California Vehicle Retirement Program Requirements

California’s Vehicle Retirement Program pays $1,350 to $2,000 to permanently scrap an older, higher-polluting car through the Bureau of Automotive Repair’s Consumer Assistance Program. To meet the California Vehicle Retirement Program requirements, you need a drivable vehicle titled in your name without a lien, a qualifying smog check history, and, for the two higher payment tiers, a household income at or below 225% of the federal poverty level.¹ Which tier you land in decides which specific rules apply, so start there.

The Three Payment Tiers

There is no single flat payment. Three amounts exist, each with its own combination of smog, registration, and income rules.²

$1,350 standard. Open to any income. Your vehicle must have failed its most recent smog check, and it must have been continuously registered for the past two years with no lapse longer than 120 days.

$1,500 low-income with relaxed proof. Household income at or below 225% of the federal poverty level. Your vehicle needs a smog inspection completed within the past 180 days, but a pass or a fail both count. This tier also lets you substitute alternative proof, such as two years of California insurance or repair invoices, if your registration history has gaps.

$2,000 low-income with full requirements. Same income cap as the $1,500 tier, but the vehicle must have failed its most recent smog check and must meet the continuous registration rule with no 120-day gap.

People trip over the difference between $1,500 and $2,000. Both require low income. The $2,000 tier pays more because it demands a failed smog and clean registration; the $1,500 tier is easier on both counts and pays less.¹

Smog Check Rules Depend On Your Tier

For the $1,350 and $2,000 tiers, the vehicle must have failed its most recent smog check. A passing result disqualifies you from both.¹

The $1,500 tier only requires that a smog inspection was completed within 180 days of your application. Pass or fail, either works. If your vehicle is not subject to the Smog Check Program at all, for instance certain older model years or diesels, contact BAR directly to confirm which tier can apply to your situation.

Vehicle Condition and Required Parts

Every applicant, regardless of tier, has to bring in a passenger car, truck, SUV, or van with a gross vehicle weight rating of 10,000 pounds or less. It cannot be registered to a business, government agency, or nonprofit.¹

The car has to be drivable. At the dismantler, the engine must start through ordinary means, with no starting fluid and no external booster battery, and the vehicle must drive forward under its own power for at least 10 yards. BAR is blunt: a non-drivable vehicle will not be accepted.

The vehicle must also have all of the following present and intact:

All doors, the hood, and the windshield
At least one side window, one bumper, one headlight, one tail light, and one brake light
All side and quarter panels
Dashboard and driver’s seat
Exhaust system
Operational interior pedals

Body, steering, or suspension damage that affects drivability will disqualify the vehicle. A cracked windshield or missing mirror is likely fine. A bent front end that pulls the car hard to one side is not.

Registration History

For the $1,350 and $2,000 tiers, your vehicle must have been continuously registered with the DMV for the two consecutive years before your current sticker’s expiration date, with no lapse longer than 120 days. A lapse is the gap between when your sticker expired and when the DMV issued a renewal sticker for that year.¹

Your registration must be current, or, if it has lapsed, all DMV fees must be paid and the sticker cannot have been expired for more than 120 days when you apply.

The $1,500 tier is more forgiving. If your registration is not continuous, you can still qualify by showing the vehicle was mainly driven in California and not registered elsewhere for the past two years. You prove that one of two ways:

Continuous California auto insurance coverage for the two years before applying, with no total gap over 120 days.
Repair invoices from a licensed automotive repair dealer for each of the two calendar years before applying. Each invoice must show the dealer’s registration number, address, a description of the work, the date, and your vehicle’s make, model, year, and VIN.

You cannot mix methods. Insurance for one year and a repair invoice for the other year will not be accepted; pick one and document both years the same way.

Owner and Title Requirements

You have to be the individual listed on the California title. BAR verifies ownership against DMV records, so any mismatch between your name and the title will stall the application. The vehicle cannot be titled to a business, trust, or organization.¹

The title must also be free of lienholders. If a bank or finance company still shows on the title, clear the lien through the DMV before applying. BAR directs applicants to the DMV for the lien removal process.

There is a frequency cap. You cannot have retired a vehicle through CAP as a sole owner, or more than two vehicles as a joint owner, within the past 12 months.

If your original title is missing, damaged, or was issued by another state, contact the contracted dismantler to discuss options. You may need a duplicate California title from the DMV before you can proceed, so handle that early.

2026 Income Thresholds

The $1,500 and $2,000 tiers both cap household gross income at 225% of the federal poverty level. HHS updates the poverty guidelines each January.³ Under the 2026 guidelines for the 48 contiguous states, the 225% threshold is:

1 person: $35,910
2 people: $48,690
3 people: $61,470
4 people: $74,250
5 people: $87,030

Add roughly $12,780 for each additional person beyond five. Alaska and Hawaii use higher thresholds.⁴ You certify income under penalty of perjury on the application, and you will need supporting documents such as tax returns or pay stubs.

Documents to Gather Before You Apply

Missing paperwork is the most common reason applications stall. Have these ready:

California Certificate of Title in your name, no lienholders listed
Current or most recent vehicle registration card
Valid government-issued photo ID, such as a California driver’s license or state ID
Income documentation for the $1,500 and $2,000 tiers, such as tax returns or pay stubs
Alternative registration proof for the $1,500 tier if your registration has gaps, meaning two years of California insurance or qualifying repair invoices

The names on your ID, title, and registration must match exactly. If your name changed through marriage or a court order, fix that with the DMV before applying.

How to Apply

BAR accepts applications online and by mail, and recommends online for speed. The application is at bar.ca.gov/cap/retirement in English and Spanish. For a paper version, download it from the same page or call BAR at (866) 272-9642 to request one by mail.¹

Do not schedule a dismantler appointment or do anything irreversible with the vehicle before your application is approved. If BAR approves you, it sends a letter of eligibility listing the contracted dismantlers in your area. That letter has an expiration date, so schedule the turn-in promptly.

The Turn-In Appointment

Contact one of the dismantlers on your eligibility letter and pick a date. You must drive the vehicle onto the dismantler’s property under its own power. Towing or trailering it in is not allowed.

At the appointment, the dismantler will:

Confirm the engine starts normally and the vehicle drives forward at least 10 yards
Inspect for all required body panels, lights, glass, and interior components
Check your signed title, registration, and photo ID
Give you a receipt confirming the vehicle was accepted

The dismantler then sends the final paperwork to BAR and handles DMV reporting so the vehicle is officially taken out of service. Once you hand over the keys and title, the vehicle is gone. There is no reversal.

Payment, Refunds, Taxes, and Insurance

BAR mails a check after processing. Expect several weeks. Historically the wait has run about four to six weeks; if nothing has arrived after two months, contact BAR.

You may also be entitled to a prorated refund of the Vehicle License Fee portion of your registration. The DMV calculates it as one-twelfth of the annual VLF for each full month remaining until your registration would have expired, minus a service fee. The base registration fee, weight fee, and miscellaneous fees are not refundable.⁵ If you paid renewal fees for a period that had not yet started when the car was scrapped, you can request a refund of those as well.

Treat the payment as potentially taxable. The IRS generally treats government payments as reportable income unless a specific exclusion applies, and the program administrator may issue a Form 1099-G or 1099-MISC.⁶ Whether you owe tax on the $1,350 to $2,000 depends on your overall return. Keep the dismantler receipt and any BAR correspondence.

Finally, call your auto insurer once you have your receipt and cancel coverage on the scrapped vehicle. Insurers do not learn about the scrap on their own, and premiums keep running until you notify them. Some carriers will refund the unused portion of your policy.

1
Bureau of Automotive Repair. Retire Your Vehicle
2
Cornell Law Institute. California Code of Regulations Title 16, 3394.3 – Vehicle Retirement and Repair Assistance Payment Limits
3
Cornell Law Institute. California Code of Regulations Title 16, 3394.6 – Application and Documentation
4
Federal Register. Annual Update of the HHS Poverty Guidelines
5
California State Department of Motor Vehicles. Payments and Refunds
6
Internal Revenue Service. Instructions for Form 1099-G