The 'Cash for Clunkers' Trade-In Program: UPDATED

We've got the inside scoop on the government's new "cash for clunkers" program. The program unofficially kicks off on July 1, 2009 and will run until November 1, 2009. President Obama signed off on the CARS (Consumer Allowance Rebate System) Act on Wednesday, June 25, 2009. The official program rules by NHTSA won't be released until July 23, 2009.

In order to find out if your clunker qualifies for the CARS Act, here are five questions you must be able to answer yes to:

1. Is your gas guzzling clunker in drivable condition?


2. Is your clunker less than 25 years old?


3. Has your clunker been continuously insured and registered in your name for at least 1-year?


4. Does the vehicle have a combined fuel economy of 18 mpg or less? To check the mileage, click here.


5. Like any trade-in, the vehicle, keys and registration information must be turned over to the dealer. Are you willing to turn these items over to the dealer?

If you were able to answer yes to all of the aforementioned questions, congratulations! You're ready to move on to the next step by visiting the government's new website dedicated to the CARS Act. Your local participating new-car dealer will be responsible for administering the program. If you have further questions about the program after perusing the website, feel free to contact 1-866-CAR-7891, after July 1. 2009.

To check out Jeff's latest commentary on BlackVoices.com explaining the CARS Act, click here.