It was announced today (8/20/09) that the 'Cash for Clunkers' program will end Monday night (8/24/09) at 8 pm. Only claims submitted by this deadline will be honored. If your on the fence about this program you need to act soon. Dealers have been advised to only take claims where all the paperwork is clearly in order and ready to be submitted.

Make sure all your paperwork is in order (www.cars.gov has all the details). 

People are turning in their older cars (Clunkers) and purchasing new ones, taking advantage of the $3500 or $4500 dollar price reduction offer by the Government (this is paid to the dealer). Some Car dealers are offering to match the Government which could give you a savings of $7000 or $9000 dollars on your purchase price and the offer of 0% or very low financing.

Sounds tempting doesn't it? The 0% financing is out there if you have a very good credit rating. So unless your credit record is spotless figure on paying interest. The better your Credit rating the lower your interest.

Does your vehicle qualify? Will the new car?

In order to qualify your car must be drivable, be less then 25 years old at the time of the sale (manufactured date can be found on a sticker attached to the cars frame. Open the drivers door and look for the sticker with the bar code and VIN #, the month and year will be listed there), have your name on the title, be owned free and clear by you (you need to sign it over at the time of the deal), been insured and registered to you continuously for at least the last 1 year and 1 day prior to the sale (have proof of both with you) and be rated as getting 18 mpg or less .

Your new car must be just that new, used cars are not in the program. It must also cost less the $45,000 and be on the list of eligible cars. The difference between your old cars' MPG and the new cars' MPG will determine if you get the $3500 or $4500 credit.

The Dealer will be responsible for making sure the vehicle is disabled. This means that the Engine and Drive Train must be disabled before transferring it to an eligible salvage auction to disposal facility.

The Dealer must also tell you the scrap value of your trade-in of which they are allowed to keep $50 for administration fees. What happens to the rest of the scrap value is up to you and the dealer, most apply it to the cost of the new car.

Beware of 'shady' deals.

You do NOT have to sign any agreements that state you must repay the dealer or give back the car if their application for the credit is denied and they don't get their money from the Government. (If their claim is denied because you gave false information they can take legal action to recoup their money from you regardless of any agreements signed) You do NOT have to give them your Social Security number, the $3500 or $4500 will NOT be reported as income for you (it will for the Dealer). The Dealer must let you take the new car before they get their money from the program. There are NO fees for participating in the 'cash for clunkers' program.