The Cash for Clunkers program, formally known as the Consumer Assistance to Recycle and Save (CARS) Act, was a nationwide vehicle scrappage program. Signed into law on June 24, 2009, the program incentivized households to replace used, fuel inefficient vehicles with new, fuel efficient vehicles. Specifically, the program offered consumers a rebate of $3,500 or $4,500 towards the purchase of a new fuel efficient car provided they scrapped a used vehicle. Transactions became eligible for rebates on July 1, 2009 and ended on August 24, 2009. Over the eight weeks of the program, Congress allocated a total of $3 billion toward the subsidies. More than 677,000 vehicles were purchased under the program. (1)
