<P> The Car Allowance Rebate System (CARS), colloquially known as "cash for clunkers", was a $3 billion U.S. federal scrappage program intended to provide economic incentives to U.S. residents to purchase a new, more fuel - efficient vehicle when trading in a less fuel - efficient vehicle . The program was promoted as providing stimulus to the economy by boosting auto sales, while putting safer, cleaner, and more fuel - efficient vehicles on the roadways . </P> <P> The program officially started on July 1, 2009, processing of claims began July 24, and the program ended on August 24, 2009, as the appropriated funds were exhausted . The deadline for dealers to submit applications was August 25 . According to estimates of the Department of Transportation, the initial $1 billion appropriated for the system was exhausted by July 30, 2009, well before the anticipated end date of November 1, 2009, due to very high demand . In response, Congress approved an additional $2 billion . </P> <P> A study by University of Delaware researchers concluded that for each vehicle trade, the program had a net cost of approximately $2,000, with total costs outweighing all benefits by $1.4 billion . A 2017 study in the American Economic Journal found that the program, intended to increase consumer spending, reduced total new vehicle spending by $5 billion . </P>

When did the cash for clunkers program end