Helpful Q&As for Consumers
Categories
- CARS Program Basic Questions
- Trade-In Eligibility Questions
- New Vehicle Eligibility Questions
- Contingency Questions
- Fuel Economy and Vehicle Classification Questions
- Rebate, Incentive and Tax Questions
- Vehicle Registration Questions
CARS Program Basic Questions
Do I need a voucher or to sign up to participate in this program?
NO. Participating dealers will apply a credit, reducing the price you pay at the time of your qualifying purchase or lease. The government will then reimburse the dealer.
Do I need to bring anything to the dealership in order to participate in the CARS program?
YES. Bring the following items:
- Personal state identification (Driver's License)
- The trade-in vehicle
- The title of the trade-in vehicle
- Proof of continuous insurance for the past 12 months (may be consecutive insurance cards with no gap in the dates or a letter on insurance company letterhead indicating consecutive insurance)
- Proof of continuous registration for the past 12 months
May I receive or use more than one credit under the CARS program?
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 only one credit under this program may be applied toward the purchase or lease of any single new vehicle.
Is there a set amount for the CARS Credit?
YES. The amount of the credit is $3,500 or $4,500, and generally depends on the type of vehicle you purchase and the difference in fuel economy between the purchased vehicle and the trade-in vehicle. Different requirements apply for work trucks, which are large trucks defined by statute and unrated for fuel economy.
Are there different CARS credit amounts for the purchase or lease of a new passenger car?
YES. The amount depends on the fuel economy of the new passenger car and the fuel economy of the trade-in vehicle. 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.
Are there different CARS credit amounts for the purchase or lease of a new van, pickup truck or SUV?
YES. 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.
Are there special rules for work trucks?
YES. 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.
Is there a way for me to determine which dealerships are participating in the CARS program?
YES. The CARS program is limited to dealers that register with NHTSA. You can access the list of registered dealers by visiting the following portion of our website: http://www.cars.gov/dealer-locator
How do I find out when my vehicle was manufactured?
The month and year of manufacture (e.g., 1-96 (January 1996)) appear on the safety standard certification label that is located on the frame or edge of the driver's door in most vehicles.
I just recently traded in my old car for a new vehicle. Can I go back to the dealer and apply for a credit?
If you purchased the vehicle before July 1 you are not eligible for credit. If you purchased the new vehicle on or after July 1, 2009 you may be eligible for credit. Please contact your dealer to see if you meet the eligibility requirements.
What happens to the vehicle I trade in?
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.
Trade-In Eligibility Questions
Are there special requirements for my trade-in vehicle?
YES. Your trade-in vehicle must:
- have been manufactured less than 25 years before the date you trade it in and, in the case of a category 3 vehicle, must also have been manufactured not later than model year 2001
- 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
Is it okay to accept a title with the brand/stamp “salvage” on it if the vehicle has been registered and insured in accordance with CARS requirements?
YES.
Is it okay to accept a title and registration that have different names due to a name change (including marriage, divorce)?
YES.
Note: The miscellaneous documents section of the CARS application submitted by the dealer must include a copy of the marriage certificate or court judgment or the transaction will be rejected.
Is it okay if a husband and wife are jointly registered and titled on an eligible trade-in vehicle and only ONE of them wants to be on the new vehicle’s title?
YES.
Is it okay if only one of a couple (husband or wife, father or child) is registered and titled on an eligible trade-in vehicle and BOTH want to be on the new vehicle’s title?
YES.
Is it okay if one spouse (husband) is registered and titled on a vehicle and the other spouse (wife) wants to be titled on the new vehicle without the husband?
NO.
I have a vehicle registered in one name and titled in another and this is allowed under my state’s law. I would like to participate in the CARS program, can I?
NO. The statute defines "eligible trade in vehicle" to be, among other things, one that has been continuously insured and registered to the same owner for a period of not less than one year. The regulation requires the registered owner to be one person who appears on BOTH the registration and title of the vehicle.
Is a vehicle eligible if, due to death of the sole owner, the vehicle had to be re-titled and less than 12 months ago?
NO.
May I participate if my spouse died and I am the surviving spouse and have not had time to retitle the vehicle in just my name?
If both the deceased and the surviving spouse were on the title before = YES, you may participate.
If only the deceased spouse was on the title before = NO, you may not participate.
Are state and local governments or trusts eligible to participate?
NO. Participation is limited by the regulations to individuals, corporations, companies, associations, firms, partnerships, societies, and joint stock companies
I have an SUV with a Gross Vehicle Weight Rating (GVWR) over 8500 lbs. I thought this vehicle was a category 1, but the website directed me to a list of category 3 vehicles. Can I still participate in the CARS program?
YES. SUVs with a GVWR over 8500 lbs. are not rated for fuel economy by EPA. Therefore, these vehicles are treated as category 3 trucks and must have a model year of 2001 or older. The new vehicle must come from either category 2 or 3. For more information, please click on the "MPG rating" tab at the home page of www.cars.gov.
I have an SUV with a Gross Vehicle Weight Rating (GVWR) under 8500 lbs. and a curb weight over 6000 lbs. I thought this vehicle was a category 1, but the website does not have a fuel economy rating for it. Can I still participate in the CARS program?
YES. SUVs with a GVWR under 8500 lbs. and a curb weight over 6000 lbs. are not rated for fuel economy by EPA. Therefore, these vehicles are treated as category 3 trucks and must have a model year of 2001 or older (but manufactured no earlier than 25 years prior to the date the vehicle is traded in). The special rules relevant to the trade-in of category 3 trucks apply.
Note: When using the comparison tool on our website, your trade-in vehicle will not appear.
I am in the military and am currently deployed on active duty abroad. I have an eligible trade-in vehicle and would like to participate in the CARS program and buy a new vehicle. I have executed a power of attorney that allows another individual to sign all required documents on my behalf. May I participate?
YES. Note: A copy of the Power of Attorney must be brought to the dealership and included as a Miscellaneous attachment by the dealer in the CARS application for reimbursement.
I am in the military and my registration lapsed while I was deployed for active duty abroad. I am now back and would like to participate in the CARS program. My state gives a grace period for me to correct the lapsed registration because I was deployed. May I participate in the CARS program?
YES.
Note: If your state allows military persons returning from active duty a grace period, you may participate, but you must have an up-to-date registration. You must bring your registration up to date before you come to the dealership.
New Vehicle Eligibility Questions
May I purchase a used vehicle?
NO.
May I purchase a foreign vehicle?
YES. You may purchase a foreign or domestic vehicle.
May I lease a new vehicle?
YES. You may lease or purchase a new vehicle.
Note: The duration of the lease must be 5 or more years.
Is there a cap on the price of the new vehicle I select?
YES. The new vehicle base MSRP - the price on the Monroney label, before any features, options, taxes, or destination charges are added to the price, may not exceed $45,000.
Is it okay to trade in my current vehicle and buy a new motorcycle?
NO. Motorcycles are not eligible, either as trade-ins or for purchase or lease.
Is it okay to trade in a large work truck or other category 3 vehicles for a category 1 vehicle or passenger car?
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 of equal or smaller size. The amount of the credit for trading in a Category 3 truck is $3,500.
Contingency Questions
Generally
A dealer has demanded that I sign an agreement that requires me to pay the dealer the amount of the CARS program credit if the dealer's CARS program credit application is rejected. Am I required to agree to this?
NO. 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. (See specific questions/answers, below, for more details).
The dealer says that I should take my trade-in car home after I sign the purchase agreement for a new car under the CARS program, and that I can pick up my new car after the dealer is paid by the government. Can I do this?
NO. The dealer must take title to and possession of your trade-in vehicle in order to submit a credit for reimbursement under the CARS program. You may not keep possession of your old car.
Specifically
A dealer has demanded that I sign an agreement that requires me to pay the dealer if the credit application is rejected because I submit incorrect information regarding my name, residence address, driver's license number, or the title to my trade-in car. Am I required to agree to this?
NO. However, be aware that to participate in the CARS program you must certify under penalty of law that all information you provide is true. If your CARS program credit is denied because of a false statement made by you, the dealer may take action to recover the money or vehicle regardless of whether you sign such an agreement.
A dealer has demanded that I leave a signed check or credit card authorization in the amount of the CARS program credit that he will return to me if the credit application is approved, but keep if the credit application is rejected. Is the dealer allowed to do this?
NO. The dealer must reduce the price of the new vehicle by the credit amount. If a dealer has a check or credit card authorization given by you at the time of the sale, the dealer has not actually reduced the price as required by the CARS program. Take your trade-in to another dealer if a dealer makes this demand.
A dealer said he will wait to extend me the CARS program credit amount until after the dealer gets the money from the government. Is the dealer allowed to do this?
NO. The dealer must certify in its application for reimbursement that the dealer has already reduced the price of the new vehicle in the amount of the CARS program credit it requests
A dealer has included in the purchase agreement a requirement that I return the new car or pay the dealer the amount of the CARS program credit if the CARS program credit application is rejected. Do I have to sign this in order to participate in the CARS Program?
NO. You are not required to sign an agreement like this to participate in the CARS Program. However, you may agree to such a term, but your choice to agree is between you and the dealer.
Fuel Economy and Vehicle Classification Questions
Is there a way to determine the combined city/highway fuel economy of my trade-in vehicle?
YES. Go to http://www.fueleconomy.gov/feg/CarsSearchIntro.shtml and, after reading the information and gathering the necessary information about your trade-in vehicle, click on "I'm ready to begin!". Follow the prompts, which will ask for information about your trade-in vehicle. After entering in all of the necessary information, your combined fuel economy will be displayed next to the words "Combined MPG." The page will also display the vehicle category of the trade-in vehicle and whether it is potentially eligible for trade in under the CARS program. From this page, you may also click on "Select Replacement Vehicle" to choose an new vehicle to see whether that purchase would qualify for the CARS program.
I have a truck and cannot find the fuel economy rating. Can I participate in the CARS program?
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 you have 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 you trade it in, to be an eligible trade-in vehicle. Other restrictions may also apply.
Is there a reason fuel economy is important?
YES. Buying a fuel efficient vehicle is important because it can:
- Save you money -You can reduce fuel costs each year by choosing the most efficient vehicle that meets your needs.
- Reduce greenhouse gas emissions - Carbon dioxide (CO2) from burning gasoline and diesel contributes to global climate change. You can do your part to reduce climate change by reducing your carbon footprint.
- Improve energy security and reduce oil dependence costs - Our dependence on oil makes us vulnerable to oil market manipulation and price shocks.
- Increase energy sustainability - Oil is a non-renewable resource, and we cannot sustain our current rate of use indefinitely. Using it wisely now allows us time to find alternative technologies and fuels that will be more sustainable.
For more information on the importance of better fuel economy, go to http://www.fueleconomy.gov/feg/why.shtml. For the 2009 Fuel Economy Guide, go to http://www.fueleconomy.gov/feg/FEG2009.pdf.
Is there a reason the list of eligible cars changed on July 24, 2009?
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. 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.
Click here to view the list of eligible cars
Click here to view the list of ineligible cars
To search all vehicles, click the MPG Ratings tab at the top of the page
Is there a way to determine the classification of my trade-in vehicle and the vehicle I wish to purchase?
YES. The CARS Act divides the eligible vehicles into four groups: passenger automobiles, category 1 trucks, category 2 trucks and category 3 trucks. 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 available as this link will ask you to enter it 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” excludes: (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. Under NHTSA's regulations, 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) rated less than 8,500 pounds gross vehicle weight, 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.
Rebate, Incentive and Tax Questions
Do I get any money for my trade in vehicle in addition to the CARS credit?
YES. The law requires your trade-in vehicle be destroyed. The dealer must disclose to you the scrap value of your vehicle. The dealer is entitled to keep up to $50 of the scrap value for administrative fees. You are entitled to negotiate about who keeps the remaining scrap value. For example, you may use that money toward the price of your new car separate from the CARS credit.
Can dealers charge me a fee for buying or leasing a vehicle under the CARS program?
NO. While dealers can charge their normal types of fees, the CARS Act specifically prohibits dealers from charging a fee for purchasing or leasing a vehicle under the program. Please report any dealer who attempts to charge you a fee for participating in the CARS program to NHTSA and go to another dealer.
Can I combine the CARS credit with other government incentives?
YES. You can combine this with other State and Federal incentives, such as the hybrid vehicle credit. For information on this credit, go to http://www.fueleconomy.gov/Feg/tax_hybrid.shtml..
Is the credit subject to being taxed as income to the consumers that participate in the program?
NO. The CARS Act expressly provides that the credit is not income for the consumer.
Do I have to pay State or local sales tax on the amount of the CARS program credit?
MAYBE. The question of whether a consumer must pay State or local sales tax on the amount of the CARS program credit depends on the sales tax law of each State or locality. Consumers should review the law of their respective States or consult a tax advisor to answer this question.
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:
