According to this report on abcnews.com, the government is apparently suspending the “cash for clunkers” program, started by the federal government to give incentives worth upto $4500 to people trading in their old, low fuel efficiency cars (also called “gas-guzzlers”) for new high fuel efficiency cars. This incentive has resulted in sales of thousands of new cars over last few days, giving a big boost to automobile sales in the country.
I don’t know who came out with the term “cash for clunkers” (“clunker” is a term used to describe a vehicle that is old and needs a lot of maintenance), but the program is officially knows by the acronym CARS, short for Car Allowance Rebate System. According to the CARS official website cars.gov, this program is a
$1 billion government program that helps consumers buy or lease a more environmentally-friendly vehicle from a participating dealer when they trade in a less fuel-efficient car or truck. The program is designed to energize the economy; boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation’s roadways.
Consumers will be able to take advantage of this program and receive a $3,500 or $4,500 discount from the car dealer when they trade in their old vehicle and purchase or lease a new one.
Generally, the fuel efficiency of your car must be 18 miles per gallon (7.5 km per liter) or less, and it should be less than 25 years old. Pick up trucks and vans may have different requirements. For more details, visit the official cars.gov website or call their 24-hour toll free number 1-800-424-9071.
Update 7/31/09: House approves fresh money for cash for clunkers.