Do you have to pay taxes on rebates?

The cash for clunker law excludes the government rebates from taxation. They are not considered nor counted as income.

What is the scrap metal value of a clunker?

Currently the scrap metal value of a car is between $60 and $153 per ton. A ton is the equivalent of 2000 lbs and most passenger vehicles range between 3000 to 5000 lbs or 1.5 to 2.5 tons. Which is to say, the scrap metal value of most trade-in vehicles is not going to be much. However, certain parts, such as catalytic converters or doors, may have resale value and the Cash for Clunker law does permit parts to be resold on trade-in vehicles. Depending on whether or not the dealer maximizes scrap value by stripping cars of resaleable parts, the scrap value of your trade-in may be higher.

It’s a good idea to request scrap metal value quotes from several dealers to see who is offering the best deal. Also consider calling a local scrap dealer to see what their rates are to be sure the dealer is assigning a fair value. If you aren’t sure how much your vehicle weighs, check the owner’s manual or contact the manufacturer.