There’s Only One Official Site for New CARS Program

Scam sites try to get people to “enroll” in the program

By Florence Klein
Florence Klein
Courtesy of Florence Klein, Founder, SilverPlanet.com

As you likely know by now, if a new program is out there, a scam won’t be far behind. In this case, it involves the new Car Allowance Rebate System (CARS) program. This is a federal program that helps you purchase a new, more fuel-efficient vehicle when you trade in your less fuel-efficient vehicle.

If you have a 1984 or newer model car that gets 18 miles per gallon or less, now through November 1—or whenever the $1 billion runs out—you can get cash credit for purchasing a new car or leasing one for at least five years. (Large pickups and cargo vans have different requirements.) The vehicle you trade in must be registered and insured continuously for the full year preceding the trade-in. The new car has to be new, get at least 22 mpg, and cost under $45,000.

You don’t need a voucher: participating dealers will apply a credit at purchase, either $3,500 or $4,500. In addition to that, you’ll get a small amount for your trade-in—but since your gas guzzler will be destroyed, the value is not likely to exceed its scrap value.

Where the scam comes in is, as usual, via Web sites that have their own ideas about how the CARS program works. “Cash for Clunkers” scam sites ask for personal information, including names, addresses, and Social Security numbers, in order to “register” for the program, Patricia Swift-Oladeinde, a spokeswoman for the National Highway Traffic Safety Administration (NHTSA), the government agency assigned to administer the program, told CNN Money. Other Web sites tell car shoppers they will put them in touch with authorized “Cash for Clunkers” dealers in their area, she said.

What you need to know is that there is no need to register or enroll at all, and there’s no need to provide personal information online.

“We urge great caution in providing any information over the Internet to any website that purports to be related to this program,” according to the NHTSA’s site.

There is only one official Web site, and that’s the NHTSA’s Cars.gov. You can also call the agency’s hotline at (866) CAR-7891. A comprehensive list of new vehicles that meet the program’s requirements as well as the rules for the program will be posted at the site around July 23.


Published July 6, 2009

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Florence Klein
Founder, SilverPlanet.com

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