It’s unlikely Mike Titus would have gotten more than a few hundred bucks when he traded in his gas-guzzling 1996 Dodge Ram 1500. But thanks to a new federal “Cash for Clunkers” program, its value has jumped to $4,500.

“I fully plan to rid myself and this world of my gas-guzzling Dodge with this program,” the 23-year-old Hamilton resident said. “Because of gas prices, it mostly sits while I drive a used Kia I picked up when fuel was closer to the $4 mark. My wife needs a new car so this seems to work out nicely.”

Officially known as the Car Allowance Rebate System, it was signed into law by President Obama June 24. Under CARS, you may be eligible for a rebate when you trade in your current vehicle for a new, more fuel efficient one. The National Highway Traffic Safety Administration said it expects to have final rules in place by Friday, July 24.

Here’s the Deal

The program offers federal vouchers for the purchase of a new vehicle valued at $3,500 to $4,500. The money must be used for a new car or lease of a vehicle that gets better gas mileage than your old car.

The legislation indicates a new passenger car must get 22 miles per gallon or better to qualify for the CARS program. If the new car gets four to nine miles per gallon more than the old one, the voucher is worth $3,500. That figures jumps to $4,500 if the mileage difference is 10 miles or better.

For a new small truck or SUV, it must get at least 18 miles per gallon. Buyers will receive a $3,500 voucher if the vehicle gets two to four miles per gallon more than the old vehicle, and $4,500 if it's more than five miles.

Additional terms of the legislation include that the old vehicle must have been owned and insured by the person trading it in for at least one year. The age of the vehicle can be no more than 25 years at the date of trade-in, and have a combined city/highway fuel economy of 18 miles per gallon or less. It must also be in drivable condition. Once the car is traded in, the engine and transmission must be destroyed. However, other parts can be resold.

As for the new vehicle, it must have a sale price under $45,000 and leases must be for at least five years.

The CARS program runs through Nov. 1, or until the $1 billion set aside for the program runs out.

Residents have mixed feelings on program

While his 1998 Dodge Caravan runs fine, Fairfield Twp. resident Brian Jonson said each year he drives it chips away at the value.

“Well, the current value of this van is barely $2,000, so even though it runs well and looks decent, if I could receive up to $4,500 for it then it is a positive transaction for me,” he said.

But while Samual Bonaker of Hamilton said he would love to trade in his 1997 Ford Explorer, he couldn’t afford new-car payments.

“People I talk to are afraid to go spend $20,000 plus on a new car not knowing if they will have a job next month,” he said.

Fairfield resident Katherine Mattingly said even if she could get cash for her Chevrolet Impala, she wouldn’t trade it in through the program.

“It’s not right to waste our tax money that way,” she said.

Lea Teager said most people who drive a “clunker” do so because it's the only vehicle they can afford.

“As we are all aware, $4,500 does not purchase a new car, possibly a used car with better mileage capabilities,” the Middletown resident said. “But the program doesn’t seem to accommodate that type of purchase. So if the better gas mileage doesn’t pay the different in what people will have to pay out, what is their true incentive to participate in the program?”

Harm charities?

What no one knows is how paying residents to trade in their old cars could affect the charities that depend on car donations to fund programs.

“We see it as a concern. We don’t really know the full impact something like this could have,” said Mari Jo Sellers, spokeswoman for Goodwill Easter Seals Miami Valley.

The local Goodwill system has been running an auto auction for the past five years. The company collected 10,000 cars in 23 counties during that time, which were then auctioned off to generate funding for 40 programs and services, like employment training for the disabled, Sellers said.

In a time when the economy has increased the demand for its programing, the revenue from the car auctions is needed more than ever.

“We are concerned about the “Cash for Clunkers” and the outcome it could have on our organization that recycles cars in a little different way,” Sellers said. “Our program is two-fold: you donate a car and help with services and also get a tax deduction. For some people, that may be enough.”