Do you drive a motor vehicle with a high fuel economy.

Did you know the new Consumer Assistance to Recycle and Save Act of 2009 " CARS Act "or "Cash for Clunkers" was passed on July 24 2009 and enables those citizens with motor vehicles meeting specific criteria to receive a credit for trade ins at certain vehicle dealerships.This applies to new cars, second hand cars and even new and used automobile dealerships for leased and outright purchases.

The CARS Act and affectionately becoming known as cash for clunkers, makes provision for a citizen to approach a vehicle dealership and make application for their vehicle to be scrapped in oreder to acquire a newer leased or credit applied vehicle.The funds have ben allocated from the state coffers in an attept by President Barack Obama to improve the safety conditions of transportation and roads in the United States.

If a dealership decides to agree on a specific trade in if the vehicle meets the requirements of the specifications under the "Cash for Clunkers"Act, then a rebate of $50 can be obtained for scrapping fees by the dealership as well as the grant awarded to the applicant towards their new vehicle.

Ceratin exclusions have been catered for as a scrap yard may elect to retain the engine and drive train components for sale at a later date to mechanics or collectors looking to restore older vehicles.

Due to the poularity that this new act poses if used in conjunction with existing dealership offers on new or leased vehicles, the Offices of Enforcement have had to quickly create a new department to cater for the electronic funds transfer as well as receive and catalogue the claims from participating dealerships.

The NHTSA has set up 3 new divisions to cater for the influx of enquiries and to provide efficient and accurate information to the public and interested dealerships.They are The Transaction Oversight Division, The Data Analysis and Reporting Division and The Compliance Division.

The CARS system or Car Allowance Rebate System as it has become known is still in its infancy stages and it has been decided that the rebates will not be seen as income in the hands of the purchaser as it relates to Tax Implications. The teething problems seem to be getting addressed as and when they occur as new information on different scenarios are created and tested through the system.