The hood ornament of Jon Edwards’ 1997 Saab shows wear. Edwards, of Freeport, Maine, plans to trade in the car and buy a Toyota Prius.

The New York Times/ JOEL PAGE

The Consumer Assistance to Recycle and Save Act of 2009 that President Obama recently signed into law is expected to become effective by the end of the month.

The so-called “Cash for Clunkers” law is aimed at helping both the auto industry and the environment by encouraging people to trade in their gas guzzling jalopies for new, more fuel-efficient vehicles.

“I think it’s a good thing, I really do,” said Chris Hurd, president of Hurd Auto Mall in Johnston. “The manufacturers and dealers get to sell more cars, the state gets more tax revenue and it’ll stimulate the economy.”

“It’s certainly a positive step for generating additional sales,” said Jack Perkins, executive director of the Rhode Island Automobile Dealers Association. “It’s had some success in Europe, in Germany in particular.”

Indeed, sales in Germany increased by a reported 25 percent to 40 percent.

“The object is to help the environment and the industry and we could certainly use all the help we can get,” Perkins added.

To be eligible for the new law, your car has to be less than 25 years old and have had a combined rating of 18 miles to the gallon or less when it was new.

It also must be in drivable condition and have been registered to and insured by the same owner for a year prior to applying for the trade-in — in other words, forget about pulling a banger out of a junk yard for $100 and trying to trade it in.

And clearly, it does not make sense to trade in a vehicle if it is worth more than the rebate.

In addition, the new car you are trading it in to buy must get at least 22 mpg. To get a $3,500 voucher, the new car must be at least 4 miles per gallon more efficient; for $4,500, it must be at least 10 mpg more efficient.

If you want to upgrade to a new crossover, minivan, pickup or SUV, the new vehicle must get at least 18 mpg. To get the $3,500 voucher, the new vehicle must be at least 2 miles per gallon more efficient; for $4,500, it must be at least 5 mpg more efficient.

To fulfill the law’s mandate to get less fuel efficient vehicles off the road, the law mandates that all the vehicles traded in will be destroyed.

Hurd said that aspect of the law presents a challenge for dealers.

“We’ve got to make sure [the clunker] gets scrapped,” he said. “We’re not going to do it. We’ll need a signed affidavit or something.”

The government has set aside $1 billion for the program, which will run until Nov. 1 or when the money has been spent, whichever comes first. The National Highway Safety Administration has 30 days from the signing of the bill — June 25 — to work out the details.

At the same time, Perkins advises anyone who might be eligible and interested to make inquiries.

“People should not wait,” he said, noting that it is better to find out now whether your old vehicle and the new vehicle you might be interested in both qualify, and that you qualify for any necessary loan.

“It will help the industry,” said Perkins. “It will help people who might be thinking about buying.”

He added that, combined with the federal tax credits that are available on such vehicles as diesels and gas-electric hybrids, the cash for clunker program offers great deals.

Perkins said he understands that about 250,000 new vehicles are expected to be sold under the program.

That will boost U.S. auto sales, which are running at an annualized rate of 9.7 million vehicles based on last month’s sales, down 28 percent from the 13.7 million rate in June of last year.

But critics have argued that 250,000 additional vehicles is a small percentage of overall sales.

“We would have liked to see it be more, but there is only so much that can be done,” Perkins said.

Other critics of the program argue the mileage standards of 22 mpg for new cars and 18 mpg for new crossovers, minivans, pickups or SUVs are too low.

In addition, owners of vehicles worth less than $4,500 are not seen as likely customers for new cars with all the additional payments involved, preferring to repair rather than replace.

But Hurd said owners of clunkers come in all shapes and sizes.

“There’s a lot of people out there who have a clunker as a second or third car [who’d] want to cash it in for way more than it’s worth,” he said.

“It’s not going to change everything 180 degree, but it’s a helper,” he said. “Every bit helps. A bit here, a bit there and before you know it we’re on the right tracks.”

For more information, go to:

www.cars.gov/faq.html

pelsworth@projo.com