Cash for Clunkers - Does it Work for You?

paul007

Here's a quote from the first page of the CARS.gov website:

"The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate."

The customer does in fact get the net salvage value of the car. As for the dealers saying their costs to get rid of the car are higher, well, that's the program and if they don't want to abide by it then drop out. Every business has costs. You have to look at the bottom line. If they make $1,500 selling the car, but then have associated costs of $250 they are still $1,250 ahead of the game simply for getting a car in and pushing it out the door. Make the big money on volume and not by illegally nickel and diming each customer. In fact, the dealer could be setting himself up for a big fine by cheating the customer out of his net salvage value. All somebody has to do is turn them in. It's best to stay 100% with the program and still make a pile of money.

oldfarmer50

CNBC has just announced that CFC has run out of money.

Turn that old heap around and chug back home. All the rich guys traded in their BMWs and Jags and ate the steak and left the rest of you the bone.

Typical government program.

joegiant

"If they make$1,500 selling the car..." What if, as in my case, they make NOTHING (or pretty darned close to nothing)? I could care less what the scrap value of my 22 year old pickup was - seriously! Should they get a bunch for 'er very rare AND pristine parts, all the power to 'em. As for me and my house, we are quite pleased with the deal we got. Oh, and when the phone rings, I'm still checking Caller I.D. Even the kids know NOT to answer any calls from "the car guys". We've moved! :P

94gs

We've moved!



Have you gotten the title of the new car yet?

I think my dealer will work on the title *after* he gets the voucher. I am driving with a 30-day temporary tag.

tidester

Here's a quote from the first page of the CARS.gov...

Thanks, Paul! That second sentence didn't appear in my copy of the legislation.

tidester, host
SUVs and Smart Shopper

chunglau

What was your "clunker" and what shape was it in?

Most clunkers have little scrap value but there are exceptions............

The general manager already stated that the scrap value is $200. It is based on weight. In this case, it may have been the average weight for the clunkers he received.

The law, as stated in the rule document, is clear that the dealer may only keep up to $50 of the scrap value. So I think the dealer is taking a big risk by keeping more than that. It only takes one customer to blow the whistle on them.

chunglau

Check out this document:

http://www.cars.gov/files/TheRule.pdf

Go to page 123, second paragraph. The dealer has to sign this certificate stating that he has retained no more than $50 of the scrap value for any administrative costs in connection with the CARS transaction.

sbelcher

I have a 1999 Isuzu Rodeo, which does qualify under the CARS Program. It had been rolled when I acquired it and has considerable body damage on the roof, fender and drivers door, so it would not bring much value other than CARS, although it ismy daily driver. I also have a 2006 Chevy Malibu Maxx that I still owe about $13k on. This puts me at about $7k in negative equity. My question is, would there be any way to trade both of these vehicles in for a mini van or small SUV that could support three rear facing car seats and not loose my shorts?

lemko

The 4.9 (300 cubic inch) Ford engines were one of the best engines ever produced by anyone. The were tough and powerful and they lasted forever.

Yeah, and some dealer is going to deliberately kill it with a lethal sodium-silicate injection due to a government mandate! Good God, I couldn't have let that happen to my 1988 Buick Park Avenue! It would be like shooting Old Yeller!

lemko

A car is like a member of the family to me. I'm not the type to get emotional, but I cried like a baby when the vet put my cat down. Good thing I didn't C4C my '88 Park Avenue! I'd have had a nervous breakdown if I watched them inject that fine 3.8 V-6 with that sodium silicate solution!

donewithvws

My dealer told me last night they had already stopped processing C4C applications and had no idea what was going on. When I asked if my app had been processed he wasn't sure. He said a lot had been sent to corporate but not sure what the status was. I know Congress said those that have been processed would be honored but not sure who fits into that category..? Especially if mine is still sitting on my dealerships' desk.

Are there any other dealerships out there that could shed a little more insight???

british_rover

You couldn't if it is like my old Bonne it gets too good a gas mileage.

joegiant

Moved...but we're still checkin' the forwarding PO Box.

Humor friend, humor. Just trying to keep a chuckle going here as everyone appears to have suddenly gotten on edge with the government doing it's usual thing (Extreme incompetence at every bureaucratic level! 250,000 vehicle limit for a nation in excess of 300 million people...and growing! Government management at it's best!). No, I'm running the same temp tags (couldn't take the truck tags and put 'em on a car in my state) and awaiting title as well. I'm rather certain in my previous car purchasing escapades over the years, the titles were always mailed out after the transaction was finalized. Could be wrong but I think it's happened that way before.

Still don't think it was my place to press 'em for the scrap value on my particular vehicle. Felt my total deal was a really good one and left it at that. Rat out the dealer to the feds cuz they didn't highlight it in my stack of paperwork at signing? I think not. Again, personally, I could care less.

lemko

Although I'll admit that every once in awhile, I've thought about just trying to find the nicest '79 New Yorker in existence and then selling off my other two, in the hopes that would quench my R-body fetish

How about that 4K-mile one that showed up on Craigslist not too long ago. That one appears to be about the nicest R-body left.

old_man

my wife picked me up from work last night and were AT the dealership ready to pull the trigger - the dealer got a call on his cell from inside the office to let him know that the CARS program had been suspended.

Our dilemma with waiting to see CARS is continued is that our insurance will need to be nenewed on our clunker tomorrow (8/1) AND more importantly that we will also need to renew the registration emissions and inspection AND replace a cracked windshield to keep the vehicle eligible just in case the CARS program is revived. That will be several hundred dollars down the drain.

oh well - maybe I'll go out and buy a new ATV instead

cstewart27

My vehicle scrap value is $200 as well, but here's what happens to it according to the scrap yard. They sent this to the dealers and will also send to buyers upon request. (I've removed their name - xxxxx).

I get the $25.

The following valuation method will be used by xxxxxx for program vehicles based upon the scrap metal value, market conditions and additional resources needed to carry-out program initiatives.

1 *Scrap metal value $200.00
2 *Additional Milliron Resources -$25.00
3 *Vehicle processing -$25.00
4 *Transportation -$75.00
5 *Dealer Administration Compensation -$50.00
6 *Total Net Remaining Value $25.00

gagrice

Smart woman. Unless it's all torn up or has a quarter of a million miles on it, it's worth twice that much.

It has 98k miles. She bought it new in 1989 and it has always been in the garage. Not a scratch on it. Runs like a sewing machine, smooth and quiet. No major work needed to date.

joegiant

Must you persist?!!! I'm still seein' 'ol Bessie in the driveway...even as she's not there anymore. Just trying to remember all those good times we had together...and you gotta bring up the "lethal sodium-silicate" stuff. (Picture a guy like Hagrid in the Harry Potter film when the wizarding council or some such thing decided it had to kill/destroy/put to death Buckbeak for infractions against a student. Puddles man, puddles...that's me.)

silvanski

We were looking at two cars, on one we had the financing approved, waiting on the other to come through with our rate and now this... the government turns off the tap... We're duped and probably will have wait till either more funds come available or when the 2009 clearance begins cuz we were relying on the CfC program to help us get a new vehicle.

aviboy97

Dealer here....

I still have several unsubmitted CARS transactions. I am officially craping my pants....

Once I registered and discovered how difficult this was going to be, I knew it was only a matter of time before the bomb went off....BOOM!...

jeffyscott

If it restarts and you can cancel the insurance, after clunkerizing, you should get a prorated refund on the insurance.

Why would you think you need to replace the windshield in order for it to qualify?

jeffyscott

How did you end up with several hundred without submitting them?

From what little I've read, my guess would be that if the deal was done prior to suspension, you will get your money.

94gs

"I just got a note from our legislative folks that absolutely, if people are going out and want to buy a car this weekend, that program is still there, it has not been suspended," Romer said during a live interview. "I can tell you there has been a flurry of activity this morning, working with the agencies, working with Congress, to make sure there's the funds for it."

http://www.cnbc.com/id/32235069

joel0622

We just got the same thing from FMC. So we are back in the clunker business lol

gagrice

This whole goat rope is more fun than the County Fair. I can't wait to hear your stories on trying to collect from Uncle Sam (BO).

british_rover

There have already been report after report saying that the DOT and NHTSA will not leave dealers out in the cold. I am sure that if the money does really run out and a few deals have been put fully through the process they will just authorize a supplemental spending amendment to the bill.

gagrice

I am more referring to the time frame you have to wait for the money. How many times will you have to resubmit your paper work. This is the US Government you are dealing with. I read where people were rejected because there Registration and insurance name did not match exactly. That leaves me out. My Titles include my middle name. The insurance just my first and last. I think dealers are in for a nightmare.

joel0622

I know one thing, this little bit of misinformation will definitley get some people off the fence that were thinking about it.

OK now which of of you conspiracy theorists are going to claim that the goverment and the auto industry planned the fake cancelation last night to make people panic and run out and buy a car today.? :P

greanpea68

I still have several unsubmitted CARS transactions. I am officially craping my pants....


Please tell me you didn't deliver these vehicles? :sick:

GP

joel0622

Have any dealers recieved an approved or rejected claim email yet? I did our first claims on the 28th and have heard nothing back on them yet.

british_rover

Hey the same thing happens if you submit incorrect paperwork to the DMV. All of the paper work better be exactly right with the same middle initial and everything or the DMV, at least the DMV in CT, NY or MA, will reject it.

How long do you think we wait for rebates and stuff from the manufacturers? Most of the time they are credited on our parts statement but many times that doesn't happen till the end of the month. You could do a deal at the beginning of the month and not see incentives for it till a week or so after the end of the month. This happens with stair step programs all the time.

Waiting 10-21 days for the gov't money wouldn't really be all that different.

greanpea68

I thought I saw everything in the business....... Nope, now I have seen more more angry people, people who try to decieve and than want you to deceive ( illegal), have to go.....

british_rover

Oh its back on my man which is a good thing there are couple of jeeps coming in that I think I can get some good wheels and tires to swap with my bad ones.

94gs

The House raced Friday to pass legislation pouring an additional $2 billion into the popular—but financially strapped —"cash for clunkers" car purchase program.

http://www.cnbc.com/id/32235069

nippononly

If I understand correctly, cars you still owe on are not allowed as C4C's. As for your '99 Rodeo, it cannot have a salvaged title. those are not eligible either. If it wasn't totalled when it was rolled and has a clear title, you could use that one towards a C4C deal.

But today is it! The government made an announcement about an hour and a half ago that they would honor deals through today, and after that it is very likely that all the currently-authorized C4C money has been spent.

Expect a C4C II in the future, but maybe at least a month out, and maybe not until October/November.

sherofthe80s

We are so far below poverty we can look up and see the bottom. I am still taising 2 lids and my combined household income is below the poverty level of a 1 person poverty household income and there are 3 of us.

I want to be as delicate as possible here, respecting your opinion and situation completely. However, if I were at poverty level income, there is no way in heck that I would take on a car payment. I wouldn't want to. The reason that some of us are "middle class" is because for years we've been driving our old cars with no payments and made other good (sometimes difficult) choices with our money. We bought a duplex (with hard earned pizza delivery income!) when we were in our mid-20's and lived in rural hell (no offense if you're rural...it's not my cup of tea) for 12 years so we could afford a better life. Having a brand new car isn't a necessity, I wouldn't even call it a luxury. It's an investment that one makes if they can afford to. We bought it through the clunkers program knowing that I will drive this car to the ground...long after the car has been paid off and when I'm done with it, my son will be 17 and he can squeeze a little life out of it. So I guess I'm curious...why do you want or feel that you need a new car if you're at poverty level?

british_rover

Hmhh exactly what I said would happen.

kdhspyder

How ironic.

When first announced the negativistas complained that the program would only appeal to the poor and 'unworthy' who were driving clunkers because that's all that they could afford. No solid upstanding citizen would think of taking advantage of it.

Well this poster is apparently complaining that only the rich and well-to-do can take advantage of the program. The less-well-off financially or less credit-worthy are being shunned.

Irony, gotta love it.

joel0622

it cannot have a salvaged title. those are not eligible either

Where did you see that. I have scoured the rules and have not seen anything that says it has to have a clean title, just a clear one. We are working two deals on salvaged titles now.

Karen_S

Cash for Clunker Limbo: What Next?

White House Says Cash for Clunkers Is Up and Running

sherofthe80s

Not true (god don't let it be true!). Our dealer put our salvaged title through the system and it was approved.

gagrice

NO, Only Edmund's has it all!

british_rover

I concur salvage titles are fine they just can't have a lien on the title.

nippononly

Sorry, I made the mistake of repeating something someone else posted here. I have just looked through the offical regulation at cars.gov and don't see anything prohibiting a salvage-title clunker from participating in the program.

sherofthe80s

I used Edmunds TMV "what others are paying" and the forum for the type of car that we purchased to talk with others about fair prices. It was the easiest car buying experience we've had because we knew what was a fair price vs. a ridiculous offer.

oldfarmer50

"...The less well-off or less credit worthy are being shunned..."

Kinda like the home mortgage deduction.

joel0622

When you say approved do you mean that you went to the goverment site and got the side by side comparison saying it qualifies or they actualy submitted the claim and got the email approval? I am going crazy trying to find some one who has actually submitted the claim and got an approval back. Want to know how long it takes.

sherofthe80s

When we went to the dealership to pick up the car, they told us that we were the 2nd to be put in the system and the 2nd to be approved. From what I understand, after approval, there must be another thing (submission) that needs to be done by the dealer for them to get their voucher in after the sale is complete.

greanpea68

Have any dealers recieved an approved or rejected claim email yet? I did our first claims on the 28th and have heard nothing back on them yet.


We haven't heard anything here Joel....... Have you delivered your vehicles Joel? We are not delivering any untill we get confirmation on our registered CARS

GP

joel0622

Ifthey have all the paper work we need we are delivering them. We have 23 rolling right now and not a quarter of Uncle Obama's money in the house yet. We are not worried about that, we know it will take awhile to get the money, we just want our approval notifications so we can make sure we are doing it right.