The OLD Vehicle


In order to qualify for a voucher, your present vehicle must be:
  • No more than 25 years old at date of trade-in (if you have a 1984 or 1985 vehicle, see sidebar below)

  • EPA rated at a combined 18 mpg or less for cars, minivans, SUVs, and light-duty trucks (if you have a heavy-duty pickup or van--defined as having a Gross Vehicle Weight Rating of 8,500 to 10,000 lbs--see sidebar on next page)

  • In running condition

  • Owned, licensed, and insured by you for at least a year
If you Own a 1984 or '85 Vehicle...
Many websites we’ve encountered indicate that 1984 vehicles are eligible for the program, but according to the written rules, at least, that’s not typically going to be the case.

The rules of the Cash for Clunkers program state that the traded-in vehicle has to be 25 years old or less to qualify, and that the date of manufacture is what’s used to determine the car’s age. According to the official CARS (Car Allowance Rebate System) website (http://www.cars.gov/index.html), “the month and year of manufacture appear on the safety standard certification label that is located on the frame or edge of the driver’s door in most vehicles.”

Back in the 1980s, most manufacturers changed over production from one model year to the next during the summer, typically in June. Therefore, the last 1984 models were usually built in June of 1984, with the first 1985 models being produced in July of 1984. Since the Cash for Clunkers program doesn’t start until July of 2009, that means a car built in June of 1984 or earlier would be more than 25 years old at the start of the program and thus ineligible. In some cases, 1984 models might have been built until December 31, 1984, but that would likely be few if any.

By the same token, a 1985 model built early in the model year might pass its 25-year mark during the course of the Cash for Clunkers time frame, which is July 24, 2009, to November 1, 2009. Therefore, if you have a 1985 vehicle for trade-in, it might be wise to check the date of manufacture so that you don’t let it pass its 25th birthday.
Oddly, it’s the “18 mpg or less” clause that forms the biggest hurdle. The idea was to get gas-guzzlers off the road while leaving thriftier vehicles in the used-car marketplace. Therefore, while most SUVs, minivans, and pickups qualify, some small pickups and SUVs don’t, and relatively few cars do. So despite the fact that all vehicles from 1985 to 2007 have been re-rated using the stricter fuel-economy standards instituted for 2008 models--thus lowering their figures vs. what they were originally (a good thing)--many vehicles that might seem like shoe-ins simply don’t make the cut. For instance:
  • A 1988 Buick LeSabre, sedan which carries a combined rating of 20 mpg, doesn’t guzzle enough to qualify.

  • A 1994 Nissan 2WD pickup (predecessor to the Frontier) qualifies if it has a V6 engine and automatic transmission, but one with a manual transmission or a 4-cylinder engine doesn’t drink enough fuel. 

  • A 1988 Ford Mustang with the V8 and manual transmission will get you a voucher, but not one with an automatic. And forget about V6 models.

  • No 1994 Chrysler Concorde or Dodge Intrepid--both full-size sedans--qualifies.
To look up your existing car on the EPA site, go to www.fueleconomy.gov, click on “FIND AND COMPARE CARS” in the top left-hand box, select your year, then make, then model.

You may see several different models listed if your car was offered with more than one powertrain, so find the one that matches what you have. Next, click on the underlined phrase that says “Compare to Official EPA Window Sticker Fuel Economy.” You’ll see a box with a red band across the top that says “New MPG.” The raised center number in red is the combined figure used to determine eligibility.

Don’t forget the clauses that state the vehicle has to run and that it be owned, licensed, and insured by you for at least a year. This essentially ensures that the gas-guzzling vehicle being taken off the road would otherwise be on it, and prevents someone from buying a clunker just to turn it in for a voucher.

There’s one more element that pertains to your trade-in and that’s its “scrap value.” The rules state that a traded-in vehicle can’t be resold and the engine block has to be destroyed, but that the vehicle can be “parted out” before being sent to the shredder. They also say that the dealer has to give you a fair estimate of your car’s scrap value, and that the dealer can keep $50 of the proceeds to cover administrative costs. Anything above that $50 is taken off the price of the new car just like a traditional trade-in, but don’t expect the scrap value to be very much. Even if the car you’re trading in has a market value of $3,000, it’s worth only a fraction of that after the engine has been destroyed.

If your existing vehicle qualifies you for a voucher, the next step is to determine whether the NEW vehicle does.