Cash for Clunkers, or the Car Allowance Rebate System (CARS) as it is called by the government, is a credit of $3,500 or $4,500 for trading in an older, less fuel-efficient car for a new, greener car.

• Your trade-in vehicle must be less than 25 years old

• Only purchase or lease of new vehicles qualify

• Trade-in cars must get 18 or less MPG (some very large trucks and cargo vans have different requirements)

• Trade-in cars must be registered and insured continuously for the full year preceding the trade-in

• You don't need a voucher, car dealers will apply a credit at purchase

• The program runs through Nov 1, 2009 or when the funds run out, whichever comes first

• Your trade-in is required to be destroyed. So the value you negotiate with the dealer for your trade-in is not likely to exceed its scrap value. The law requires the dealer to disclose to you an estimate of the scrap value of your trade-in vehicle.

Even though your old car will be sold for scrap, if it does qualify for Cash for Clunkers you could get up to $4,500. You can trade-in both American and foreign cars, and the money you receive will NOT be considered taxable income (unless you're the car dealer). A condition of the Cash for Clunkers program is that your trade-in must have had car insurance for the past year.

For more information on the Cash for Clunkers program visit Cars.gov.

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