How consumers can get cash for clunkers

In the past few months, the Obama administration has rolled out a raft of new legislation, aimed at - among other things - stimulating the economy, helping families avoid foreclosure and reigning in deceptive credit card practices.

Now, with the president poised to sign the "cash for clunkers" bill, the White House is aiming to assist the car industry, consumers and the environment in one fell swoop.

Under the $1 billion bill, car owners can receive vouchers in exchange for turning in their older, less fuel-efficient vehicles.

All of the details of the program have not been confirmed yet, but the basic idea is that consumers can receive either $3,500 or $4,500 in credit toward the purchase of a new car or truck if they bring in their old gas-guzzler.

For cars, the lower-value voucher is for purchasing a vehicle that is more fuel efficient by four miles per gallon, while the higher amount is for buying one that adds 10 miles in fuel efficiency. Trucks and SUVs have slightly different requirements.

How do you qualify? First of all, the car that is traded in must be in driveable condition and have been manufactured in 1984 or later.

Also, the vehicle should have been insured by the same owner for at least one year prior to the trade-in. Finally, it should get 18 miles per gallon or less in combined city and highway driving to qualify.

Consumers who want to take advantage of "cash for clunkers" may wind up getting even steeper discounts than those provided by the vouchers, as car dealers are currently offering great incentives to buy.

Car-shoppers with good credit scores are also likely to be able to secure a favorable deal on financing.

Unfortunately for those who have already purchased a new car this year, the credit does not apply retroactively.

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