Salvage Direct will process cash for clunkers trade-ins for new car dealers

National Car Allowance Rebate System (C.A.R.S.)

Salvage Direct is the BEST partner for your C.A.R.S. for these reasons:

  • Established and extensive vehicle movement and logistics
  • Already knowledgable about regulatory compliance
  • Process transparency
  • Data reporting to federally mandated databases
  • Buyers are 100% qualified and licensed businesses
  • Best net economic results

We also provide paperless vehicle transaction records for at least 7 years, including scanned documents with signatures, disclosures and all vehicle information.

Salvage Direct is a member of the American Salvage Pool Association (ASPA). Download material about the ASPA and C.A.R.S.

What is the Car Allowance Rebate System?

President Obama signed into law a program the National Highway Traffic Safety Administration (NHTSA) is calling the Car Allowance Rebate System (CARS). This is a federal program that helps consumers purchase a new, more fuel efficient vehicle when consumers trade in a less fuel efficient vehicle. See the Government's Frequently Asked Questions for more details.

The information presented on this page can and probably will change!  Check http://www.cars.gov before making any decisions!

While the CARS Act makes transactions on and after July 1, potentially eligible for credits under the CARS program, interested dealers and 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. Issuance will occur around July 24.  The program will end November 1, 2009.

Important details

  • Consumer's vehicle must be less than 25 years old on the trade-in date
  • Only purchase or lease of new vehicles qualify
  • Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
  • Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
  • Consumer's don't need a voucher, dealers will apply a credit at purchase
  • Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
  • The vehicle that consumers trade in is required to be destroyed. Therefore, the value you negotiate with the dealer for your trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to you and estimate of the scrap value of your trade-in vehicle.
    • This is where Salvage Direct can help dealers get the maximum return for the vehicle - Call 814/827-0300 NOW and ask for Dan.

How it works for consumers

  1. Determine if you qualify, then shop for a new car.
    1. You do not need a voucher and you are not required to sign up or enroll in this program. The Participating new car dealers will apply a credit, reducing the price you pay at the time of your purchase or lease, provided the vehicle you buy or lease and the vehicle you trade in meet the program requirements. The dealer will then obtain reimbursement from the government.
  2. Bring the title, registration and insurance papers showing continuous registration and insurance coverage for the past full year.
  3. When you buy or lease a new vehicle, the dealer handles the submission of all required information to NHTSA.
  4. NHTSA ensures that your purchase meets the requirements.
  5. About 10 days later, NHTSA will issue a financial credit to the dealer—assuming all program requirements have been met.

 Governement FAQ