Frequently Asked Questions

What vehicles are eligible?

The vehicle must be pre-owned, located at a Vermont dealership, get at least 40 MPG/MPGe combined city/hwy as rated by the EPA, be priced at or below the J.D Power Clean Retail Value, and have a sale price of less than $40,000.

How much is the incentive?

The incentive is 25% of the initial sale price, up to $5,000. For example, a vehicle listed at $16,000 would receive a $4,000 incentive. Any vehicle listed at $20,000 or more will receive the full $5,000 incentive.

If you receive 3Squares/SNAP benefits, the incentive is worth $5,000 off the initial sale price of an eligible vehicle.

Where does the incentive go?

Unlike a rebate, the incentive functions as cash down. We send the money directly to the dealership so you don’t have to cover it.

How is income eligibility determined?

The MileageSmart Program is designed to assist Vermonters who are at or below 80% median income based on household size, determined by Adjusted Gross Income.

Your household income is determined by adding up the Adjusted Gross Income of everyone in your household. This is line 11 on a IRS form 1040.

Can I buy two cars through this program?

This program is limited to one registered vehicle per licensed driver. So, while you cannot buy a second vehicle yourself through this program, another eligible adult in your household may.

Do I have to own the vehicle for a certain period of time?

Yes, you must obtain ownership of the vehicle for a minimum of 12 months (1 year) from the time the vehicle was sold to you.

My child is 18 and heading off to college — can they buy a car through the MileageSmart program?

If they are listed as a dependent on anyone’s tax returns, then no, they are not eligible.

I bought a car with a MileageSmart Incentive, but it was totaled. Can I get another car through the program?

Unfortunately no. We can only fund one incentive per licensed driver.

I just bought an eligible vehicle - can I get the incentive retroactively?

No, incentives are only available at the time of purchase.

How does it work with a trade-in?

You may trade in your current vehicle to bring down the price, just as with any car purchase.

What if I still owe money on my current car?

In the case of a trade-in with negative equity, the 25% incentive can be used to pay down the existing loan. 

Example: If you owe $5,000 on your current vehicle, but the dealer offers only $3,000 for a trade-in, your negative equity on that vehicle is $2,000. The high-MPG used car you want to buy costs $12,000, so MileageSmart would provide an incentive of $3,000 (25%). You can use $2,000 of that incentive to pay off the negative equity on your current vehicle, and then apply the remaining $1,000 towards the new purchase, bringing down the loan amount for your new car to $11,000.

However: if your negative equity was $4,000 and your incentive was only $3,000, the deal would not qualify unless you first paid down the $1,000 difference on your current vehicle.

Between my trade-in and the incentive, the new car is paid for, but not all of the incentive was used. Can I get that money back?

No. Your incentive, in this case, will be just the amount needed to buy the car outright. For example: if your MileageSmart car purchase price is $12,000, it’s eligible for a 25% incentive of $3,000. However, if the dealer offers $10,000 to trade in the vehicle you currently own outright,  MileageSmart will only pay the remaining $2,000 rather than the full $3,000.

I applied for a loan but wasn’t approved. What can I do?

Ask the bank why you weren’t approved — they will likely have specific reasons and advice for what you can do to increase your chances of being approved in the future. Your local community action agency may have resources or workshops that can help with improving your credit and increasing financial literacy. In the short term, however, you may need to look for low cost cars that won’t require you to take out a loan.

I’ve been approved for the program, but I don’t feel quite ready to buy a car. Does my MileageSmart application get thrown out after a certain amount of time?

No. For as long as the MileageSmart program is funded, we will keep your file open unless you ask us to delete it. Incentives are limited and will be distributed on a first come, first served basis until funding is committed.