Cash for Clunkers Ends Today at 8PM

Today is the last day of the Cash for Clunkers Program, which is scheduled to end at 8pm tonight. At this time, all applications must be turned in by dealers and no new applications will be accepted.

This deadline, which was announced last week, has led dealers to scramble to finalize deals, submit applications, and sell new cars. It has also led to a number of consumers pushing up the purchase date of their new vehicle, so that they can take advantage of this rebate program.

The Cash for Clunkers program offers between $3,500 and $4,500 for trade-ins when a new car is purchased. Vehicles that have a 10mpg increase over the trade-in receive the full $4,500 and those with a 4mpg increase receive $3,500.

Originally, $1 Billion was allotted for the Cash for Clunkers Program, but due to higher than expected demand, this budget was expended in only a few weeks. Congress then approved an additional $2 Billion last week, but demand did not decrease and it is expected that by tonight, this budget will be met.

Can the Dealer Make Me Pay Back the Rebate if it is Not Approved?

The short answer to this is NO. This is illegal for the dealer to do.

With only a few hours left to purchase a new car, many consumers are scrambling to take advantage of the program and dealers are continuing to use it as a selling point. So, it is important to note that under the program, car dealers are 100% prohibited from making you sign a contract saying you must repay the discount if the Cash for Clunkers application is not approved.

If the dealer suggests that you must sign this sort of contract, they are violating the terms of the Cash for Clunkers program and should be reported, as this is illegal.