cars.gov/dealersupport

cars.gov/dealersupport

cars.gov/dealersupport explains CARS.gov program. cars.gov/dealersupport explains many of the qualification limitations for the Cash for Clunkers Stimulus program.

LALATE has been covering the program since it was a bill and most news reports haven’t address some of these limitations that you should be aware.

1. Don’t go out and buy a user car and think the next morning you can get CAR money.

2. Don’t pull out that 30 year old car from the driveway because it doesn’t qualify either.

3. And don’t try applying your used Honda or Toyota for this program. It’s for domestic cars only.

cars.gov/dealersupport explains all the details and limitations including the following:

May I receive or use more than one credit under the CARS program?

No, the CARS Act specifies that not more than one credit may be issued to a single person, not more than one credit may be issued for joint registered owners of a single eligible trade-in vehicle, and that only one credit under this program may be applied toward the purchase or lease of any single new vehicle.

What is the amount of the credit?

The amount of the credit is $3,500 or $4,500, and generally depends on the type of vehicle you purchase and the difference in fuel economy between the purchased vehicle and the trade-in vehicle. Different requirements apply for work trucks.

What is the value of the credit for the purchase or lease of a new passenger car?

The value of the credit for the purchase or lease of a new passenger car depends upon the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle that is purchased or leased. If the new vehicle has a combined fuel economy that is at least 4, but less than 10, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new vehicle has a combined fuel economy value that is at least 10 miles per gallon higher than the traded-in vehicle, the credit is $4,500.

What is the value of the credit for the purchase or lease of a new van, pickup truck or SUV?

The value of the credit given for the purchase or lease of a category 1 or 2 truck also generally depends on the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle that is purchased or leased. If the new vehicle is a category 1 truck that has a combined fuel economy value that is at least 2, but less than 5, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new category 1 truck has a combined fuel economy value that is at least 5 miles per gallon higher than the traded-in vehicle, the credit is $4,500.

Do I have to pay State or local sales tax on the amount of the CARS program credit?

The question of whether a consumer must pay State