So what is the new government car trade in program? Here’s a brief overview:

• CARS is the name. Car Allowance Rebate System
• Your car must be no older than 25 years!
• One credit per person or joint registered owners
• Credit up to $4,500, but also possibility of $3,500
• If the new vehicle has a combined fuel economy that is at least 4, but less than 10, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new vehicle has a combined fuel economy value that is at least 10 miles per gallon higher than the traded-in vehicle, the credit is $4,500.
• Is the credit taxed as income? NO!
• There are special rules for trucks and work trucks, learn more here!