To buy or not to buy a new car, to dispose or not to dispose the old car… Maybe the government’s Cash for Clunkers program will aid in your excruciating decision-making moment.  You might agree that it’s quite a good deal.

CARS or Car Allowance Rebate System, also known as Cash for Clunkers, is a credit of $3,500 or $4,500 when you exchange an older car that’s less fuel-efficient for a new car.  Fair and sweet trade, isn’t it?

But before you head off to the car dealer, check out these Cash for Clunker facts first:  the trade-in vehicle must be younger than 25 years old; only purchase or lease of new vehicles are eligible; trade-in cars must get 18 MPG or less and must be registered and insured fully for the year prior to the trade-in; upon purchase, car dealers will apply a credit, so there’s no need for a voucher; this program is only until November first of 2009 or until funds are exhausted; your trade-in is to be torn down and this is a provision of the program, since the difference between the trade-in’s value as a whole and its value as scraps is negligible.

It is important to note that one of the program’s requirements is for your trade-in to have car insurance for the past year.  Although your car shall be sold for scrap, with Cash for Clunkers, you have a chance to benefit up to $4,500 from this deal.  Both American and foreign cars can be traded-in, and more good news is, the money you get won’t be counted as taxable income, except if you are the car dealer.

Visit Cars.gov for more Cash for Clunkers program details.