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Cash for Clunkers - Does it Work for You?

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Comments

  • I don't see how you come to that conclusion from that sentence. My vehicle has been continuously insured and registered to the same owner (ME) for the full year - It also says that vouchers are limited to one per person - OK. The net effect is the same - A new car is sold, an old inefficient car is off the road. But if you called the hotline and that is what they told you - that is a different matter. But the language on this is a little vague.
  • gagricegagrice Pahrump, NevadaPosts: 31,450
    I have to agree with you. I read it several times and it just says continuously registered and insured. Not by whom. I would think within the family should not be a problem. I would give it a try and see if a dealer will accept it. Once the deal is done it is the responsibility of the dealership to convince Barry to give them the $4500.
  • oldfarmer50oldfarmer50 Posts: 17,318
    "...Wouldn't a better name be "Cash for Guzzlers"?..."

    What? And risk having the government haul me off the porch for drinking beer? Don't give my wife any ideas. :mad:

    2019 Kia Soul+, 2015 Mustang GT, 2004 Chevy Van, 2000 Chrysler Sebring convertible

  • oldfarmer50oldfarmer50 Posts: 17,318
    "...I resemble that remark..."

    Nah, he was talking about my Ford which gushes more oil than Jed Clampet's back yard. BTW, I dress like Jed Clampet when I go car shopping. It throws the salesman off and he goes for the mini without a fight. ;)

    2019 Kia Soul+, 2015 Mustang GT, 2004 Chevy Van, 2000 Chrysler Sebring convertible

  • jacke88jacke88 Posts: 1
    I agree with you. I haven't had a car loan in over 20years, but now I have no choice but to buy old or new. I am looking to buy a new car and cash in my old one. But I have so many questions. This cash for clunkers would give me $3500 a dealer told me. Edmunds says to try to get down to the TMV price or close to it. If I do that I don't think the dealer will want to give me the $3500 off then. He will make some excuse, but the question is if the government is giving them the $3500 back why should they care. The negoitiating gives me a headache. I originally was looking for a 2-3 year old, but everyone is trying to sell me new. I know there are more incentives out there for new, but the monthly pymt may be too much even with the incentives. Any suggestions I would greatly appreciate. :confuse:
  • ingvaringvar Posts: 205
    Wouldn't a better name be "Cash for Guzzlers"?
    Nope, because "fat cats" drives nice cars with V8, V10 and V12 engines and don't care about gas price.
  • dtownfbdtownfb Posts: 2,918
    The program will likely start on July 23rd although dealers can start taking cars now but if the rules change, they risk losing out on the voucher. so most are waiting until then. The best place to follow the rules of this program is http://www.cars.gov/
  • greanpea68greanpea68 Posts: 1,996
    Once the deal is done it is the responsibility of the dealership to convince Barry to give them the $4500.

    Good luck getting the deal done.....
  • vwgregvwgreg Posts: 22
    the program is only for new cars. the dealers will not necessarily expect to increase their margins. they will simply be happy that they are selling more cars. the 3,500 or 4,500 will also help alot with the financing aspect of it due the 3,500 or 4,500 being shown as downpayment money. this will help alot of cars to get financed w/ medium credit as the downpayment money helps the loan to value alot.
    i am already taking cash for clunkers deals. vw has alredy given me programs. they are on board 100%.
  • exb0exb0 Posts: 539
    Based on my experience, TMV is too high. Most cars today can be purchased under invoice minus rebates and factory to dealer incentives.

    “Cash for Clunkers” is like buying a new car without a trade-in. These are the easiest transactions you can have, that can be pre-negotiated over the phone or internet before you even go to the store. Once you have negotiated a price for the new car, just go to the store and tell them: “BTW, this is my clunker, so please deduct another $3500 or $4500 off.”

    First, determine exactly the car that you want, down to every single option, and interior and exterior colors. Next, go to Yahoo Yellow pages and find every dealer that sells your brand that you will be willing to travel to. Go to those dealer web sites and “Request a Quote”. In the comments section tell them that you are looking for an “Out the Door” quote for the car. List all the options and color choses. The Out the Door price includes all the fee and taxes. That the price you should finance minus “cash for clunker”.

    By the way, get pre-approved before you go to the dealer. This way you will know the maximum interest rate you should pay.
  • mikemartinmikemartin Posts: 205
    This program will fail.

    Here is a good summary of the requirements, and yes, the car being traded in MUST BE REGISTERED FOR AT LEAST ONE YEAR TO THE SAME PERSON BUYING THE NEW CAR.

    http://www.usnews.com/articles/business/your-money/2009/07/02/making-sense-of-ca- sh-for-clunkers.html

    You can't just go out and buy a clunker and trade it in.

    Also, the dealers are worried that the money allocated will run out by August and dealers are being told that manufacturers will pull incentives and rebates during the time this program is in effect.

    This is a lemon of a bill: :lemon:
  • british_roverbritish_rover Posts: 8,457
    Really dealers are being told by manufacturers that they will pull their incentives?

    None of the seven brands I sell have had that come down from our reps. In fact Volvo drastically increased their incentives for this month on several models. I am sure other brands will be increasing their incentives this month too but I sell more Volvos then anything else so I pay attention to their incentives more.

    The program won't even start till the 23rd of July so how is the money going to run out by August?

    I wouldn't want someone to be able to take advantage of the program by buying a clunker car a few months ago and then trading it in now. It is a good idea that they put the one year time limit on the bill.
  • Cash for clunkers is a lame brain legislation passed only to fool the American people into believing that Washington is doing something. Aren't people buying "clunkers" in droves because they can't afford car/insurance payments. A recent visit to the local auction revealed heavy sales of clunkers and a recent visit to Chrysler revealed a trickle of sales. Its common sense...people without jobs are going to buy clunkers.
  • ingvaringvar Posts: 205
    Aren't people buying "clunkers" in droves because they can't afford car/insurance payments.
    True, but now people "have" $3500(4500) for "down-payment" and could buy a new car, drive it for couple months and ask for a new bailout because of "predatory lending" and other BS.
  • hpmctorquehpmctorque Posts: 4,600
    " It is a good idea that they put the one year time limit on the bill."

    Why would it matter?
  • isellhondasisellhondas Issaquah WashingtonPosts: 20,345
    "Most cars can be purchased under invoice minus rebates and factory to dealer incentives"

    Oh really? So, most cars are sold at a loss?

    Don't think so. Why would you post something like this? People tend to believe what they read in forums like this!

    "Based on my experience"

    Care to elaborate?
  • vwgregvwgreg Posts: 22
    of course you cant just go buy a $500 toaster of a car and turn around and claim it for 4,500. that would defy the integrity of this bill.
    vw, mazda and bmw have all kept virtually the same amount of incentives for july vs june. i dont know where anyone gets the idea that the manufacturers will pull back on incentives. the manufacturers are thrilled with the bill as it will sell lots of new cars for them.
  • british_roverbritish_rover Posts: 8,457
    Because if they hadn't people would have started buying up clunker type cars a few months ago and hoarding them to get the 3,500 or 4,500 dollar credit. I know people that were thinking of doing that but ended up not because they hear their would be requirement to own and insure the car for one year.
  • lemkolemko Philadelphia, PAPosts: 15,306
    Hmmm!

    5 Clunkers X $4,500 = Free Fusion! :P
  • mikemartinmikemartin Posts: 205
    Hmmm!

    5 Clunkers X $4,500 = Free Fusion!
    :P

    Nope. There is a limit of one clunker per person, again, owned and registered in that person's name for a minimum of one year immediately prior to trade in.

    1 Clunker x $4,500 = 1/5th of one Fusion.
  • exb0exb0 Posts: 539
    Oh really?

    Really. I purchased an 09 CR-V EX-L AWD for $25,000 with $100 for junk fees and no accessories or trade-in less than two months ago. Edmunds invoice is $26,000. Factory marketing support was $500.

    Care to elaborate?

    Whenever I buy anything for myself or friends, it is always hundreds under TMV. That had been only Hondas and Toyotas, not exactly stale merchandise.

    As a matter of fact, TMV price is so good that one Toyota salesman I dealt with had a printout from Edmunds describing TMV price posted on his desk. He used that to convince customers to pay that.
  • fezofezo Manahawkin, NJPosts: 10,379
    You're no fun! I like the way lemko thinks...

    If what they really wanted was junking the old fleet they'd set it up that way - let me find 5 clunkers (you'd need a better definition for clunkers) and haul them in.

    in reality it's just a thing to try and move people into showrooms. With any luck it will move some iron.
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • hpmctorquehpmctorque Posts: 4,600
    I understand, but wouldn't the objective of selling new vehicles while destroying old ones still be achieved? Why would that be worse than someone who had owned the vehicle for a year trading it in? Wouldn't the end result the same?
  • fezofezo Manahawkin, NJPosts: 10,379
    I'm with you on that. What does it matter that it was owned and insured for a year make? They'd move more new stock and crush more clunkers if they didn't require that.

    Sure some folks would bend the edges of the law to their advantage but folks are going to do that anyway.
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • hpmctorquehpmctorque Posts: 4,600
    "in reality it's just a thing to try and move people into showrooms. With any luck it will move some iron."

    If $3,500/$4,500 moves some iron, why not double the value of the vouchers and move even more iron. It would just increase the deficit some more, but what's an extra billion?
  • ldislerldisler Posts: 83
    vw, mazda and bmw have all kept virtually the same amount of incentives for july vs june

    Mazda did eliminate the $500 incentive on the Mazda 5. Which is a vehicle that qualifies
    for $4500.
  • fezofezo Manahawkin, NJPosts: 10,379
    Well, that is a different story. The old a billion here a billion there and pretty soo you are talking about real money. :sick:

    My guess would be there are a lot of folks who figure your cash for my clunker = good; my cash for your clunker = bad.

    I'm not particularly in the market for a car and none of mine would qualify anyway. Mostly I view this as a step up from just handing the automakers checks for nothing but not much of a step.
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • kdhspyderkdhspyder Posts: 7,160
    Your first three sentences are last month's news. Welcome to July.

    This voiced viewpoint is the typical negativism that's all too pervasive in certain portions of the populace. If the money runs out in August after only one month then the program will be a huge raging success, warranting an immediate extention of 3 to 6 to 9 months more. It will mean that the US buying public has jumped all over the program and it's working far better than expected.

    It could very well be that certain makers begin to moderate their incentives in order to make more money...wow, whatta concept!!! But from current indications as noted by british-rover none are doing anything of the sort now.

    Revisit this in Sept/Oct.
  • kdhspyderkdhspyder Posts: 7,160
    Correct, the bill doesn't simply give a check to the vehicle makers, it assists the whole lineup in transaction from raw materials to the cleanup crew on the dealer's lot to the states that collect sales taxes. The vehicle makers actually don't get anything 'extra' except 'extra' sales units - which is a key benefit.(**see below)

    It does however give every intermediary in the production, distribution and sale of vehicles a bump of 5-10%. This is the smartest part of the bill. Simply giving the vehicle makers $4 Billion additional would not have accomplished much. However having truckers, handlers, stampers, cleanup, steel suppliers, tire makers and everyone else involved in the process see a 5-10% bump in business is worthwhile for the economy and the nation.

    **The vehicle makers won't see any of this money directly unless the incentives immediately disappear. For example if a Malibu has $2000 Cash on the hood today but next month it has ZERO on the hood then GM does get an extra $2000 in revenue on those C4C sales. But the new GM also risks losing sales on the non-C4C sales if none of the other makers follow suit by eliminating the incentives on their midsizers.
  • hpmctorquehpmctorque Posts: 4,600
    "I'm not particularly in the market for a car and none of mine would qualify anyway."

    I'm in the same situation, but this isn't why I think C4C is a bad program.

    "I view this as a step up from just handing the automakers checks for nothing but not much of a step."

    Just because there could be a worse plan doesn't mean C4C is good. I think chapter 11 or 7 would have been resulted in fewer detrimental effects in the long run. I hope I'm wrong. Time will tell.
  • gagricegagrice Pahrump, NevadaPosts: 31,450
    If the bill extends to any new vehicle such as an alternative EV. I am looking at a Taylor Dunn Electric Vehicle for my around town errands. If they allow the C4C to be applied from my PU truck it may serve me better than the PU does. I would get the model with a box on the back I believe. There are a couple EV small utility vehicles running around town. The truck as pictured is about $19k.

    image
  • oldfarmer50oldfarmer50 Posts: 17,318
    "...dealers are being told by manufacturers that they will pull incentives..."

    I bought a new car at the end of June. Chrysler had $1-2K in dealer cash for my model.

    This month, no dealer cash. Maybe Edmunds hasn't posted it yet or maybe Chrysler is cutting back. Time will tell.

    2019 Kia Soul+, 2015 Mustang GT, 2004 Chevy Van, 2000 Chrysler Sebring convertible

  • oldfarmer50oldfarmer50 Posts: 17,318
    "...I'm looking at..."

    But how do you keep the fingerprints off the body when the little kid next door picks it up and makes it go Varoooom Varooom in the sandbox? :P

    2019 Kia Soul+, 2015 Mustang GT, 2004 Chevy Van, 2000 Chrysler Sebring convertible

  • gagricegagrice Pahrump, NevadaPosts: 31,450
    It is actually 164 inches long. About the size of an older S10 PU truck. It can haul 1500 lbs and has a 50 mile range at the 25 MPH governed speed. For about $2000 less I can get a loaded Ranger extended cab V6 automatic. The problem is it has not improved even 1 MPG in the last 10 years. So no C4C giveaway on what I need. I talked to the Electric vehicle dealer this afternoon and they have no plans to get involved with C4C.
  • hpmctorquehpmctorque Posts: 4,600
    Well, we won't worry about you getting speeding tickets with your Taylor Dunn...unless you swap the engine for a Tesla motor. That would roughly be the equivalent of shoehorning a Hemi into a Kia Rio.
  • ronhextallronhextall Posts: 37
    Have a 98 Nissan Frontier 4x4 that gets 17mpg combined so it qualifies. Can I 'clunk' it and get a Chevy Colorado 4x4?

    I read on cars.com a list of cars they said were the only ones you could get with a clunker. Is this list correct?

    I am confused I was thinking I could get almost anything and get the $3500.

    The cars.com list is mostly IMO crap cars.
  • isellhondasisellhondas Issaquah WashingtonPosts: 20,345
    Assuming your numbers are accurate, that dealer did a zero profit deal on a very popular car. This makes zero sense but I suppose they could have sold it for even less than that if they wanted to make a dumb business decision.

    Your program certainly won't work on every car or in every store and people need to know this. Car dealers don't invest 20 million dollars into a store to lose money.
  • gagricegagrice Pahrump, NevadaPosts: 31,450
    You are in the same pickle I am. A vehicle that qualifies as a Clunker and no comparable vehicle that has improved enough in mileage for us to buy. The folks that came up with the plan must have thought people with a PU truck now want an econobox. Maybe some do. If that is the case they probably did not need a PU to start with.
  • ronhextallronhextall Posts: 37
    No doubt I would trade in my clunker for a new truck because with the GM sale, my $3500 in old school GM card points, and the clunker I was looking at $11,000 to $12,000 off sticker.

    I don't want a colbalt so I guess I am a no go.

    Nice bill, couldn't be enough to help the car companies had to go all Al Gore with it. Well screw them, I will keep driving my Nissan 4x4 with 200,000+ miles on it.
  • mvs1mvs1 Posts: 462
    We have a 96' Pathfinder, would be glad to "clunk it". My wife and I are trying to figure out exactly what to buy. The $45K cap really limits what the wife wants, a Q5. Our other options were a VW Tiguan or CRV or RDX, but if we can't get a car seat and two humans in the rear, it's a no go. The Tiguan was fun during the test drive though.

    I'm mildly interested in an A4 with sport package, but up against the $45K, so I'd need to limit options, ditto on a BMW 3-series. Outside chance I buy a Mazda3 HB as a commuter vehicle....

    This ain't going to be easy :cry:
  • stephen987stephen987 Posts: 1,994
    If you can afford an A4, a 3-series, or a Q5, I'm not sure I want my tax dollars to subsidize your purchase. . . OTOH, if some of your tax dollars go to purchase a new Fit or Soul to replace my fifteen year old Ram pickup, that's just fine. :)

    Perhaps therein lies the root of so many concerns about this bill.

    As for me, I will probably take the plunge and trade both my clunker truck and my merely tired '99 Civic for a single vehicle--the aforementioned Fit or Soul, most likely. I would've done it anyway, probably next year, but C4C does help me decide when to pull the trigger.

    One catch, though: I may have been a day late renewing my tag last year--I don't remember, but it has happened a couple of times. How strictly do you think they'll interpret the phrase "continuously registered"? Seems to me the intent is to make sure the vehicles to be crushed were "in regular use," so maybe there will be an allowance for a lapse in registration no greater than, say, three days.
  • mvs1mvs1 Posts: 462
    If you can afford an A4, a 3-series, or a Q5, I'm not sure I want my tax dollars to subsidize your purchase. . .

    Ha! I don't think you have a choice.

    I'm not sure why there are so many comments pertaining to this bill and who is worthy to receive he $3500-4500. The way it's constituted, it doesn't favor those that want an upscale car....thus my comment that it may not work for my family. We lease vehicles but also keep purchased cars for many years. I sold my 1993 Honda Accord with 220K miles on it last year...next up is the +180K' Nissan.

    I actually really like the Fit and Soul, so go ahead and use my tax dollars, I deem you worthy ;) I had an 06' Civic (similar in my mind to the Fit) that I gave to my father-in-law, nice commuter car, but I felt like I drove a toaster.
  • cmpwilsoncmpwilson Posts: 1
    I've owned my car for 4 years and it has been registered in my name. In september of 2008 I didn't pay my registration fees on time. I paid them and the late fees in November. My insurance is will be one year continuous on August 14th. Will I qualify on August 14th or am I disqualified because my registration was paid late?
  • andre1969andre1969 Posts: 24,396
    Assuming your numbers are accurate, that dealer did a zero profit deal on a very popular car. This makes zero sense but I suppose they could have sold it for even less than that if they wanted to make a dumb business decision.

    A friend of mine got a 2009 Honda Civic a few months ago. I think it's an EX-L or something like that? It has a sunroof, automatic, leather interior, etc...probably everything but Nav. He said it was $20K, out the door. Taxes and other associated crap would probably account for around $1200 of that I'm guessing, so that would put him at around $18,800.

    Does that sound feasible, or is my friend probably blowing smoke? Sounds like a lot of car for the money, if that's what he paid for it.
  • txasgaltxasgal Posts: 3
    I don't see the Ford Excursion on the list but doesn't this qualify for over
    6,000 lbs? I hope so, I want to get the $3,500 because I am checking out the (Outback, Rogue, Escape) some kind of SUV/Xover to replace this gas guzzler. Does anyone have any idea if I can do this?
  • andre1969andre1969 Posts: 24,396
    The Ford Excursion should certainly qualify. Those things were based on 3/4 ton trucks, and had a GVWR of over 8500 lb, so the EPA never even tested them. They might fall under a different category from regular trucks...maybe "work truck" or "medium duty truck" or something like that?
  • gagricegagrice Pahrump, NevadaPosts: 31,450
    It is possible that it will only be qualified to purchase another work truck. The rules will have to be more clear on category 3 vehicles, before you can tell. The excursion has a GVWR of 8900 lbs.

    A category 3 truck is a work truck and is rated between 8,500 and 10,000 pounds gross vehicle weight. This category includes very large pickup trucks (those with cargo beds 72 inches or more in length) and very large cargo vans.

    In addition, work trucks may only be traded in for the purchase of a category 2 truck or another category 3 truck that is of similar size or smaller than the traded-in vehicle. Finally, the Act provides only for a $3,500 credit for trading in a work truck.


    My guess is you will need to trade it on a large SUV or 1/2 ton or larger PU truck or van. Is your Excursion really trashed? I cannot imagine not being able to sell it for $3500.
  • exb0exb0 Posts: 539
    Assuming your numbers are accurate, that dealer did a zero profit deal on a very popular car. This makes zero sense...

    It did make sense for that store. The vehicle I bought had been sitting on their lot for six months and it had only 7 miles on it. The demand is so low, no one even test driven it in six months. They had two other CR-Vs just like it. If they haven’t sold it to me at a loss, they would have been paying flooring on it for another six months, and still take a loss. Remember, market determines the value of a car. When demand is this low, they have to drop the price low enough to sell it. This wasn’t the only store that gave me a quote where they would be loosing money.

    Your program certainly won't work on every car or in every store and people need to know this.

    That is a true statement. That is why I advised the other poster to get as many quotes as he possibly can. Someone will be desperate enough to sell at a “loss”.
  • gagricegagrice Pahrump, NevadaPosts: 31,450
    Someone will be desperate enough to sell at a “loss”.

    That is a fair statement. When I decided to buy a 2007 Sequoia in October 2007 I got bids from near MSRP to $5000 under Invoice. Guess which one I bought. My limited 4X4 is tagged 09/06 on the door. That means the dealer had been sitting on a $51k vehicle for about a year. When I was willing to pay $41k that was better than having an 07 on the lot with the 2008 models coming in. Auto trader has 3 vehicles identical to mine listed at over $50k with more miles than mine has. I walk on any dealer that wants over invoice for a new vehicle.
  • nortsr1nortsr1 Posts: 1,060
    Is it possible thet Honda offers XXX amount of dollars if the dealership moves xxx amount of new vehicles in a certain time period and therefore they did make a profit??
    I'm only throwing this out there as I have read that many manufacturers have quota $$$$ if said quota is met?????
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