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Cash for Clunkers - Does it Work for You?

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  • fezofezo Member Posts: 10,386
    Wow. If I were buying the last thing I'd do is throw away my savings on junk like that. MAybe I;d consider a higher level model but the rest is crap.
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • kathyc2kathyc2 Member Posts: 159
    Agreed!
  • stephen987stephen987 Member Posts: 1,994
    Maybe the C4C customers are astute, informed customers who know the minimal value of those "extras"--just as they know when to trade for maximum benefit!
  • fezofezo Member Posts: 10,386
    Indeed. My only mistake has been buying vehicles that are too economical and don't qualify. I'll live.
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • Sandman6472Sandman6472 Member Posts: 7,218
    Isell, the dealers need to follow the rules...pure & simple so bringing in the other costs the dealer has isn't germane to the posters question about the salvage information. If the dealer doesn't follow the rules...isn't that dishonest, something you like to say about customers? Fairness has to be played on both sides sir...correct?
    And Mitch, who are you & your relative to label people "cheap" because they only want to buy the car. Do you always purchase an extended warranty on every electronic product you buy...or even on every vehicle you've ever bought? Who made you the "decider" of how people should spend their money...I'm confused here...please enlighten me. People are buying what they can afford and your relatives dealership is making $ so she and others like her won't loose their jobs if the industry goes south. Both you guys need to think before you speak/type because it doesn't put y'all in such a good light...G-d gave y'all brains...try to use them!

    The Sandman :sick: :shades:

    2023 Hyundai Kona Limited AWD (wife) / 2025 VW GTI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)

  • mitchfloridamitchflorida Member Posts: 420
    You are forgetting that the sales and finance personnell work on commission, not salary. It is like going to a very upscale restaurant and ordering a very delicious and expensive meal, and afterward not tipping the waiter, saying you don't have enough money to pay a tip.

    No, you don't have to buy everything they offer you, but what does it take to get a maintenance plan that saves you money on oil changes, etc.? Have some consideration for the people who are serving you.
  • stephen987stephen987 Member Posts: 1,994
    Have some consideration for the people who are serving you.

    Oh, give me a break! Am I supposed to send them flowers the next day?
  • patti11patti11 Member Posts: 11
    I called the dealer AGAIN today to find out if my paperwork of last Wed. was processed and am I in or not? The paperwork was NEVER processed!!! I asked why not?????? I was told they are "holding" a stack to send them in all at once. Then I was asked, "did you bring in the required documents, title, etc.?" I said no one told me I had to do this at this stage and besides, my calls were not being returned. I was told......then bring them in and we'll put them in your folder. I said then what?? I was told then we will begin processing it. Once it's processed, it takes another ten days after to get authorization. Then I was told of stories about how dealers didn't cease the engine properly and were liable for a $15K fine???? I don't understand what is going on with this dealer. Anyone else going through this scenario?
  • imidazol97imidazol97 Member Posts: 27,676
    >We have did 40+ this weekend

    Glad to hear your US brand store is doing great with the $4C. :)

    2014 Malibu 2LT, 2015 Cruze 2LT,

  • beam19beam19 Member Posts: 6
    That is the worst comparison I have ever heard....you tip for a service...trying to sell someone HIGHLY marked up extras is NOT a service.
  • cyclone83cyclone83 Member Posts: 60
    Here is the response back:

    Even though one vehicle model may appear to look the same for several model years, it does not mean that the fuel economy values will be the same. Manufacturers make changes to their vehicle models from year to year and those changes, though they may not be obvious, can impact fuel economy. For example, manufacturers may reduce a vehicle’s weight by removing a feature or add weight as a result of a new feature. These are often very subtle changes that may not be noticeable but they do impact the fuel economy ratings. Manufacturers may also make changes to axle ratios, transmission shift points, engine system calibrations, or a myriad of other adjustments that can have fuel economy impacts. Finally, tests that EPA performs in its laboratory may result in a higher or lower fuel economy value for a particular model year compared to other model years.

    All we have are the test results (which I checked again) and our knowledge of what factors have an impact on fuel economy. For more specific questions about these particular vehicles, you could try contacting Ford.

    Hope that helps...even though I suspect it's not the answer you were hoping for.

    Regards,
    Mary


    I'll see if I can have her email you directly and the email you listed.
  • philliplcphilliplc Member Posts: 136
    they changed the disabling clunker engine thing. the dealer isn't required to do that now until the credit has been processed and approved.
  • richbuckrichbuck Member Posts: 3
    My wife and I just purchased a new Rav4 with the C4C deal..... Regarding the thriftiness of some of the C4C buyers.. I think that many people might be stingy out of necessity. Many of us feel we need a car, but really don't have the ability to come up with the necessary down payment on our car of choice. So, it's not all about stinginess.. Sometimes we have to worry about the food on our table too...

    In any event, we purchased an 8 year 80k warranty... I knew when it was being presented to us that the price was high... Nevertheless, we paid the price. The dealer treated us great.. giving us $1300 off sticker..and a great interest rate.. (5.4%) No haggling.. no bull. We didn't mind paying about $500 extra for the warranty.. .

    We got $4500 for my trade. The car would have brought $1500. Toyota gave us another $1000 on rebate.. so, letting the dealer make some money on the warranty is not a great concern of mine.. I only buy a car once every ten years... so why not give them a tip with the money that we received freely? Afterall, this money was not only for the consumer, but for the USA auto industry and our local businesses too..
  • jeffyscottjeffyscott Member Posts: 3,855
    the people trading in these old clunkers are...very cheap in terms of buying a maintenance plan, extended warranty, and, Lo-Jack etc

    IOW, they are not as dumb as the usual parade of customers...
  • imidazol97imidazol97 Member Posts: 27,676
    >USA auto industry

    ???? Toyota is a foreign company.

    2014 Malibu 2LT, 2015 Cruze 2LT,

  • jeffyscottjeffyscott Member Posts: 3,855
    I will have to wait because I read how the dealer's are all doing great and have no reason to deal.

    That's a good point those with potential clunkers had sat on the sidelines for months waiting to see if anything would come of this. Now it is those who do not own a clunker who should probably wait for the end of this mad rush and let things calm down. Especially if they are looking to buy a vehicle that meets the qualifications to be purchased under the clunker program, such as a car that gets over 22 mpg.
  • dmdcashdmdcash Member Posts: 15
    AGAINST extending the CFC has changed her mind...I think it's going to go through.

    http://www.foxnews.com/politics/2009/08/03/key-senators-endorse-extension-cash-c- lunkers/
  • paul007paul007 Member Posts: 30
    Hey, I'm only buying a car and not marrying into the family. It's a business deal. I give you money and you give me the car. I then drive off the lot. No special favors were given on either side. Here in the South we call what you are doing "Poor Mouthing".
  • isellhondasisellhondas Member Posts: 20,342
    Was that meant to be an insult or what, Sandman?

    We are besides ourselves trying to sort through this program and we are definatly playing by the rules. I can't speak for othr stores, just ours.

    Some asked about salvage value and I answered them. We give the customers 50.00 and hope we won't be losing money when the smoke clears.
  • richbuckrichbuck Member Posts: 3
    "USA auto industry - Toyota is a foreign company"

    My friend.. All those men and women working at the dealership were residents of the good ol USA.. If their jobs are to continue, they need to be supported... In addition, the tax money that we paid (over $2000) will help both city and state pay down debt and to keeping others working within our communities.
  • billsbuddiebillsbuddie Member Posts: 41
    The Edmunds TMV will indicate one of the affects of this program.
    I priced a Hyundai Elantra Touring, base model with a/t, mud gds and carpet mats on July 22 and the TMV after rebate was $15972.

    On August 3 that exact car now has a TMV of $16,818 after rebate. That is an increase of $846.00.
    Hyundai also had 4.39% interest in July which is no longer available.

    Is this a classic example of inflation? Anytime government money is put into circulation without a corresponding increase in productivity it will creat inflation.
  • kdhspyderkdhspyder Member Posts: 7,160
    I love a good sales surge as much as anyone. But it’s not that simple. First, it’s not clear that cash for clunkers actually increased sales. Edmunds.com noted recently that over 100,000 buyers put their purchases on hold waiting for the program to launch. Once consumers could start cashing in on July 24, showrooms were flooded and government servers were overwhelmed as the backlog of buyers finalized their purchases.

    The analysis is only partially correct because he's not seeing the actual types of buyers coming in the front doors of dealerships. Yes certainly I believe that there was some 'wait-and-see' early in July and yes certainly there was the deluge last week maybe as a result of that 'wait-and-see'.

    However what's missing is that when the deluge hit it was not at all the typical buyer that comes in shopping year or even every 3-5 years. The buyers that showed up are once-a-decade buyers. Their clunker trades date from the mid-90s in most cases. In most cases in my narrow perspective these are the only vehicles that these traders owned over the last 10-15 years. Yes there might be a newer one for the other driver(s) in the family but generally these traders are those that would have actually run the vehicles into the ground over the next 5-6 years ... and then come shopping.

    These are actually new additional shoppers/buyers that last came to buy a vehicle in the Clinton Presidency ....at the time of $.90 cent gas; pre dot.com bubble/bust; pre-Sept 11; pre-Iraq; pre-$5 gas.
  • kdhspyderkdhspyder Member Posts: 7,160
    Fox News is a bunch of clowns. Watching it ( or MSNBC ) makes me want to wallow with pigs. Watching either makes me feel stupider than when I started.

    I'm appalled that a good part of the American public uses these outlets for information. It's scary that so many fellow citizens might be getting dumber and dumber every day.
  • carlton252carlton252 Member Posts: 1
    Re: salvage money to the customer. My 'clunker' is worth $4500 or quite a bit more than that (2001 Ford Sport Trac-loaded w/ $1000 in accessories to boot). Could salvage be considerable and how does one determine that value to be forewarned against dealers who don't play nice.

    Thanks
  • stephen987stephen987 Member Posts: 1,994
    If your clunker is worth anything once the engine is destroyed, you still have to gamble that the dealer won't try to cheat you out of any significant salvage value. If your SportTrac is nice at all, then you should sell it privately.
  • kdhspyderkdhspyder Member Posts: 7,160
    However 'Enemy of the State' with Will Smith and Gene Hackman is far closer to reality.

    You did know that your cell phone is a listening device for any agency that wants to hear what you have to say...anywhere in the world. That is after they track your every movement with it.
  • kdhspyderkdhspyder Member Posts: 7,160
    120 +/- here. Thus now we're down to less than 14 days of inventory on hand. That's way too low.
  • kathyc2kathyc2 Member Posts: 159
    Nope, that's a classic example of government intervention in free market and supply/ demand economics.

    Demand is up due to C4C and supply is down due to C4C, hence the higher price.
  • kdhspyderkdhspyder Member Posts: 7,160
    It's definitely for upper income people...as long as they are not fixated on driving only Lexus', BMW, Mercedes or Cadillacs.

    Gross Monthly incomes ranging from $33,000 to $100,000 and well above are all in the market. One key fact though is that nearly every buyer we've seen has title in hand, FICO scores above 750, almost no debt and all the documentation neatly in order.

    This profile fits the smart, sensible buyer that knows a good deal and can react immediately simply by reaching into the safe deposit box and going down to the car store.
  • kdhspyderkdhspyder Member Posts: 7,160
    Toyota pays taxes to the IRS on it sales here. It is very much a US Corporation and a US taxpayer just like the rest of us. In fact it pays taxes which are several orders of magnitude greater than you or I. Ditto, Honda,

    Unfortunately you'll just have to deal with that reality.
  • joel0622joel0622 Member Posts: 3,299
    IOW, they are not as dumb as the usual parade of customers...

    I am selling the crap out of service plans on the clunker deal. The majority are the 100K plans. I guess I am dealing with very well informed consumers who can see value for there dollar.
  • 94gs94gs Member Posts: 59
    This profile fits the smart, sensible buyer that knows a good deal ..

    Yep. These are the people who pay tax reliably year after year. It's nice to get a bit back. :)
  • joel0622joel0622 Member Posts: 3,299
    Thanks, we have had another big day today also. I think we just delivered #10. I have lost track of them lol.

    Though I expected nothing less here then to have a group of people bad mouthing the program I have to say this is the only "stimulus" plan I have seen work so far and have such a good trickle down effect. Allot of people other then car dealers are prospering from this.

    Like I said in a previous post, I am having success in the finance department also, even though the majority of the first wave were cash buyers we are now getting into allot of finance deals. the great thing about the C4C deal is that NO ONE IS OUT OF EQUITY!!!!!! My biggest fight on a daily basis is gone. They are all back of cost because all the trades are paid for and they are getting big bucks plus big rebates plus big disounts. its a cake walk LOL.
  • tidestertidester Member Posts: 10,059
    It is like going to a very upscale restaurant and ordering a very delicious and expensive meal, and afterward not tipping the waiter, saying you don't have enough money to pay a tip.

    Bad analogy. It's more like going to an upscale restaurant and, after stuffing yourself with the main course, declining the dessert offered by the waitperson. Or worse yet, declining the minted toothpicks at three dollars a pop. I'll decline those extras but will still give a tip. :)

    tidester, host
    SUVs and Smart Shopper
  • jmonroejmonroe Member Posts: 8,989
    No, you don't have to buy everything they offer you, but what does it take to get a maintenance plan that saves you money on oil changes, etc.?

    I see you’re from FL and being surrounded by water probably explains why you’re all WET.

    You’re right, a customer doesn’t have to buy everything nor do they have to buy anything. The dealer that sold the car should be happy that they sold the car and not the guy next door. If I were buying in this C4C program I wouldn’t be giving away any of the money that I received just because it was given to me. You may call that being “cheap”; I call it being wise and choosing how I want to spend my money.

    FWIW, how do you know that the money that isn’t given away in the F&I office isn’t being put to better use like groceries, medical bills, children’s education…get it?

    jmonroe

    '15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl

  • tidestertidester Member Posts: 10,059
    Those are valid points

    The buyers that showed up are once-a-decade buyers.

    That would be some of them but the same dynamics apply. They may have put off buying waiting for C4C or bought "early" to take advantage of the program.

    tidester, host
    SUVs and Smart Shopper
  • joel0622joel0622 Member Posts: 3,299
    Damn Jmonroe, quit acting like you don't know where your next meal is coming from. :P

    If the people here were as savy with there money as they say not one of them would walk out of the store without a maintanence plan. I sell a 45000 mile plan for $795, covers all scheduled maintanence, it also covers all the wear items to include windshield wiper blades, brakes, belts, hoses, etc. There is no place in the world you can properly service your car for 3 years for $795.

    Instead they wear it like a badge of honor on there sleeve that they spent no money in the finance office and then proceed to spend $1200 over the course of 3 years on what they could have had for $795.
    '
    Can I write you up? :D;)
  • joel0622joel0622 Member Posts: 3,299
    If this did not bring on a sales surge then you can color me stupid. The only reason we are having monstor numbers is because of the C4C program. Belive me I know what it looks like when something works. The last time we did anything close to this was the fiirst time back in 2001 when we had 0% for 72 the very first time.
  • billsbuddiebillsbuddie Member Posts: 41
    Maybe or maybe not. I don't like to prepay for anything if I don't have to, hell I might not live long enough to get my money's worth. It does not really make sense to insure for anything that you are going to purchase anyway, thinks like oil changes and wiper blades are cheaper at Walmart.
    To each his own, but you would not make a big commission on those contracts if the customer was really going to get so much back from purchasing them.
  • ministerpaul08ministerpaul08 Member Posts: 5
    Has anyone read the airhead comments by so-called experts..."Cash for clunkers a success for bring an end to the car sales slump and the recession." I ask you is King Saul now also among the Prophets?" This is complete nonsense. I agree with fellow bloggers in stating this C4C program alienated a majority of car buyers as manufactures quickly stripped more lucrative incentives as government ... I mean taxpayers' money became available. Chrysler for one had incentives reaching $7000 if you qualified, which did not help the sales of their poorly made cars. This also led dealers to jack their prices up in order to pad profits. C4C is not a very good deal because we shall foot the bill later. And as the excitement dies down and the money dries up we will be back at square one... a recession. Trust me as dealers claim to empty showrooms there are ports and test tracks filled with thousands of unsold cars.
  • jeffyscottjeffyscott Member Posts: 3,855
    We don't put 45,000 miles on a car in 3 years and we spend no where near $795 on maintenance in the first 3 years.

    A quick check of my maintenance and repair log shows that I've spent $633.20 on our VW Jetta in the 4 years since we bought it. For the first 3 it was about $435.

    I've only had my Mazda6 for 2.5 years and have spent $183 on maintenace. I'm due for an oil change, but that is gonna be just about free this time. I'm also planning to have tires rotated and balanced for $20. The only other thing it will need before the 3 year point is one more oil change. So I would estimate a 3 year total of about $230.
  • stephen987stephen987 Member Posts: 1,994
    I'm with you, jeffyscott. There's no way that I'd end up spending $795 on maintenance in 45k miles, let alone $1200, unless they're including a set of tires in the mix. Then again, I drive normal cars, not the inflated egomobiles from Jaguar, BMW, et al. My 2000 Ford Ranger, in two years and 25k miles, cost me $80 for maintenance. Total. Four oil changes, with free tire rotation thrown in. If I had kept it longer, the 30k maintenance would've added another $120.

    The Hondas have been more expensive than that, but still nowhere near $795.
  • beam19beam19 Member Posts: 6
    Do you think anyone is going to buy that BS.....in the first 45000 miles there is no way you should expect to spend more than the $795 on maintenance. Wiper blades, brakes, belts and hoses? Come on....
  • cyclone83cyclone83 Member Posts: 60
    Sounds like you will probably be fine. If the dealer calls you about it, tell them to file the paperwork as 7/11 since the NHTSA said it would honor transactions before the 24th (like you mentioned)

    Otherwise, I am/was in the same exact situation as you. We completed our transaction on 7/25, and then the mileage was updated for our clunker on 7/26 and we no longer qualified. The dealer tried to give some crap about it, but I got in contact with a gentleman at the US DOT and he said if we have printouts from the 25th, the NHTSA will honor the transaction. Let me know what happens with your deal.

    And if you have to go back to the dealership for any reason, don't take the Prius, drive a different car!
  • dwreillsdwreills Member Posts: 9
    Dangling this "plastic" carrot before "hungry" American economic eyes is arrogant and insulting providing no "nutritional" value to the "monetarily sickest" members of our country. I am 55 and have never purchased a new vehicle nor am I ever likely to do so. Would I like to? Sure, I get as tired as the next guy at my age crawling under them to do my own maintenance.
    My current "ride" is a 19 year old "rice-burner" that I purchased for $175.00 (delivered to my driveway) and have spent $97.00 in parts to get it on the road. It runs great, doesn't leak or burn anything it's not supposed to, has more acceleration than I'll ever need to use, consistently gets 33 MPG combined, has 234,000 miles on it and, as a model, has a long history of running well over 300K. It has practically no rust even though it has been in Michigan since new and parts are plentiful and cheaper than most domestics I've owned (which is a lot).
    So if I'm supposed to trade in this gas-guzzling clunker (after all a Prius is supposed to get much better mileage), then somebody needs to explain to me how $3500 - 4500.00 off the top or in rebate will help provide the monthly payments (I've never had) for the rest of the car's price over the next 5 years as well as the exorbitant insurance premiums required for a car being financed. I suspect my car probably wouldn't qualify under the guidelines because it's too clunky and not guzzly enough to be worthy of crushing and sending to the Chinese as scrap (which is where the trade ins are all going). This kind of program is geared toward those who are already able and inclined to buy new and just need the latest "deal" to get them in the showroom.
    Personally I find this "appetizer" to be just another of the increasingly "unpalatable offerings" on the "menu" this President is continually "serving up" (was it 750 or 850 billion to the banks with no strings attached, who cares what's 100 bill. among friends). If much more gets "stuffed down our throats" I for one am likely to "vomit" this King and his House of Lords out of office, or did we all collectively forget that this is supposed to be government of, by and for the people and that we have the right to dissolve it if it becomes oppressive.
    I've worked hard all my life only to be taxed or sued by some government entity to keep my family in poverty. If God only "asks" for 10% of my income, why does the government "require" 38%? To finance "swill" like this? An over fed sow can crush it's young and a boar will eat them alive. So,"belly up to the trough" if you're willing and able but don't protest when the big pig comes back to "bite" you down the road.
  • beemdalebeemdale Member Posts: 1
    Is the buyer on the hook if the Gov does not reimburse the dealer for the clunker? Can the dealer legally demand that the buyer agree to cough up the $3500 or $4500 if the Gov does not reimburse the dealer?

    Are any dealers demanding that buyers sign something that makes the buyer pay if the Gov reimbursement to the dealer falls through?
  • kdhspyderkdhspyder Member Posts: 7,160
    It's been addressed several times back in this thread...our position is nothing is final until the DOT says so.

    If a specific deal is 'backed up' for whatever reason then we'll just undo it and return everything to square 1.
    If a buyer wants that vehicle and the DOT says 'No rebate' then the buyer has the option to come up with the additional money to complete the deal...or return the vehicle.

    The buyer and we sign an agreement before the final paperwork is done.
  • british_roverbritish_rover Member Posts: 8,502
    've worked hard all my life only to be taxed or sued by some government entity to keep my family in poverty. If God only "asks" for 10% of my income, why does the government "require" 38%? To finance "swill" like this? An over fed sow can crush it's young and a boar will eat them alive. So,"belly up to the trough" if you're willing and able but don't protest when the big pig comes back to "bite" you down the road.

    I am going to ignore most of your post cause it is all garbage but if you are really in the 38% tax bracket, isn't the top tax bracket for individuals 35% now anyway, I doubt your family is in poverty.

    I suppose there are some high tax states that might bring your total tax bill up over 38% but even in those states your income must be substantial to hit that tax bracket.
  • jeffyscottjeffyscott Member Posts: 3,855
    I am 55 and have never purchased a new vehicle nor am I ever likely to do so. Would I like to? Sure, I get as tired as the next guy at my age crawling under them to do my own maintenance.

    ...

    If God only "asks" for 10% of my income, why does the government "require" 38%?


    So you are in the 38% tax bracket and yet can not afford a new car or to pay someone to maintain your old one? You must do a pretty poor job of managing your money.

    We barely touch the 25% bracket and yet have bought two new cars in the last four years and that without any clunker rebate. I also gave up crawling under cars when I was about 25.
  • jmonroejmonroe Member Posts: 8,989
    There is no place in the world you can properly service your car for 3 years for $795.

    Well, you can count me as another that hasn’t spent anywhere near $795 in the first 3 years on ANY car I’ve Ever owned. I do oil changes every 3/4 K miles or not longer than 4 months. Wiper blades are replaced once or twice a year. I’ve never had to replace belts or hoses in 3 years but even if I did it wouldn’t take me anywhere near a $795 package price that would make me consider that a good deal.

    Can I write you up?

    Yeah, just for you, I’ll be a laydown. :)

    jmonroe

    '15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl

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