The money in the Cash for Clunkers program is almost gone and it looks like Congress will be putting in an additional $2 billion into the program. If you are looking to trade in your car, make sure that you read all the fine print so you know if you will qualify and in New Jersey, be prepared to pay sales tax of 7% on the money you get from the government.

That’s right, unlike other states who see the money from the government as a trade-in, New Jersey sees it as a sale and will charge you 7% sales tax. If you get $4,500 from the program, you will owe the state of New Jersey, $315. Just another way to over tax the citizens of New Jersey.