Guide to Vehicle Replacement

Check out the educational video series and answers to frequently asked questions below for information about the vehicle replacement program. Please contact us for any further questions.

Frequently Asked Questions


Can I retire and replace more than one car?
Only one car replacement is allowed per household, per lifetime.

Which cars can be retired and replaced?
Your current vehicle must be currently operational, gas-powered, and model year 2006 or older.

How long must I have owned the trade-in vehicle?
You must have owned the car for at least 6 months.
The vehicle needs to have documented usage within California for the past 2 years.

Which areas of California does this program cover?
You must reside within the jurisdiction of the San Joaquin Valley Air Pollution Control District.

  • Fresno County
  • Kern County (partial)
  • Kings County
  • Madera County
  • Merced County
  • San Joaquin County
  • Stanislaus County
  • Tulare County

My car is under my family member’s name. Can I apply for the program under my name?
Unfortunately, no. The name on the application must match the name of the owner.

My car is under my family member’s name, but I am on the insurance. Can I apply for the program under my name?
Unfortunately, no. The name on the application must match the name of the owner – an insured driver does not count.

I just bought my car – can I retire and replace it?
No, the vehicle needs to have been in your name for at least 6 months.

Where can I purchase my replacement vehicle?
The replacement vehicle must be purchased from one of our authorized dealers:

 

Can I purchase a pickup truck or minivan as my replacement vehicle?
No, not available at this time.

Can I purchase a gas or conventional  car as my replacement vehicle?
No, not available at this time.

Can I purchase a used car as my replacement vehicle?
Yes! We encourage our customers to find qualified used vehicles with low mileage. The car must be 2017 or newer.

What other requirements does the replacement vehicle need to meet?

  • Model year 2017 or newer
  • Less than 100,000 miles on the odometer – ideally less than 80,000 miles
  • Finance rate not to exceed 15.99%
  • No active vehicle safety recalls

After I buy my car, can I decide to sell it or trade it in later?

Yes, after 30 months.

Your contract will say: Participant shall operate the replacement vehicle for a period of not less than thirty (30) months from the date the vehicle is purchased, or Participant shall refund a pro-rated amount based on the number of years and/or days the vehicle was owned and operated by the Participant.

What if I buy the car and change my mind?

  • Used Vehicles have a minimum 3 day return period. Please verify with the dealership if they offer an extended return policy after 3 days.

  • A 5-day waiting period will be imposed after the close of purchase of the replacement vehicle before the retired vehicle is scrapped.

  • If you are purchasing a NEW and NOT a used car there is no return period. Please verify with dealership you are purchasing car with if they will offer a return option on a NEW car.
  • Once the retired car is destroyed there is nothing that can be done. Your only option is to proceed with the program or rescind from program entirely forfeiting your vehicle.

Can I apply for this program online?
Yes! Please visit the online application HERE.
Please contact our staff if you need assistance with the online application.

You can call us at:  209-808-2939 or 559-852-9282 or 661-372-4112.

What information do you need?

1.   2 years of registration in California (Two years ago through present if you have it)

2.   2 years of vehicle insurance in California.(Two years ago through present if you have it)

3.   Vehicle Title
→You must have owned your car for at least 6 months
→ Needs to be under your name for at least 6 months

4.  First 2 pages of last year's (latest) 1040 tax return
→ You can cover the SSN, we don’t need it

5.   Pages 1 and 3 of current PG&E or SoCal Edison bill
→ It does not have to be under your name

6.   Valid CA Driver’s License

Is it okay if my registration or insurance is not current?
We don’t require current registration or insurance. However, your application may or may not be approved depending on the usage history and operational status.

Why do you need all of the documents you request?
We need this information to determine your eligibility and income level. The more documentation you can provide us with, the easier it will be to process your application.

What if I don’t have a tax return?  What if I receive SSI checks?
That’s okay. We request this information to determine your income level. Please bring whatever financial documents that you have for the year (check stubs, letters from government agencies, etc.) that help verify your income.

What happens to my current vehicle?
It is collected on the day you purchase your new car. It will be destroyed by a vehicle recycling company.

Can I apply if I have a lien holder on my car?
If the title has been signed/stamped by company listed as lien holder, yes, you may proceed to apply. If the title has not been signed/stamped by company listed we will not be able to accept your application.

Do you have to be ‘low-income’ to qualify for this program?
You need to be at or below 300% of the Federal Poverty Level (FPL) to qualify, with the incentive increasing as household income decreases. We use your annual income and number of people living in your household to calculate your incentive amount. If you are at or below 300% of FPL according to the chart below, you can receive the maximum incentive amount.

How do I calculate my Federal Poverty Level?
Please use this table to calculate using your annual income and family size.

2024 Annual Poverty Guidelines
Household Size 300%
1 $45,180
2 $61,320
3 $77,460
4 $93,600
5 $109,740
6 $125,880
7 $142,020
8 $158,160
9+ for each additional person add $5,380

https://aspe.hhs.gov/poverty-guidelines

What incentive amount can you qualify for?

Incentive amounts are based on the customers’ income level and the type of replacement vehicle they purchase. There are higher incentives for cleaner cars.

You may also qualify for higher incentives if you live in an approved “Disadvantaged Community” or AB 617 community. Many neighborhoods in the Valley are designated as DAC – please contact us to find out if your address qualifies.

What is the mobility option?

You have the option to replace your car with a qualified E-Bike or transit pass

 DAC Incentives

Incentive for <300% Federal Poverty Guidelines
Electric Vehicle: $12,000*
Plug‐In Hybrid:   $11,500*
Hybrid MPG 35+ :  $7,000

*May also qualify for an additional $1,000 -$4,000 rebate through utility provider.

Non-DAC Incentives

Non DAC Incentive for <300% Federal Poverty Guidelines
Electric Vehicle: $10,000*
Plug‐In Hybrid:   $9,500*
Hybrid MPG 35+ :  $7,000

*May also qualify for an additional $1,000 -$4,000 rebate through utility provider.

 DAC Incentives

Incentive for <300% Federal Poverty Guidelines
Electric Vehicle: $12,000*
Plug‐In Hybrid:   $11,500*
Hybrid MPG 35+ :  $7,000

*May also qualify for an additional $1,000 -$4,000 rebate through utility provider.

Non-DAC Incentives

Non DAC Incentive for <300% Federal Poverty Guidelines
Electric Vehicle: $10,000*
Plug‐In Hybrid:   $9,500*
Hybrid MPG 35+ :  $7,000

*May also qualify for an additional $1,000 -$4,000 rebate through utility provider.

Partial Sales and Use Tax Exemption for Zero Emission Vehicles (State)

Beginning January 1, 2023, through December 31, 2027, a new law provides for a partial sales and use tax exemption on qualifying zero or near-zero (zero) emission motor vehicles (vehicles) purchased or leased by qualified buyers. Eligibility for the exemption is based on the buyer’s household income, where they reside, and the vehicle leased or purchased for which a grant letter was awarded under the Clean Cars 4 All (CCRA) Program.
The applicable tax rate for eligible transactions is the current tax rate minus the 3.9375 percent partial exemption. The reduced sales or use tax rate is generally applied to the total selling price of the vehicle before incentives are applied, such as the grant from CC4A.

Learn More

 

For Used cars:

Qualified vehicles and sales
    • To see if a vehicle is eligible for the used clean vehicle credit: Fueleconomy.gov      
    • To qualify, in addition to other requirements, a vehicle must have a sale price of $25,000 or less. Sale price includes all dealer-imposed costs or fees not required by law. It doesn't include costs or fees required by law, such as taxes or title and registration fees.

Learn More

For the New cars:

If you place in service a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after, you may qualify for a clean vehicle tax credit. 

You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV).

Qualified vehicles
  • Click the button below to see if a vehicle is eligible for the new clean vehicle credit.
    Go to fueleconomy.gov
  • To qualify, in addition to other requirements, the vehicle's manufacturer suggested retail price (MSRP) can't exceed (MSRP is the retail price of the automobile suggested by the manufacturer, including manufacturer installed options, accessories and trim but excluding destination fees. It isn't necessarily the price you pay.):
    • $80,000 for vans**, sport utility vehicles and pickup trucks**
    • $55,000 for other vehicles
      **(currently do not qualified under CCRA Program)

Learn More

 

What additional incentives can PG&E customers qualify for?
Pre-Owned electric vehicles can qualify for up to a $4,000 rebate.
*You must reside at an address that PG&E covers and be a current customer.
Valley CAN will help you complete and submit the application after the purchase of your replacement vehicle. More info about this program  HERE. 
Please call us at 559-404-0255 for more information.

What additional incentives can SoCal Edison customers qualify for?
Pre-Owned electric vehicles can qualify for up to a $4,000 rebate.
*You must reside at an address that SCE covers and be a current customer. Valley CAN will help you complete and submit the application after the purchase of your replacement vehicle. Please call us at 559-404-0255 for more information.

Can I have cash instead of a down payment check?
No. Our program only provides down payment checks as incentives for residents to purchase cleaner vehicles.

If I finance the car, can I pay off the loan early? Or do I have to pay it off as agreed on the dealership contract?
Financing the car or paying it off in cash is up to you.
Please check with the dealership or bank you are working with and ask if they have a pre-payment penalty.

Does my vehicle have to run?  

The vehicle must have the ability to drive onto the dealership lot under its own power which demonstrates functionality. Valley CAN staff are present at the time of final transaction

What phone number can I call to speak to someone about this program?
Please call 209-808-2939 or 559-852-9282 or 661-372-4112

Does Valley CAN help with the financing?

Valley CAN does not help make payments BUT our team can help you step by step into getting a loan through Self- Help Credit Union. Why Self- Help? Because they have an interest rate reduction of 0.25% - 0.50% for vehicles that are plug-in hybrid or fully electric vehicles.

If you would like more information feel free to reach out to our team:

loanteam@valleycan.org   OR  call/ text 559-392-4728

Can I lease a vehicle?

Yes, the lease period must be a minimum of 30- month lease term. The eligibility list maintained by the California Air Resources Board can be found here:  https://ww2.arb.ca.gov/ZEV-eligibility-list

 

 

 

Drive Clean in the San Joaquin is a program of the Valley Air District.