In the last week of June 2009, the cash for clunkers bill was approved by the U.S. Congress. The bill was passed with an aim to help the plummeting automobile industry by offering vehicle owners incentive coupons. This was done to encourage the owners for swapping their present cars with those that are new, with higher fuel efficiency, and possessing environment friendly features. The customers stand to gain through the discount purchase or renting of the new vehicle along with the dealers improving their car sales.

Some rules pertaining to the cash and clunkers program

There are a number of rules and requirements for taking part - it's important you understand the cash for clunkers program in detail:.

• To be eligible to participate in this program and take advantage of the cash incentive, your car should not be more than 25 years old.

• Your car should be in a drivable condition and not be junk or just a pile of steel. The EPA estimated miles per gallon are the sole guide for car dealers to check your car's fuel mileage. This is 18 miles per gallon for regular cars. For huge cargo vans and trucks, the standard is set at 15 miles per gallon.

• Registration and insurance of the automobile must have been done in your name at least a year ago. Registration and insurance proof are also necessary.

• You also have to ensure that the title does not have liens or such other issues. It is important to check all these points before going to the dealer.

• Customers are entitled to $3,500 or $4,500 credits for new automobile purchases only. The term "new" is according to the definition of each state which usually signifies that the car has not been ever titled. It can be a 2008, 2009 or a 2010 model. For leasing of a new vehicle, a 5 year lease is the requirement.

• One of the rules of the program also says that car purchases made only during the period July 1, 2009 up to November 1, 2009 can qualify for the cash voucher.

• In case your car's value is higher than $4,500, no incentive is given to take part in the cash for clunkers program. You may trade in your car and make use of factory credits and rebates.

To take part in the cash for clunkers program and receive cash voucher, the customer simply has to supply the appropriate information regarding the title, insurance and registration to the agency or dealer. After the customer has finished signing off on the papers relating to the purchasing or leasing of the new vehicle, it is the turn of the dealer to take it up from here. The dealer submits the papers to an appropriate agency. It is at this juncture that The National Highway Traffic Safety Administration (NHTSA) deals with the matter. Within a span of ten days or so a credit voucher directed to the customer is sent through the dealership.

These are the chief protocols pertaining to the cash for clunkers program.