Residents planning to buy or lease a new car this year may want to step it up and cash in on the Car Allowance Rebate System. CARS is a federal program that helps buyers purchase a more fuel-efficient vehicle.Those who qualify for the “Cash for Clunkers” program can save from $3,500 to $4,500 on their purchase by trading in their gas-guzzling older vehicle. The promotion is valid from late July through Nov. 1 or until the allotted money runs out. The rebate is in addition to any promotional discounts offered by the dealer or manufacturer of the vehicle.There are some caveats, however.Restrictions apply to the trade-in vehicle as well as the new vehicle to be purchased.According to www.cars.gov, the trade-in vehicle must be less than 25 years old, have a “new” combined city/highway fuel economy of 18 miles per gallon or less, be driveable, and be insured and registered to the same owner for at least a year.It gets trickier. Very large pickup trucks and cargo vans have different requirements.
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David Oakley Jr., of Oakley Chevrolet Buick Pontiac in Bartlesville, said he has seen some interest in the program but it’s not for everyone.“Not every car or individual will merit using it,” he said. “The program is complicated enough that we’ll have to look at it case by case.”Oakley said the program is environmentally driven, meant to rid the roads of non fuel-efficient vehicles. However, he said a person’s auto may not “be enough of a clunker,” depending on the fuel economy standard.Also, if the vehicle trade-in is worth more than $4,500, the person can just trade in the car and forget the rebate, according to Oakley.The good news is consumers don’t have to send away for a voucher. The dealership will handle the paperwork and apply a credit at purchase. However, before stepping onto the car lot, make sure the prospective dealer has registered for the program.Also, the dealer is required to tell the purchaser how much the scrap metal is worth (all trade-ins will be scrapped). And dealers are prohibited from charging a fee to sell or lease a vehicle under the CARS program.Oakley said the final rules should be posted today and dealerships that started the process early may be in trouble if the rules have changed.“There are still some things to work through, like getting the cars to a scrap metal site. It’s a shame we have to scrap the cars because someone like a single mother may have been able to use one of the vehicles,” he said.Restrictions on the new vehicles include a purchase price of not more than $45,000; for passenger vehicles, it must have a combined fuel economy of at least 22 miles per gallon. For category 1 trucks, the new vehicle must have a combined fuel economy value of at least 18 miles per gallon; for category 2 trucks, at least 15 miles per gallon; and category 3 trucks have no minimum fuel economy requirement. (See inset.)Oakley said he hopes a lot of people aren’t disappointed if the rebate isn’t what they expected.“They don’t have to feel silly if they can’t make heads or tails of the rules either,” he said.The value of the credit is determined by the difference of the combined fuel economy of both vehicles. For a credit of $3,500, the difference must be at least 4 but less than 10 miles per gallon higher. For the $4,500 credit, the difference must be at least 10 miles per gallon higher.Oakley cautions those considering the program to do their homework first; log on to www.cars.gov and check out the fuel economy ratings for the trade-ins.Prospective buyers can find the combined fuel economy of the new vehicle on the window sticker or visit www.fueleconomy.gov/feg/findacar.htm and search for the vehicle.“Also, consider your needs when shopping for a new car,” said Oakley. “Don’t buy a car you don’t really want just to get the credit.”
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