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We’ll attempt to answer common questions below. If you have a question you don’t see answered here, let us know in the comments section so we can address it.

How much money can I get toward the purchase of a new car?

It depends on how much more efficient your new car is when compared to the car you turn in. The AP explains, “Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker.”

Are the rules different for trucks and SUVs?

Yes. MSNBC reports, “Owners of sport utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle.”

Heavy Duty trucks?

USA Today explains, “Work trucks (8,500 to 10,000 lbs.) don’t have mpg ratings, so age is the criteria. The old one has to be a 2001 model or older. And only $3,500 is available.”

Does my trade-in have to be in working condition?

Yes. Autospies notes, that, in order to qualify, a vehicle “Must be in drivable condition.”

Can’t I just buy an older car for less than $4,500 and use it to claim the credit?

No. Autospies reports that the trade-in must “have been continuously insured to the same owner for at least one year immediately prior to trade-in.”

Can I just turn in an old car and take the cash myself?

No. USA Today reports that the voucher takes the form of “an electronic transfer from the government to the dealer. Dealers want to be sure the amount can be counted as cash from the buyer, which would help buyers get credit because they’re financing less.”

Can I use the money toward the purchase of a more fuel-efficient used car?

No. CNN Money reports, “The House deal does not offer any vouchers for the purchase of used cars.”

What happens to the old car I turn in?

Edmunds reports, “The dealer is responsible for sending the vehicle to a disposal facility. The entire vehicle will be crushed or shredded so that the car does not end up on the road again.”

In fact, there are heavy penalties for doing anything else. Jalopnik notes, “Anyone trying to pass the voucher off and then resell the car could be penalized $15,000 per violation. However, you can strip and sell any part of the car that isn’t the engine block.”

Will any older car do?

No. Only vehicles from model year 1985 and later are eligible – earlier cars can’t be used to claim the credit. Jalopnik reports, “This wasn’t done for the sake of [classic] car fans. They can’t easily determine the combined fuel economy of vehicles before the date because the EPA didn’t track this data.”

If I recently traded in a car toward a more fuel-efficient new car, am I out of luck?

Not necessarily. USA Today reports, “The bill contemplates making the incentives retroactive to March 30, but it’s unclear how to find and junk cars that were traded in that long ago. Some might already be back on the road, driven by new owners.”

Why is the government doing this?

For several reasons. Supporters believe the act will “revive the slumbering auto industry, save jobs, clean our filthy air, reduce our carbon footprint and lessen our reliance on foreign oil by helping consumers get that gas guzzler out of the driveway and put a new, fuel-efficient vehicle on the road,” according to the Salt Lake Tribune.

CNN Money notes that bill sponsor Rep. Betty Sutton (D-Ohio) told her colleagues in floor debate “It will improve our environment and reduce our dependence on foreign oil. The cars act demonstrates that we can free ourselves from the false argument of either you are for the environment or you are for jobs. You can do both.”

Will it work?

It may not be possible for it to meet all of those goals, but several European nations have already experimented with the concept and seen some success. Several U.S. states have experimented with the concept as well, though they have not met with clear success.

Why do some people oppose the plan?

Some in Congress, primarily Republicans, oppose the plan as an unnecessary expenditure and another handout to the automakers. Sen. Sam Brownback (R-Kansas) told Fox News “I will not support the plan if it creates new spending and increases the deficit to do it.”

But even some who support the concept oppose the bill as it has evolved. Senators Dianne Feinstein (D-Calif.) and Susan Collins (R-Maine) helped to introduce a similar proposal in January. Recently, the pair wrote an opinion piece in the Wall Street Journal arguing that the House version of the bill “undermines fuel-efficiency standards” with weak mpg requirements for new cars.

What are the downsides of the program?

Economist David H. Wang told BloggingStocks “What we do today will likely take away from consumption later.” While the bill “will stimulate demand for new vehicles,” Wang says, “perhaps as many as 2 million,” those same purchases will not happen at a later date. The proposal may spend taxpayer money to help people buy a car now instead of at some later date, which isn’t the same as creating new sales. Wang adds, “There also is the issue of delaying current sales, if the legislation does not pass soon. Tens of thousands of Americans are delaying a purchase, waiting for this bill.”

The bill also might not help as many people as first thought. Jalopnik points out, “operable vehicles are required and there aren’t many people driving around with vehicles worth less than” the voucher amounts. In fact, among older cars, “The least valuable qualifying cars, of course, are actually the more efficient compact vehicles, which makes getting the necessary 10 MPG improvement unlikely.” There may also not be many people driving a car worth less than the voucher who “can actually afford a new car. Our instinct tells us there aren’t many people. This means people taking advantage of the program will, typically, have to be excited by the prospect of saving $1,000 or $2,000. These people should already have been swayed by intense discounting from automakers in recent months.”

How much time do I have to act?

It isn’t clear. Many media outlets are reporting that the bill provides funds for one year, but that isn’t strictly true. The funding could actually run out much earlier. Edmunds reports, “The bill is written to provide vouchers for 1 million purchases. Since there is a one-year limit, consumers who are interested in taking advantage of this program should track the progress of the bill and apply for a voucher as soon as funds become available. There is a special provision in the bill that requires that no more than 7.5 percent of the funds for the program shall be used for work trucks.”

For more information on the cash for clunkers bill, check out our Cash for Clunkers page, where we’ve gathered the latest cash for clunkers news and what it means for you all in one place.

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