To qualify, the car, SUV or truck must be manufactured in 1984 or later and owned, insured and operated by the consumer continuously for at least one year. In other words, consumers won't be able to buy junkers now to take advantage of the program.
In addition, qualifying passenger cars must get 18 miles per gallon or less city/highway combined mileage as determined by EPA estimates; small light-duty trucks, including some SUVs and minivans, must get 16 mpg or less; and large light-duty trucks and vans weighing 6,000 pounds to 8,500 pounds must have a mileage of 14 mpg or less.
The replacement vehicle must get a combined fuel economy of at least 22 mpg for passenger cars; 18 mpg for SUVs, minivans and small pickups; and at least 15 mpg for large light-duty trucks and vans.
Consumers will receive $3,500 toward the purchase of a new vehicle:
If the new vehicle gets at least 4 mpg more than the old vehicle and if the old vehicle is a passenger car.
If the new vehicle gets 2 mpg more than the old vehicle and if it's an SUV, minivan or small pickup.
If the new vehicle gets 1 mpg more than the old vehicle and if it's a large light-duty truck.
Consumers will receive $4,500 toward the purchase of a new vehicle:
If the new vehicle gets at least 10 mpg more than the old vehicle and if the old vehicle is a passenger car.
If the new vehicle gets 5 mpg more than the old vehicle and if it's an SUV, minivan or small pickup.
If the new vehicle gets 2 mpg more than the old vehicle and if it's a large light-duty truck.
The discounts will be available only toward the purchase of a new, not used, vehicle and can be combined with rebates and incentives offered by the manufacturer.
The dealer who is selling the new vehicle will receive the money from the government and sends the old car off to be crushed.
It is also important to note that the $3500 or $4500 rebate you will be getting is not in addition to the actual value of your vehicle. It is the maximum amount you will receive as a trade-in.
Therefore, if your vehicle is worth more than $3500 or $4500, then this program provides you no benefit.