Cash for Clunkers - Does it Work for You?

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Comments

  • greanpea68greanpea68 Member Posts: 1,996
    We are working two deals on salvaged titles now.


    Our attorneys and accountants have told us that salvaged titles are no good for the program Joel..... Look it has been a week and still no one is on the same page...LOL :surprise:
  • joel0622joel0622 Member Posts: 3,299
    About 10 minutes ago Clunkers HQ told me that they were fine.
    Get a new lawyer and accountant :P :D
  • chunglauchunglau Member Posts: 48
    That says more about the reading ability of your lawyers and accountants than anything else. And then you have people repeating misinformation.

    The official rule is clear on this. Anyone can read the official rule or the law if still confused.
  • british_roverbritish_rover Member Posts: 8,502
    Your attorneys and accountants are broken. Better see if they are still under warranty. If not I would trade them in under C4C the resale value on those things is terrible so probably the only way to get out of them sideways is through C4C.

    :P ;):D
  • kdhspyderkdhspyder Member Posts: 7,160
    Confidence and calm are the key words here.

    We've delivered everything that has all the paperwork in order ( our scrutiny ). Even if the deals haven't been accepted by NHTSA we're confident that they soon will be. All are legitimate and only the massive volume of submissions nationally and a few nits on the documentation are keeping us from registering all of our 100+ deals.

    More...send more buyers. TYVM.
  • shoeymisshoeymis Member Posts: 12
    Well whether the program is officially suspended or not makes no difference to one of the two biggest dealers in my town. Here is the response I got from them after asking if they were still honoring the program this weekend:

    "As of last night @7pm, we are not accepting vehicles for the cash for
    clunker until further notice. Presently,
    we have over $70,000 of clunkers, that we haven't received vouchers from the
    Gov't for yet. So, until we
    get confirmation from the Gov't, the program is suspended."
  • kernickkernick Member Posts: 4,072
    Here's one person who's glad that all the clunkers aren't getting crushed. Probably this crushing clunkers program will still leave many clunkers around for thos who need them to get by.

    http://www.cnn.com/2009/LIVING/worklife/07/31/camper.work.search/index.html
  • zimbochickzimbochick Member Posts: 30
    I realize $70,000 is a lot of money, but they stand to lose a lot more than that if they don't take part in the impending stampede that's bound to take place this weekend. If I was a dealer, I would have all hands on deck, and then some this weekend. For dealers that have Clunkers 101 down, they should be smiling on Monday.
  • joel0622joel0622 Member Posts: 3,299
    All we lack is inventory. It has been along time since I have seen so much bare pavement on our lot.
  • zimbochickzimbochick Member Posts: 30
    Good point!
  • british_roverbritish_rover Member Posts: 8,502
    I would hope that someone would make the same point I have been making to the people at my dealership.

    Waiting for the CARS rebates is no different then waiting for a manufacturers rebate and we wait for those all the time. Something you sell at the beginning of the month might not have the rebate come in too the beginning of the next month.

    If that sale was part of a volume dependent stair step program it might take even longer to get the money.
  • joel0622joel0622 Member Posts: 3,299
    Very good point!!!!
  • mikeedmikeed Member Posts: 3
    Can anyone else confirm whether the CFC rebate will be subjected to sales tax in California?
  • fisheyesfisheyes Member Posts: 5
    I traded in my 93 Lexus with a salvage title last Sunday and bought a PRIUS using the program, I even paid off the new car already. Believe it or not, Toyota dealer called me last night to bring the Prius back and they will give me back the money and my old Lexus. They said a salvage title vehicle is not eligible. What should I do? Should I bring the car back? Is the dealer right about the limitation?
  • fisheyesfisheyes Member Posts: 5
    From my experience, the sale tax is calculate after the deduction of the $4500.00 rebate. So the out the door price is calculated base on the sale price minus $4500.00 then plus tax.
  • british_roverbritish_rover Member Posts: 8,502
    Yeah one of the guys here was freaking out a little and me telling him that made him feel a little better.

    His counter point was that we are used to waiting on the manufacturer not the gov't and I agreed with that.
  • mikeedmikeed Member Posts: 3
    Thanks for your reply fisheyes.

    From my understanding, based on the cars.gov website, it depends on the state. Is there a rule written somewhere or california government website that can clarify this? My dealership insist that we pay the sales tax on the full price. I want to provide them the correct info.
  • fisheyesfisheyes Member Posts: 5
    I don't know if there is any written rule, but I had bought my new car at a Toyota dealer in San Francisco on past Sunday, and that's how they calculate the final price. My original out the door price was $25000.00, after minus the $4500.00 rebate and the sale tax, I paid $20,085 out the door.
  • zimbochickzimbochick Member Posts: 30
    Here is the link for CA:

    link title

    Sales tax after the rebate is deducted.

    ">link title
  • micosilvermicosilver Member Posts: 212
    traded in my 93 Lexus with a salvage title last Sunday and bought a PRIUS using the program, I even paid off the new car already. Believe it or not, Toyota dealer called me last night to bring the Prius back and they will give me back the money and my old Lexus. They said a salvage title vehicle is not eligible. What should I do? Should I bring the car back? Is the dealer right about the limitation?

    The dealer is right, and you have to bring the car back. Otherwise they will not register it, not submit the loan, and the car will be reposessed.
    You can renegotiate the deal when you come back, because the dealer is not interested in having a new car with miles, and losing a sale.
  • joel0622joel0622 Member Posts: 3,299
    I was told this morning by the C4C HQ that a salvage title was OK. ???????
  • paul007paul007 Member Posts: 30
    From MSN.com:

    "The House voted Friday to rush $2 billion into the popular but financially strapped "cash for clunkers" car purchase program, heeding calls from consumers who hope to keep taking advantage of the trade-in incentives. The bill was approved on a vote of 316-109."

    This will keep it going for a while longer, maybe thru September. IMO they are ready to add a bit more if needed. It's the best stimulus package that Obama has come up with that the American public can wrap their arms around.
  • greanpea68greanpea68 Member Posts: 1,996
    :blush:

    We were told that the other day. The only 2 C4C deals I wrote weren't salvaged titles... I just checked with MGMT and they verified we could use salvaged titles...

    I can't wait to see what happens next. I am actualy pumped to have this weekend off after working 30 days this month....

    GP
  • chunglauchunglau Member Posts: 48
    First let's make sure if the salvage-title car is in drivable condition. If it is not, then the dealer was right in not taking in the car. Some people were assuming that salvage-title = not driveable,
  • mikeedmikeed Member Posts: 3
    This is great. Thanks for the link.
  • kernickkernick Member Posts: 4,072
    It's the best stimulus package that Obama has come up with that the American public can wrap their arms around.

    That's kind of a damning comment. What I mean is that whether it is a D3 auto or a foreign auto much of the stimulus is going overseas. So yes C4C is successful, and yes C4C may help stimulate the U.S. economy, but it is not very targeted. It's like using a shotgun to hit a bullseye.
  • mudhouseholdmudhousehold Member Posts: 22
    :P
  • jenbesjenbes Member Posts: 1
    I haven't been able to get an answer from cars.gov. does anyone know if you are late on paying your registration, does that disqualify you?

    When you renew, you have to pay for the whole year, so it is covered retroactively, you don't pay a pro-rated amount based on when you paid. Also the registration document has an effective date and a renewal date. The effective date is the birthdate and the renewal date is the date you actually paid.

    it has been registered to the same owner for seven years!
  • paul007paul007 Member Posts: 30
    In this global economy you can't have 100%. What matters is how much of that 100% stays here in the US. As with most things, not all, sold in this country the highest cost associated with that item is the cost of labor to make it. If the factory is here in the US as it is with most of the foreign car manufacturers, I have no problem with buying it as long as the country of the corporate headquarters is also allowing the US manufacturers to either build plants there or sell their products there without restrictive barriers. As for the Clunker Program, if 10% profit exits the country, that's business, but 90% stays here and that's good for the US economy. We're still getting the lion's share of the money.
  • accordhunteraccordhunter Member Posts: 24
    Here in NJ, the rebate is taxable by dealer and it was confirmed by the Department of Taxation (609)984-6206.
  • kernickkernick Member Posts: 4,072
    We're still getting the lion's share of the money.

    I'd guesstimate no more than 50% of the money is staying her ein the U.S. Korean cars are almost strictly made in Korea, many of the GM, Ford, and Chrysler vehicles are made in Canada and Mexico, and while some of the Japanese cars are made here in the U.S., many aren't. Or if the cars are assembled here the engines and many parts are coming from overseas.

    I'd rather see the stimulus money go to large project construction. Let's build some roads and bridges, some dams, some nuclear plants, ... It's hard to outsource construction to foreigners thousands of miles away. ;)

    The C4C program doesn't work for me, but it would work for my work-neighbor if he gets down to a dealer quick enough. I keep telling him he'll be a "welfare bum" who already makes enough money that he shouldn't be putting the country deeper in debt.
  • zimbochickzimbochick Member Posts: 30
    Sales tax info for a few states:

    link title
  • zimbochickzimbochick Member Posts: 30
    Hyundai has their new $1.4 billion plant in Montgomery, Alabama, employs 2,700, and the additional supplier jobs will employ 5,500, and that's just directly related to the factory, not the additional jobs in the community. That's just one I know of, I'm sure there are others. The term "American made" is hard to apply any more.
  • joel0622joel0622 Member Posts: 3,299
    Has it been continuosly registered for the last year? Meaning that you did not let the registration lapse at any time for the last 12 months.

    For instance, my Explore tags expire today, I have been way to busy to go renew, it will be next week before I go so I will have one registration expire on the July 31, 2009 and the renewal will be on like August 4, 2009. So I will have a lapse on mine.
  • dtownfbdtownfb Member Posts: 2,918
    Not sure how you have that figured out. This program is helping the dealerships move cars and salesmen make their commission. Yes Hyundai, Honda, Toyota will likely benefit more than GM and Chrysler but at least the money is passing through the local communities first. This is coming from a person who was against this program.

    I had no idea this program would be this successful.
  • paul007paul007 Member Posts: 30
    "I had no idea this program would be this successful."

    Neither did Obama!
  • kernickkernick Member Posts: 4,072
    Not sure how you have that figured out.

    Well if a person goes down to their dealer and buys a Toyota RAV4, VW Jetta, Subaru Impreza, V-6 Chevy Camaro ... which are assembled in other countries, and many of the parts are made in other countries, how much of the $4,500 the government is spending stays in the country? The dealer and salesmen split maybe $500 profit, if the vehicle's somewhat profitable. Ford or GM corporate get a few hundred to put back towards the $30B GM loaned and will never pay back?

    It would be much better to put $4,500 into a construction project and have the $4,500 stay here in the U.S. then to put $4,500 into the auto industry and sometimes more than half stays and sometimes more than half leaves.

    I am not saying that the money does not recirculate thru the economy and cause a multiplying effect. I'm only saying that it is better to start with a larger number recirculating.
  • british_roverbritish_rover Member Posts: 8,502
    According to an Autoblog article yesterday...

    While we're sure it makes sound financial sense to close the Marysville Motorcycle Plant, it strikes us as odd timing to shutter its first U.S. manufacturing site given that Honda is right in the midst of celebrating its first 50 years in America. Conversely, Honda plans to further expand its automotive manufacturing footprint in the U.S. Currently, about 76 percent of all Honda vehicles sold in the United States are produced in North America. Unfortunately, we can now strike the Gold Wing off that list.

    Now that is Autoblog and their idea of journalistic integrity is a little low so I am not sure how accurate that number is. Even if they are off by a fair amount that is still a lot of cars made in the US.
  • kernickkernick Member Posts: 4,072
    Neither did Obama!

    And that should give and others pause on thinking they understand a much more complex issue/program - health care. ;) That' shouldn't be rushed until they have a better understanding of the thousands of pages of rules I'm sure that would entail.
  • oldfarmer50oldfarmer50 Member Posts: 24,312
    "...Here in NJ, the rebate is taxable..."

    Same here in NY, the greedy bastards! :mad:

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • timmbojtimmboj Member Posts: 123
    If the new vehicle I'm interested in isn't on the lot, is it possible to purchase an ordered vehicle? Like, do all the paper work as if new, sign all the papers, then wait for the new vehicle to arrive.
  • sherofthe80ssherofthe80s Member Posts: 43
    I'm peeing myself over here about this salvage thing...

    Ya know, I lost sleep on Sunday night before we went to the dealership about this whole thing. Then I picked up my car and felt safe, salvage title and all, once we were "approved by the system". I'm pretty sure they were submitting the voucher today because they called for a couple more things from me. The dealer actually asked me to drop the window sticker off and there is no way that I'm going near that place for fear my Mazda will disappear before my very eyes (so I faxed it over)!

    I guess I'll know soon enough if my sweet Mazda5 will have to go back :( . But..then again, if the C4C program said it was ok then who better to give the info? But, then again, if I've already put a few hundred miles on the car, maybe they'll give me a good enough deal to be able to keep it :) . But, then again....
  • tsgeektsgeek Member Posts: 1
    Question, say I use Chrysler's deal and end up with $9,000 back. Can I use some of that money to pay off/down the loan I have on another car (not the clunker I'm trading in)? I'd love to be able to pay off my newer car and keep driving it, while still using some of the $9,000 as downpayment on the new vehicle.

    Make sense? Or dreaming?
  • jeffyscottjeffyscott Member Posts: 3,855
    The dealer must get much more than that "profit", all the dealership employees get paid, don't they? The dealership has to pay all their other bills, as well. Profit would what is left after paying all expenses of the business, including probably a very large salary to the owner.

    In addition, it is just possible that some of the money that goes to employees of foreign manufacturer's gets spent on products from the US. We do have a large trade defecit, but there still is a huge amount of exporting of products from the US.

    Finally, other countries are doing similar programs and there may be cars from US based manufracturer's being purchased under their programs.
  • explorerx4explorerx4 Member Posts: 20,839
    GP sells in new england, which is kind of a conservative place.
    the lawyers and accountants figured there were plenty of C4C deals to be made, so why expose the dealership to that risk?
    2024 Ford F-150 STX, 2023 Ford Explorer ST, 91 Mustang GT vert
  • gracenumber2gracenumber2 Member Posts: 19
    Thank you thank you
  • kernickkernick Member Posts: 4,072
    The dealer must get much more than that "profit", all the dealership employees get paid, don't they?

    Nope. Do a little research. You'll find that most dealerships make very little on new car sales, and rely on making more per vehicle on selling used cars. Dealerships also make a lot of $ on servicing vehicles, selling their parts and services for list price.

    If anything the C4C program will decrease the amount of repairs and service needed as these newer vehicles will be towed much less, have new batteries, tuneups, engine and transmission rebuilds, shocks, struts and tires ...

    Even vehicles which are assembled in the U.S. do not mean that the majority of the labor and wages of the build are in the U.S. Someone mentioned Hondas - I know for years that many of the engines and transmissions are imported, along with almost everything else electronic. So a U.S. assembled Honda probably still has more hours of foreign labor in the parts than U.S. labor.
  • chunglauchunglau Member Posts: 48
    GP sells in new england, which is kind of a conservative place.
    the lawyers and accountants figured there were plenty of C4C deals to be made, so why expose the dealership to that risk?


    The law and the rules document are very clear about this, so what risk are you talking about? They can easily called Clunkers HQ to clarify for them.

    This has nothing to do with where the dealer is located.
  • jeffyscottjeffyscott Member Posts: 3,855
    You misunderstand my meaning, which was that revenue that goes to expenses such as salaries is not profit, therefore the amount of "profit", which is what is left over after paying all expenses is not of much significance. A business can make no profits and yet still pay out a lot of cash in salaries and other expenses.

    Clunkers were unlikely to be serviced at dealerships, I would assume.

    Would your dealership rather sell 10 new cars or 50 this month? If the answer is 50, why would that be the case, since nearly no revenue to run the dealership is supposedly coming from those new car sales?
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