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Vehicle Retirement and Cash-for-Clunker Programs

Updated Reviewed by the Free Gas Cards Foundation assistance teamSources cited

The federal "Cash for Clunkers" program ended in 2009. Today, some states run vehicle retirement programs that pay owners to retire old, high-polluting cars, often alongside emissions repair assistance; California's Consumer Assistance Program is the best-known example. Donating a car to charity can also bring a tax deduction under IRS rules.

Old truck being retired through a vehicle retirement program

State vehicle retirement programs

Some states and regional air quality agencies pay income-eligible owners to retire cars that fail emissions tests, or help pay for emissions repairs. Program availability and payment amounts change, so check your state air quality or vehicle repair agency.

Repair instead of retire

If you need your car, emissions repair assistance may be a better choice. See free car repair and car repair grants.

Donating a car for a tax deduction

If you itemize deductions, donating a car to a qualified charity may be deductible. IRS Publication 4303 explains how the deduction is calculated.

Replace your car affordably

See free cars for low-income families, low-income car loans and government car programs.

Frequently Asked Questions

Is cash for clunkers still available?

The federal program ended in 2009. Some states run their own vehicle retirement programs.

How much do states pay to retire a car?

Amounts vary by state and income. Check your state program for current payments.

Can I donate a car that does not run?

Many charities accept non-running cars. Your deduction depends on what the charity does with it.

Sources

Program rules change often. Always confirm details directly with the agency or charity before you apply. Free Gas Cards Foundation is not affiliated with the government agencies or charities listed.

James Carter, Program Director, Free Gas Cards Foundation
Written by the Free Gas Cards Foundation assistance team · Reviewed by James Carter, Program Director

Our team helps families apply for gas cards every day. This guide was researched from the official sources listed above and last reviewed on . Read our editorial policy, program rules and transparency commitments. Spot an error? Email info@freegascards.org.

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