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Educate Yourself Before Taking Advantage Of 'Cash for Clunkers'

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Khatir Soltani
5. Select the right vehicle for you. Only select new vehicle models are eligible for the CARS program. While a wide variety of vehicle types are included, consumers should not feel pressured into purchasing a vehicle that does not fit their needs and lifestyle. As with any vehicle purchase, consumers should evaluate their lifestyle, needs and priorities to select the vehicle that is right for them. No matter what their needs, AAA recommends consumers consider fuel-efficiency a high priority.

Some of the factors to consider include: How large is your family now and might it be in the near future? How long is your commute? Will you need to tow a boat or use it for other recreational purposes? Do you travel with pets? Do you want a more environmentally-friendly vehicle?


6. Do not sign contingency agreements. Consumers should not sign contingency agreements to pay back the dealer should their CARS credit be rejected. It is the dealer's responsibility to make sure the purchase qualifies for the program.

7. Take possession of new vehicle at time of transaction. If the dealer has the new vehicle in stock, consumers must be allowed to take possession of the vehicle at the time of the paperwork is complete. Consumers do not have to wait to take possession of their new vehicle until the dealers receive their CARS credit from the federal government.

8. Don't pay an extra fee. Consumers should not be charged a fee by dealers specifically to process paperwork for the CARS program. While other dealers fees will still apply, there should be no additional fees for this program.



photo:Jupiter Images
Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 8 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada