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The Car Allowance Rebate System program, under which the U.S government intends to run the cash for clunkers program, was signed into a law in the June of 2009. However, the details of the program were not divulged till about a couple of days back.

Now that the cat is out of the bag, both customers as well as dealers
of cars are overjoyed. The auto dealers envisage a 10 to 30 percent increase in new vehicle sales at least till the program runs. On the other hand, the prospective car shoppers can take advantage of new government incentives worth $3,500 to $4,500.

The cash for clunkers program
Brainchild of the U.S administration, the Car Allowance Rebate System program is being launched with a budget of $1 billion. The program runs through Nov. 1 or till the budget is exhausted, whichever is earlier.

Under the said program, consumers will get a rebate off the selling price if they swap their older-model gas-guzzler with a newer, more fuel-efficient car.

The old vehicle to be traded in, needs to fulfill the following criterion: cars and trucks must be 1984 models or newer, they must get 18 miles per gallon or less and the vehicle needs to be drivable, insured and licensed for at least a year.

The used car purchases will not attract any rebate under the program. The vehicle may be a domestic or foreign model, but needs to meet the fuel-efficiency requirements. Only those vehicles that have a retail price of less than $45,000 would be sold under the program.

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