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New law gives 'cash for clunkers'
Subsidies have lots of requirements
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Mike Reed, general manager of NeSmith Chevrolet in Hinesville, announced that President Barack Obama signed into law a program on June 30 that the National Highway Traffic Safety Administration is calling the Car Allowance Rebate System (CARS). This is a government program that helps motorists purchase new, more fuel efficient vehicles when they trade in a less fuel efficient vehicle through credit of up to $4,500 from the government.  
While the CARS act makes transactions on and after July 1 potentially eligible for credits under the CARS program, consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued July 23. The CARS act requires that dealers be licensed by their respective state for the sale of new automobiles in order for them to participate in the program. NeSmith Chevrolet in Hinesville is an authorized dealer for this program.
The government has set aside $1 billion for this program through Nov. 1. Participating new car dealers will apply a credit up to $4,500 for trade-ins, reducing the price consumers pay at the time of purchase or lease, provided the vehicle the consumer buys or leases and the vehicle being traded in meet the program requirements. The dealer will then obtain reimbursement from the government.
There are several. Dealers can help potential buyers determine whether they have an eligible trade-in vehicle.  
According to Reed, “The amount you receive from the government is directly related to fuel efficiency. GM has 76 models that qualify, which is three times greater than any other manufacturer. We understand how to evaluate your trade-in and help you choose the vehicle that fits your needs and meets the fuel efficiency standards required by this law.  We’ll take the guess work out of this new law for you.”
To qualify for this program, your trade-in vehicle must :
• Have been manufactured less than 25 years before the date you trade it in.
• Have a combined city/highway fuel economy of 18 miles per gallon or less.
• Be in drivable condition.
• Be continuously insured and registered to the same owner for the full year preceding the trade-in.
• The trade-in vehicle must have been manufactured not earlier than 25 years before the date of trade-in.
Important things to note:
• You don’t need a voucher, dealers will apply a credit at purchase
• You may trade in a domestic or a foreign vehicle.
• Program runs through Nov. 1 or when the funds are exhausted, whichever comes first.
• The manufacturer’s suggested retail price of the new vehicle you purchase under this program cannot exceed $45,000. That price appears on the window sticker on new vehicles. The new vehicle must also achieve minimum combined fuel economy levels. For passenger automobiles, the new vehicle must have a combined fuel economy value of at least 22 miles per gallon. For category one trucks, the new vehicle must have a combined fuel economy value of at least 18 miles per gallon.
• The program does not apply to the purchase of used vehicles.
• The amount of the credit is $3,500 or $4,500, and generally depends on the type of vehicle you purchase.
The CARS act requires the dealer to use the credit under the program in addition to any rebates or discounts advertised by the dealer or offered by the new vehicle’s manufacturer.
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