the CARS program for a new vehicle?
Yes, provided the vehicle has been continuously insured for one year prior to the date of trade in. The final rule stipulates that the insurance requirement is satisfied as long as the trade-in vehicle was insured, regardless of the identity of the individual holding the insurance policy.
Vehicle Categories
Are trucks included in the CARS program? Some trucks don’t have fuel economy ratings. Are trucks eligible trade-in vehicles?
Maybe. Some trucks, such as work trucks, were never rated for fuel economy. For these trucks, age is the only criterion for determining whether they are eligible trade-in vehicles. If a consumer has one of these trucks, it must be from model year 2001 or earlier, but also the date of manufacture must be less than 25 years from the date the trade-in date, to be an eligible trade-in vehicle. Other restrictions may also apply.
The CARS Act divides the eligible vehicles into four groups: passenger automobiles; category 1 trucks; category 2 trucks; and category 3 trucks. NHTSA will soon publish a list of the vehicles that fall into these groups. For the present, we describe here the statutory definitions, give examples of types of vehicles that satisfy those definitions, and refer readers to the large table at the end of this notice.
The term “passenger automobile” and its definition are borrowed from the fuel economy statute. The definition excludes from that term (1) vehicles that NHTSA has determined are not manufactured primarily for transporting persons and (2) vehicles that are capable of off-highway operation. Vehicles not manufactured primarily for transporting persons include pickup trucks and certain vehicles that permit expanded use of the vehicle for cargo-carrying purposes. See 49 CFR 523.5(a). Under NHTSA's regulations (49 CFR 523.5(b)), there are two groups of vehicles with capability of off-highway operation. The first includes vehicles that have 4-wheel drive and have at least four out of five specified physical characteristics relating to ground clearance. The second includes vehicles that are rated at more than 6,000 pounds gross vehicle weight and have at least four out of five specified physical characteristics relating to ground clearance, but do not have 4-wheel drive. Passenger automobiles are what are commonly known as passenger cars.
A category 1 truck is a nonpassenger automobile. This category includes sport utility vehicles (SUVs), small and medium pickup trucks and small and medium passenger and cargo vans.
A category 2 truck is a large van or a large pickup truck, based upon the length of the wheelbase (more than 115 inches for pickup trucks and more than 124 inches for vans). Note: some pickup trucks and cargo vans exceeding these thresholds are treated as category 3 trucks instead of category 2 trucks.
A category 3 truck is a work truck and is rated between 8,500 and 10,000 pounds gross vehicle weight. This category includes very large pickup trucks (those with cargo beds 72 inches or more in length) and very large cargo vans.
By July 24, NHTSA will make available on an Internet website a comprehensive list of the trucks that fall into these categories and meet the requirements of the program.
The value of the credit for the purchase or lease of a new passenger car depends upon the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle that is purchased or leased. If the new vehicle has a combined fuel economy that is at least 4, but less than 10, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new vehicle has a combined fuel economy value that is at least 10 miles per gallon higher than the traded-in vehicle, the credit is $4,500.
The value of the credit given for the purchase or lease of a category 1 or 2 truck also generally depends on the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle that is purchased or leased. If the new vehicle is a category 1 truck that has a combined fuel economy value that is at least 2, but less than 5, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new category 1 truck has a combined fuel economy value that is at least 5 miles per gallon higher than the traded-in vehicle, the credit is $4,500.
If both the new vehicle and the traded-in vehicle are category 2 trucks and the combined fuel economy value of the new vehicle is at least 1, but less than 2, miles per gallon higher than the combined fuel economy value of the traded in vehicle, the credit is $3,500. If both the new vehicle and the traded-in vehicle are category 2 trucks and the combined fuel economy of the new vehicle is at least 2 miles per gallon higher than that of the traded-in vehicle, the credit is $4,500. A $3,500 credit applies to the purchase or lease of a category 2 truck if the trade-in vehicle is a category 3 (work) truck that was manufactured not later than model year 2001, but not earlier than 25 years before the date of the trade in.
A work truck, which is called a category 3 truck under the CARS Act, is subject to special rules. Work trucks are not rated for fuel economy by the EPA. Thus, the eligibility of work trucks for the program does not depend on combined fuel economy. Instead, work trucks may only be traded in under the program if they were manufactured not later than model year 2001 and not earlier than 25 years before the date of the trade in. In addition, work trucks may only be traded in for the purchase of a category 2 truck or another category 3 truck that is of similar size or smaller than the traded-in vehicle. Finally, the Act provides only for a $3,500 credit for trading in a work truck.
The CARS Act limits the amount of funds that can be used to provide credits for purchases or leases of work trucks. Only 7.5 percent of the funds appropriated for the program may be used for credits for work trucks. Once that limit is reached, NHTSA will stop making payments for these transactions. NHTSA will keep the public informed as to the funds that remain available for these credits.
Can my customer trade her work truck in for a passenger automobile? She no longer needs her work truck and would like to drive a more fuel-efficient vehicle.
No. A “work truck” is a Category 3 truck, which may only be traded in for a Category 2 truck or another Category 3 truck. The amount of the credit for trading in a Category 3 truck is $3,500.
How do I determine whether the vehicle I want to purchase or lease is a passenger automobile or a category 1, 2, or 3 truck?
The CARS Act divides the eligible vehicles into four groups: passenger automobiles; category 1 trucks; category 2 trucks; and category 3 trucks. NHTSA will soon publish a list of the vehicles that fall into these groups. For the present, we describe here the statutory definitions, give examples of types of vehicles that satisfy those definitions, and refer readers to the large table at the end of this notice.
The best way to determine the classification of your vehicle is to visit http://www.fueleconomy.gov/feg/CarsSearchIntro.shtml. . Be sure to have the following information accessible as this link will ask you to enter it in order to determine the classification of your vehicle:
- Gross Vehicle Weight Rating (GVWR)
- Model year
- Vehicle make and model
- Type of engine and transmission
- Fuel type (gasoline or diesel)
- Drive type (2 WD or 4WD)
- Whether your vehicle has a supercharger or turbocharger
As background, the term “passenger automobile” and its definition are borrowed from the fuel economy statute. The definition excludes from that term (1) vehicles that NHTSA has determined are not manufactured primarily for transporting persons and (2) vehicles that are capable of off-highway operation. Vehicles not manufactured primarily for transporting persons include pickup trucks and certain vehicles that permit expanded use of the vehicle for cargo-carrying purposes. See 49 CFR 523.5(a). Under NHTSA's regulations (49 CFR 523.5(b)), there are two groups of vehicles with capability of off-highway operation. The first includes vehicles that have 4-wheel drive and have at least four out of five specified physical characteristics relating to ground clearance. The second includes vehicles that are rated at more than 6,000 pounds gross vehicle weight and have at least four out of five specified physical characteristics relating to ground clearance, but do not have 4-wheel drive. Passenger automobiles are what are commonly known as passenger cars.
A category 1 truck is a nonpassenger automobile. This category includes sport utility vehicles (SUVs), small and medium pickup trucks and small and medium passenger and cargo vans.
A category 2 truck is a large van or a large pickup truck, based upon the length of the wheelbase (more than 115 inches for pickup trucks and more than 124 inches for vans). If the vehicle nameplate contains a variety of wheelbases, the size classification is determined by considering only the shortest wheelbase produced. Note: some pickup trucks and cargo vans exceeding these thresholds are treated as category 3 trucks instead of category 2 trucks.
A category 3 truck is a work truck and is rated between 8,500 and 10,000 pounds gross vehicle weight. This category includes very large pickup trucks (those with cargo beds 72 inches or more in length) and very large cargo vans.
