The Associated Press has learned that the government Cash for Clunkers program will end Monday, August 24 at 8pm Eastern. This comes only 2 weeks after $2 billion more was added to the clunkers program.

If you are planning on trading in your clunker for a new car, do it quick. The Cash for Clunkers program ended once, and it is believed unlikely that congress will find more money to keep the program running.

Here is the break-down of the Cash for Clunkers rules:

• 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)

Remember, to trade in a car for the $4500 allowance, it must have been insured for the last year. And a new car will have different car insurance needs than an older one, so shop around for the best car insurance rates.

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

Related Stories

$2 Billion More for Cash for Clunkers

Not So Fast! Cash for Clunkers Confusion

Trading In Your Clunker? Better Trade In Your car insurance Policy Too

Cash for Clunkers

Share on Facebook