CARS Program: A Comprehensive Guide to Its Legal Framework and Impact

Definition & Meaning

The CARS Program, also known as the Car Allowance Rebate System, was established under the Consumer Assistance to Recycle and Save Act of 2009. This voluntary program, administered by the National Highway Traffic Safety Administration (NHTSA), aims to encourage consumers to trade in older, less fuel-efficient vehicles for new, more fuel-efficient models. Participants can receive a rebate of either $3,500 or $4,500 to assist with the purchase or lease of a qualifying vehicle.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A consumer trades in a 1999 SUV for a new hybrid vehicle and receives a $4,500 rebate under the CARS Program. This helps offset the cost of the new vehicle.

Example 2: A family with joint ownership of an eligible trade-in vehicle can only receive one voucher, regardless of the number of owners. (hypothetical example)

Comparison with related terms

Term Definition Difference
CARS Program A federal program providing rebates for trading in older vehicles. Specifically focuses on fuel efficiency and environmental incentives.
Cash for Clunkers A colloquial term often used to refer to the CARS Program. Cash for Clunkers is not an official term but a popular name for the program.

What to do if this term applies to you

If you are considering participating in the CARS Program, ensure your vehicle qualifies for trade-in and that you purchase or lease a new vehicle within the specified timeframe. You can find legal forms to assist with your application through US Legal Forms. If you have questions or need assistance, consulting a legal professional may be beneficial.

Quick facts

  • Rebate amounts: $3,500 or $4,500
  • Eligibility period: July 1, 2009 - November 1, 2009
  • One voucher per person and trade-in vehicle
  • No additional dealer fees for voucher use

Key takeaways