Cash For Clunkers

AAA

DEFINITION of 'Cash For Clunkers'

A program that allows car owners to trade in their old, less fuel-efficient vehicles in exchange for more fuel-efficient vehicles. Although commonly referred to as "cash for clunkers", the formal name for the program in the U.S. is the Car Allowance Rebate System (CARS). The CARS program gives people who qualify a potential credit of up to $4,500 depending on the vehicle purchased.

INVESTOPEDIA EXPLAINS 'Cash For Clunkers'

The Car Allowance Rebate System (CARS) was signed into law by President Obama in July of 2009 and will be administered by the National Highway Traffic Safety Administration (NHTSA). If you qualify, once you purchase a car, the dealer will submit all the required information to the NHTSA.

RELATED TERMS
  1. Shovel-Ready

    A term widely used by President Barack Obama to describe a construction ...
  2. Car Allowance Rebate System - CARS

    A U.S. government program under the Obama administration that ...
  3. Cash For Refrigerators

    A federal energy efficiency program introduced in the fall of ...
  4. Clunker

    A popular reference to the old vehicle traded in under the U.S. ...
  5. Blue Book

    A guidebook that compiles and quotes prices for new and used ...
  6. Gap Insurance

    A type of auto insurance that car owners can buy to protect themselves ...
Related Articles
  1. 12 Car Insurance Cost-Cutters
    Budgeting

    12 Car Insurance Cost-Cutters

  2. 15 Insurance Policies You Don't Need
    Insurance

    15 Insurance Policies You Don't Need

  3. Top Tips For Cheaper, Better Car Insurance
    Options & Futures

    Top Tips For Cheaper, Better Car Insurance

  4. 12 Ways To Shop Smarter
    Personal Finance

    12 Ways To Shop Smarter

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center