The Cash for Clunkers (or CARS) Program has taken off, but there are some things about it you NEED to know before you go pick out your new car.

1. Your clunker needs to be less than 25-years old.

If your current vehicle is from the 1970s, it will not work. Sorry.

2. You need the TITLE to your vehicle.

If you do not have the title of the vehicle in your hands, it will not work. Lost title applications are not acceptable. If you lost the title, file your lost title form, and maybe you will get your title before Cash for Clunkers is over.

3. All paperwork needs to be in the same name, with exact spelling.

This means if your name is Michael, and it says Mike on the title, do EVERYTHING as MIKE. Also, you cannot get the clunker credit if the vehicle is in someone else’s name…unless they buy the car with you. In addition, the proof of having insurance for a year needs to have the exact name on it that all the other documents do.

If Bob (the dad) lets Peg (the daughter) drive his old clunker for a year, and she gets insurance in her name, Peg will not be able to get the credit because the car is still Bob’s. Also, Bob will not be able to get the credit, unless he kept the car insured in his name for the entire year on that vehicle.

4. Be prepared to get DENIED.

There are 100+ reject codes with Cash for Clunkers. Forget to date something? Rejected. Wrong spelling? Rejected. Make sure you have all of your ducks in a row.

5. If your dealer is smart, they will not let you take the new car until they get a CARS approval.

The dealer has to float the $3500-$4500 until the government pays. If the government does not pay, for whatever reason, who is responsible for the $3500-$4500 dollars? YOU ARE. Any dealer with a lawyer (they all have lawyers) is going to make sure you sign a disclosure that says you accept responsibility for the CARS money.

I know lots of dealers are finalizing the paperwork on lots of new car sales. However, I also know that lots of dealers have done CARS deals without having all the proper conditions met. There are going to be a lot of pissed off customers and dealers when the program doesn’t work the “way it was supposed to”.

Some dealers are not going to pay good enough attention to the CARS guidelines, they are going to get your auto loan funded, and then the government is not going to pay the dealer for one reason or another. Mark my words. It is going to happen.

If you are in the Olympia area, and you want to see your REAL options, check us out. We will try to make this complicated process as simple as possible. If you have a little spare time, you can also read the 180 page CARS Program document from the cars.gov website.