Here are the rules for the new “Cash For Clunkers” government program. If your car qualifies then you could receive a credit of either $3500 or $4500 towards the purchase or lease of a new car. Read more about the details of the Cash for Clunkers bill.
[edit July 31 - the Cash for Clunkers program has ended]
[edit July 31 - the Cash for Clunkers program has been continued]
[edit Dec 9 - Cash for Remodeling]
Car must be less than 25 years old from manufacture date
This applies to the date of trade-in relative to the manufactured date of the car. See this article on the cash for clunkers program for exact instructions on determining the age of your car.
You must purchase or lease a new car
The credit will only be received for a trade-in on a new 2008,2009 or 2010 car with a purchase price of $45,000 or less. It has to be a purchase or lease. Used car purchases are not eligible.
The old trade-in car must get 18 mpg or less (city/highway combined). See this website to find out the mileage for your car or this site to find your car. The new car must have a combined fuel economy of at least 22 mpg.
Domestic and foreign cars
Applies to new cars of any country – domestic and foreign cars are all eligible.
Eligible trade-in dates
The trade-in must occur after July 1, 2009 and before November 1, 2009 or until the program funding (1 billion dollars) is depleted.
Amount of credit
Credit will be either $3500 or $4500. If the new car gas mileage is between 4 and 10 mpg more than the old car then the credit is $3500. If the difference is at least 10 mpg then the credit is $4500.
Proof of ownership
The trade-in car must have been owned by you and insured for the past year (ie 365 days). You must provide documentation for this. Car must be driveable!!
See this article for answers to more common questions about the Cash for Clunkers program.