Last week, the future of Cash for Clunkers, or the Car Allowance Rebate System (CARS) as it is called by the government, was up in the air as the funding ran out. It was originally set up to last through November 1, 2009--but the funds lasted about 1 week.

"Now more American consumers will have the chance to purchase newer, more fuel-efficient cars and the American economy will continue to get a much-needed boost," Obama said in a statement.

But with car buyers receiving $3,500 or $4,500 credits per trade, that $2 billion could get used up pretty quick. According to the Associated Press, more than $775 million of the original $1 billion has been spent, translating into the sale of nearly 185,000 new cars. The new Cash for Clunkers funding is expected to last through Labor Day, and should mean another 500,000 cars sold.

• 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 according to NEW EPA standards, not the fuel economy on the original sticker(some very large trucks and cargo vans have different requirements)

• Trade-in cars must be registered and have car 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.

• New vehicle MSRP must be less than $45,000 (additional options that raise the price over $45,000 are allowed)

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

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