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Comments
It will take several days--maybe weeks--for the agency to process all of the pending claims. Then they'll be able to report to Congress on whether or not there's any money left. Then Congress will decide whether or not to (a) quickly approve more funds, or (b) let it die, or (c) hold hearings before deciding about more money.
Best case: it's back, with more money and better accounting procedures, in two or three weeks. Worst case: the money's gone, and Congress spends weeks on hearings, and potential customers don't buy because they think the program might be back in a few months, and dealers start dying off because they lack the liquidity to withstand the waiting period.
If the program is reactivated, that is. . .
As disappointed as I am that I won't be swapping my old truck for a new car tomorrow, I'm very, very grateful that I am no longer in the car business. C4C has been very profitable, if they get paid for all the deals that qualify, but it has also been a giant headache, and the lack of accounting rigor has created a great deal of uncertainty.
Any dealer that went in with both feet could conceivably be facing a business-killing delay in receiving payments. I wouldn't be surprised to see some dealers opt out when/if the program is reactivated.
That puts my local Chrysler-Hyundai-Mazda dealer very much on the bubble right now.
I say do it! Get it up and running by Monday, 08/03/2009!
One other thing: I doubt there are 2.5 million units in stock that could be moved by Labor Day. Something on that scale would lead to massive inflation.
http://money.cnn.com/2009/07/30/autos/cash_for_clunkers_suspended/index.htm?cnn=- yes
Thanks
Since C4C is gone for now, I can just imagine how desperate dealers must be (after all they were so psyched about this), and how little cars would be sold while people wait for C4C to return. With 2010 coming out (and 2009/2008 needing to clear out), can't wait to see what kind of deals this uncertain time will bring.
I do think that 2.5 million units (that qualify) can be made available by early September though. Most dealers and automakers are flooded with unsold 2008s and 2009s. With the low sales in the first 6 months of '09, inventory should not be a problem.
Why do you think inflation would come into play at all? Seems like a drop in the bucket really.
I should've been more clear. I didn't mean to suggest that overall currency inflation would run rampant. But I do think that funding the program at 10x the original amount would lead to shortages of many models, and dealers would respond by raising the effective transaction prices on those models through "ADM," "Market Adjustment," etc.
Most likely targets for that kind of behavior would be recently revised or all-new designs where production is site-limited. The Prius and Fit would be affected, but so would the 2010 Fusion, the Malibu with the six-speed automatic, the Kia Soul, various Minis, any VW TDI, and maybe the RAV4 and Venza. Not to mention the V6 Camaro. . .
Bingo, Pelosi and crew will not give up their vacation for Obama Health care. They sure are not worried about the C4C program. If Congressional leaders suspended it, then look for a long wait. If the NHTSA or DOT suspended, it could be back up when they get their ducks in a row.
LMAO...... Thanks BR
GP
I will now get my deposit back and move on to a faster dealer down the road.
Now the political angle. As soon as I heard about this I knew they would "blank" it up. Except for the Coast Guard and some of the military, government is incompetent at best, totally corrupt otherwise. And they want to control health care?
The revolution is coming to a street near you and a lot sooner then you think!
I understand you think your not getting treated fairly.... But the "market" regulates everything..... Markets go up and markets go down..... plain simple. Now I somehow believe the dealer would keep his pricing the same.... one because he knew long before the 24th how the program was going to be "challenging"....
The real problem is you don't have a title in hand.... I understand it is a cruel world, but as people have mentioned showrooms are filling up.... the real problem is since you don't have a title there is really nothing to talk about. the program will end before you can get a dup. I can olny imagine he would offer the original deal a few days before the C4C date of 24th.....
GP
LMAO.... Wow you crack me up..... What you don't understand is that the rules have been changing everyday..... I can assure you, is this improving sales? Yes but it is the busiet time of the year to begin with..... Dealer not making any effort to push your deal through? LOL..... The dealerships have all the pull in this situation.... This not like giving someone a free oil change, or getting someones vehicle through the service department faster by pushing someone else aside.... :confuse:
We are dealing with govt..... maybe next January your local dealer can get you some extra tax credits....
I can only assume you don't live in GA. because you sound amazed that they charged you GA. tax..... Also I am sure the dealer will correct the paper work if they are smart because if they get caught making any errors on the paper work they will not get paid the $4500 and stand a chance of a $15,000 fine..... Right why would a dealer want to loose $19,500 over your little $500..... :surprise:
You don't get title until all monies are collected. Nothing new to see here.
They did want I wanted = GOOD STORE
Isell you are the best.... LMAO , Only a few more days.... Is it August yet?
We had a number of orders booked with deposits where the customers were coming in on the weekend with all their docs to complete the deals. We called them all to rush in 2nite to get contracted by midnight.
Only 2 did. It's a huge bump in sales. It's a huge headache. It's a huge risk on the part of the dealers. Hopefully it will be extended ..but $1 Billion used in what was effectively 2 weeks???? That's insane. How many people have been sitting on these oldtimers? It must be millions and millions.
As noted previously it's nearly universal that all the ones taking advantage of the program are better than well-off with all their paperwork in order and a very sound understanding of what the program is about. I must say that it says a lot for the innate level of intelligence in a large segment of the population.
Very few whiners btw. Just solid people with a good handle on their finances and on their lives.
I will now get my deposit back and move on to a faster dealer down the road.
I promise it is not the dealer!!!! If you go down the road you risk the chance of loosing the program.... If the dealer doesn't go by the rules they will be out more money than they earned..,.. but you sound like you know what you are talking about
Conservative Republicans more than likely. :shades: We all have a couple old vehicles that we keep licensed and registered to loan out to family when they are in town. I considered using my 99 Ranger. My wife would not even consider it for her 1990 LS400. It is worth a lot more than $4500 to her.
Fund Balance Remaining for CARS
$779M Estimated funds remaining for all vehicles except for CAT3 Trucks.
$75M Estimated funds remaining for CAT3 Trucks.
Last update 7/30/2009 at 10am eastern time.
That is remarkable insight. It took everyone else by surprise.
tidester, host
SUVs and Smart Shopper
tidester, host
SUVs and Smart Shopper
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Smart woman. Unless it's all torn up or has a quarter of a million miles on it, it's worth twice that much.
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What was your "clunker" and what shape was it in?
Most clunkers have little scrap value but there are exceptions............
" require dealers to disclose to the person trading in an
eligible trade-in vehicle the best estimate of the scrappage value
of such vehicle and to permit the dealer to retain $50 of any
amounts paid to the dealer for scrappage of the automobile as
payment for any administrative costs to the dealer associated
with participation in the Program;"
It would seem that if the law specifies that a dealer can retain a set portion of the scrappage proceeds then it follows that he/she may not retain the rest. Am I missing something here?
tidester, host
SUVs and Smart Shopper
Yes, that's what the law says but I'm confused about the stipulation stating the dealer can retain $50 for administrative costs. Why not simply state that the dealer keeps all the proceeds from scrappage and be done with it? Perhaps it's a tax thing - like administrative fees aren't taxable while the rest of the scrappage fee is?
tidester, host
SUVs and Smart Shopper
In the meantime, we're stuck with the current situation. Good luck!
tidester, host
SUVs and Smart Shopper