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Cash for Clunkers - Does it Work for You?

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Comments

  • joel0622joel0622 Member Posts: 3,299
    Your thinking is very skewed. If you have a $1000 sled that the Guv gives you $4500 for and you pay $1000 more then what you could have 2 months ago you still netted $2500 more then what your car was worth, plus the extra $3500 you didn't pay taxes on, plus the extra clunker rebate some manufactures have right now.

    As far as repo's spiking..................... At least here this is the strongest credit I have seen in along time, besides that 60% have paid cash, how do you repo a PIF car????

    Like I have said before. Quit hating on prosperity.
  • kdhspyderkdhspyder Member Posts: 7,160
    They've been here all along. Did you miss the documentary, MIB?
  • ecarbuyer123ecarbuyer123 Member Posts: 10
    Please file complaint with the North America Toyota HQ and your local BBB. We should not tolerate business dealing that rips people off.
  • british_roverbritish_rover Member Posts: 8,502
    PIF car?

    haha PIF car hadn't seen that acronym, probably a backronym actually, before very good.
  • kdhspyderkdhspyder Member Posts: 7,160
    This is true. Nothing is final until all the details are agreed upon, the product is delivered and most importantly the payment is collected. There are certain groups of buyers...in all products...for whom the negotiation is NEVER finished. Even after all the papers are signed there's always more to be negotiated and thrown in for free.

    Those in sales ... all products ... will recognize the groups. For those not in sales you can't believe how long this process takes. I had a $6 Million contract for steel for delivery to a foreign country that was finalized 5 times. Each time the buyers in that country found something new to negotiate and the contract was torn up and redone. It took 3 years.
  • fezofezo Member Posts: 10,386
    But can you get me $4,500 clunker money on my flying saucer?
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • dtownfbdtownfb Member Posts: 2,918
    bump. I didn't want this to get lost with all the posts.

    Calling all clunker experts!Would either of the two conditions result in disapproval of a clunker claim?

    1) The address on the registration(old address) does not match the insurance address (current address).
    2) The car has been continually registered and insured for the past year, but the inspection is expired.
  • british_roverbritish_rover Member Posts: 8,502
    ump. I didn't want this to get lost with all the posts.

    Calling all clunker experts!Would either of the two conditions result in disapproval of a clunker claim?

    1) The address on the registration(old address) does not match the insurance address (current address).
    2) The car has been continually registered and insured for the past year, but the inspection is expired.


    Inspection shouldn't matter as I don't remember seeing anything about inspection in the docs and not all states even have inspections.

    Not sure about number one though. Couldn't they just go to the DMV and change their address then get a new reg printed out with that address.
  • smilinjackrosssmilinjackross Member Posts: 37
    1) The address on the registration(old address) does not match the insurance address (current address).
    2) The car has been continually registered and insured for the past year, but the inspection is expired.


    I don't know about 1) but I suspect you're OK there. As for 2) my clunker had an expired inspection and was approved. I don't think the inspection status is mentioned anywhere is CARS rules.
  • dtownfbdtownfb Member Posts: 2,918
    Don't forget that President Bush tried this twice with sending early tax checks to all tax paying Americans. I think the checks were $400 or $600. Timing of these checks may have had something to do with it, but I don't think either stimulus package was very effective.

    It will be hard to stimulate other industries like the auto and housing industries.
  • joel0622joel0622 Member Posts: 3,299
    If you can find it on CARS.GOV we will trade for it. :D
  • british_roverbritish_rover Member Posts: 8,502
    Yes but that 400 to 600 dollars wasn't tied to anything. A person could just keep it and save it which while it might be a good decision for the person it does not help boost the economy.

    The 3,500 or 4,500 dollars are tied to having to spend at least double that much to buy a car.
  • christine118christine118 Member Posts: 22
    What's the deal? If my car is on their lot that I am buying, should I be able to take it before approval? I just read that statement on cars.gov where they have to give it. They do have my clunker on their lot and I wasn't able to get a loaner car either. Not sure what I should do.
  • sciontc2sciontc2 Member Posts: 5
    My aunt has a clunker but she just wants to sell it for like $700. Since i cant buy it from her and then trade it in would she be able to trade it in and then i can somehow take over payments on the car? I really want to take advantage of this program but i dont have a clunker to trade in. Any ideas?
  • fezofezo Member Posts: 10,386
    Short of having you handle the whole deal for her and then having her sell the car to you I don't see anything.

    Using that tactic you'd end up paying sales tax twice.
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • sciontc2sciontc2 Member Posts: 5
    so im just screwed then huh? Well that suck cuz i have been wanting a car forever and this would have been great.
  • fastsvofastsvo Member Posts: 36
    Why don't you and your Aunt buy the replacement car together? Two people can be on the bill of sale while you still pay for it. After wards, you can just transfer the title in your name (as a gifted car).
  • fastsvofastsvo Member Posts: 36
    Under the CFC, let's say I drive to a neighboring state and purchase a new vehicle from a dealership - would this apply? I would of course drive the clunker to the dealership and just leave it there and drive back home in my new car. :)
  • tonyhidtonyhid Member Posts: 10
    Don't know how you did it. Dealer says it's not on the list.
    They are suppose to call me this evening with what they can find out.
  • sciontc2sciontc2 Member Posts: 5
    I will run that by her. She probably wont go for it but i will try. Thanks for the help.
  • sciontc2sciontc2 Member Posts: 5
    Sorry one more question. The car would have to be paid off first before i could out it in my name? I dont know anything about this stuff.
  • gagricegagrice Member Posts: 31,450
    Your aunt would have to be on the loan if you buy it together. If the title is in either or you would be as much owner as your aunt after it is paid off. It kind of depends on which of you have the best credit on how to do the transaction. Make sure she has a clear title, current registration and continuous insurance before heading to the dealer of choice.
  • sciontc2sciontc2 Member Posts: 5
    oh ok i see. Thank you very much
  • gagricegagrice Member Posts: 31,450
    I hope your dealership is getting those customers their cars quickly as your contingency is illegal. I wonder how many dealers get fined for these violations.

    We’ve heard that dealers are asking consumers to sign agreements with contingencies when they participate in the CARS program.

    CONSUMERS ARE NOT REQUIRED TO SIGN CONTINGENCY AGREEMENTS TO PAY BACK THE DEALER SHOULD THE CARS CREDIT BE REJECTED.

    We’ve also heard that dealers are asking consumers to keep their “clunker” until the deal is approved by NHTSA.

    IF THE DEALER HAS THE NEW CAR IN STOCK, THE DEALER MUST ALLOW YOU TO TAKE POSSESSION OF THE NEW CAR BEFORE THE DEALER MAY SUBMIT THE CREDIT APPLICATION TO THE GOVERNMENT. PLEASE REPORT ANY DEALER TO NHTSA THAT DOES NOT ALLOW YOU TO TAKE POSSESSION OF A NEW CAR PURCHASED UNDER THE CARS PROGRAM. PLEASE CALL THE CARS HOTLINE AT (866) CAR-7861.


    http://www.cars.gov/
  • dkvndkvn Member Posts: 14
    The dealer told me if I want to drive the car, write a check $4500, then take the car as many people do

    My clunker is still drivable so I don't care to wait for couple weeks. Also I gave the M.S. transcript to the dealer to apply for College Graduate Rebate and don't know if it works or not. The dealer said they faxed it to Toyota Financial Services but haven't heard about it yet. So I have to wait anyway.

    The CARS likely pushed up the price. I got the Corolla LE with option cruise control, keyless entry and CK (all weather protection) for $17070 + $400 dealer fee (the MRSP is 18000 and invoice 16750) but consider $4500 for my $200 value clunker, 6% sale tax will refund and if I can get $1000 College graduate rebate, it is still good
  • mitchfloridamitchflorida Member Posts: 420
    The Federal Government is also breaking the law by not reimbursing dealers within the required 10 days. If Obama can't run Cash for Clunkers properly, do we really want him in charge of providing health care for your 84 year old grandmother??
  • dkvndkvn Member Posts: 14
    Yes, I saw that but MOST the dealer here in Connecticut don't allow clunkers buyer take the new car. I didn't call the hotline but I am sure someone else will report it.
    Even though I am waiting for the car, but I still think that dealers are doing the right thing.
  • gagricegagrice Member Posts: 31,450
    I was just pointing out the fallacy in our resident sales person's dealings with CARS. He is the one claiming it is the best thing since sliced bread. He also claims they are getting their money right on the 10 day mark. So I am not sure why they would jack the customer around with illegal contingency documents.

    I pointed out that the dealers would be real fortunate to get paid on time. I have doctor friends that hate dealing with Medicare because you have to submit 3-4 times before getting paid. I don't want Obama deciding if I need medical care at all.
  • gagricegagrice Member Posts: 31,450
    How about the person trading in their daily driver? They have to wait and who pays for a rental car? I can understand the dealer not wanting a new car back that has been driven for a couple weeks. Those are the rules they signed on to play by.
  • dtownfbdtownfb Member Posts: 2,918
    I know and agree. In fact the second check coincided with $4 a gallon gas. Helped me get through the summer.

    I listen to folks like Bob Brinker (I think that is hisname) on the radio who complains about the current adminstrations's policy and these stimulus packages. but was praising those instittuted by President Bush. He felt that peopel would take the $400 and $600 and spend it or at the very least pay off bills. Of course that didn't happen. Most people used it for higher energy costs or saved it.

    Although not a fan of this program when it started, it's hard to deny the positive impact it is having. With all the outrage over health care, no one is paying attention to the positive news about the economy. Of course, no one will feel safe until unemployment starts to decline.
  • dkvndkvn Member Posts: 14
    Dealer doesn't take the junk yet
    I am still driving my old junk
  • mnappi0606mnappi0606 Member Posts: 14
    Yes, they HAVE to give you your new car. Call them and if they won't do it, call the hotline ASAP. Make sure you tell them you plan on doing that too.
  • tonyhidtonyhid Member Posts: 10
    What do ya know! Dealer never called me as promised. Not surprized...
  • dkvndkvn Member Posts: 14
    How about if I finance the car . Is it possible they delay to approve the car loan?
  • tonyhidtonyhid Member Posts: 10
    Must the the "Curb Weight Excuse". Have a 99 Chev Suburban 4WD. Should be a catagory 1, but it is not on the list. They are saying it might be a catagory 3. NOT!
  • maojrmaojr Member Posts: 1
    Just came back from a local Toyota Dealership....... Wanted to get a Prius and use the Cash For Clunkers Program.

    From what we were told at the dealership - we became very disappointed with the results and caviats thrown upon us by this dealership:

    The program is only for certain model Prius, ie: You could not use the program for purchasing a Demo car. - Well this could have save us some money too.

    The car price is not negotiable - So, then we would have to basically pay full price for the car or even more. Why am I getting penalized by this dealership because I am using this government program..

    You cannot order a car - So, if I wanted a particular car but they did not have it on their lot and was willing to wait for it as well as pay for the car, they would penalize me by not selling me that car.

    This is very discouraging to me. I see another rip-off to many Americans again by establishment undermining the consumers and taking advantage of how the government operates......is there no end to the consumer getting taken for as much money a possible, again........This is just the tip of the iceberg of what will be applied to the customer/consumers..........

    ....on one end we have an incentive to buy, on the other-had I am getting penalize for wanting to participate to improve our economy.......
  • greanpea68greanpea68 Member Posts: 1,996
    I asked to have them sent by mail and they insist that it must be done in person. It doesn't seem logical in todays day and age when you can close a mortgage by mail. I tried calling CARS but I waited for a long time and is still busy. Anyone know?

    I am sure Joel already answered this but this CARS program is time sensitive....

    I know you think it is a pain but you have no idea how much pain it is for the dealership....
  • greanpea68greanpea68 Member Posts: 1,996
    My car's registration expires on Aug 19th. If the deal is not approved by then, will it be rejected b/c it is not "continuously registered"?

    No everything is based on the date when you signed the contract.... hang in there it should be approved soon. :shades:
  • mikemartinmikemartin Member Posts: 205
    CFC is a dealership taxpayer transfer payment program.

    Whether you've bought a car or not, taken advantage of this boondoggle or not, you can rest assured that your taxes are being used to ensure dealers can ask MSRP for their cars, sell a boatload of cars to people thinking they're getting a good deal, when in fact, they'd had been better of buying 3 months ago with no trade in (they could've sold that for gravy, 3 months ago).

    This program should be called TFD (Taxdollars For Dealerships). New car dealerships LOVE it.
  • stephen987stephen987 Member Posts: 1,994
    The program is only for certain model Prius, ie: You could not use the program for purchasing a Demo car. - Well this could have save us some money too.



    Correction: the program is only for NEW cars. Any car that's been titled before, such as a service loaner that was registered in the name of the dealership, is a USED car.

    This is not the dealership's fault. And if you were expecting to be able to buy one of the hottest vehicles on the market for much below list price, you need to go back to Econ 101.
  • driver33driver33 Member Posts: 6
    Your 84 year old grandmother is already on the public dole for healthcare in a government run health care program...Medicare. That's been around 45 years.
    Spew your Limbaugh/Palin crap elsewhere.
  • jeffyscottjeffyscott Member Posts: 3,855
    CFC is a dealership taxpayer transfer payment program.

    As a non-participant, why should I care if part of the end result is higher commissions for car sales people and higher profits for car dealers. What difference does it make whether the handout is divided as $1000 extra to the dealer and sales person and $3000 to the buyer vs. $4000 to the buyer and nothing to the others?

    In fact, as a non-participant, I probably should want more to go the the dealership and it's employees as that just make them marginally more willing to give me a better deal 6 months from now.
  • smilinjackrosssmilinjackross Member Posts: 37
    The 1995 Chevy Suburban 2WD has been added to the list. At least this means they're looking at the list and updating it occasionally.

    They still haven't added the '98 and '99 Suburban 4WD. The email I received from fueleconomy told me that the curb weight is greater than 6000 pounds so the truck is classified as "heavy-duty". I told them that

    1) I can't find any documentation listing the curb weight as > 6,000 lbs. I've seen 5297 and 5266, but nothing close to 6,000.
    2) I can't find anything in the CARS regulation that says anything about curb weight at all. It refers to GVWR > 8500 lbs. and the '98 and '99 Suburban is listed as 7300 lbs. GVWR.

    They said they expect a decision soon.

    I expect to win the lottery.
  • smilinjackrosssmilinjackross Member Posts: 37
    In fact, as a non-participant, I probably should want more to go the the dealership and it's employees as that just make them marginally more willing to give me a better deal 6 months from now.

    Sure, they'll give you a better deal because they are making so much off of CARS. Dealers are generous that way. If they are making a lot they like to share the wealth.
  • joel0622joel0622 Member Posts: 3,299
    If you and your Aunt both have good credit then it is possible.

    You first go to your bank and get pre-approved for an auto loan. Once you have secured that your Aunt goes and buys the car of your choice. Once the transaction is complete you buy the car from your aunt. The bank you set up financing with will send a check for the payoff on the loan your aunt set up.

    Also check to see if your state allows relatives to "gift" a car to each other. Here in TN one relative can gift a car to another relative and they do not pay sales tax on the transaction. If your state is like that you would not have to pay sales tax twice.

    When you go to the dealer don't get into the fact of what your doing. You are soley a third basemen there to negotiate the deal for your aunt. The reason being is that technically it could be considered a straw purchase, but it really isn't.

    The best way would be for you and your aunt to both set up loans at the same bank, that way when you go to the dealer it is just a cash deal and you would not have to get into all the specifics.
  • rgould22rgould22 Member Posts: 21
    I got rid of a '89 ford 250HD with 181k miles. I got $3500 CFC for it. I bought a GMC Sierra hybrid. I now consider myself a ginni pig the the PU hybrid. With the milage increase I really should have gotten $4500 for it but I guess since in '89 there were no mileage test for the mid duty trucks the government is just saying $3500. But $3500 for a rolling piece of scrap metal is still a good deal.
  • fushigifushigi Member Posts: 1,459
    Once the transaction is complete you buy the car from your aunt.

    There is a potential problem with this. If you bought a car that does not come with a fully transferable warranty, you may be immediately giving up the portion that doesn't transfer as you would be buying a used car.

    IMO, sciontc2, if the aunt's car is worth $700, offer her $1000 or $1200 to co-sign with you on the loan and agree, in writing, to use the clunker as a trade and to sign over the title to you once the loan is paid off. You, in turn, agree in writing to be responsible for the loan repayment and all insurance/upkeep. The loan payment part is more of a "gentleman's agreement" as legally both are responsible for the loan, but it points out your willingness to shoulder the entire burden and could be worded such that you agree to repay her should she have to make any loan payments.

    Basically, she assumes some risk (that you'll fail to repay the loan) but is immediately compensated $300-500 over and above the clinker's value for her effort. And the "in writing" part becomes a contract between the two of you.
    2017 Infiniti QX60 (me), 2012 Hyundai Elantra (wife)
  • kdhspyderkdhspyder Member Posts: 7,160
    It appears that there are a several issues involved here and one is purely logistical. Also I see this as a consumer cutting off his nose to spite his face.

    First, you have to understand and accept that this program was created by the auto industry, written for the auto industry and intended to benefit the auto industry. That's its primary purpose. However buyers also get a significant benefit.

    You'd like to buy a Prius and use the $4500 presumably to reduce the price. If it's a Prius III at $23900 MSRP then you'd be paying $19,400 before taxes, etc. If the C4C program did not exist, then this month the ultra hot Prius would likely be selling for ..... $23900 +TTF. Full sticker..maybe a nominal discount. Why are you upset about getting a $4500 discount?

    Demo deals? That's a local issue, but there simply may not be any available. The new G3's have only been here for 3 months after all. Typically demo's become available after about 6 months. Also in my experience Prius' are almost never demo cars. They sell too fast. Putting one in demo service means that that vehicle is a lost sale.

    You can order a Prius....but you can't order one and guarantee that it will arrive before the C4C program ends. The dealer and Toyota have no control over how fast the funding is used up. They can't reserve your $4500 in the DOT's computer. The entire C4C transaction has to be done on the spot with all the documents and all the actual vehicles ( VINs) in hand. This is simply a logistical issue which you can't get around.

    So again why penalize yourself by not taking the $4500 ASAP?
  • joel0622joel0622 Member Posts: 3,299
    I may be wrong but the only manufactures I know of who's warranty do not fully transfer are Hyundai and Chrysler.

    Though still a good idea your scenario leaves room for fushigi's aunt to have one to many drinks at a family reunion, get mad at fushigi because he did not come weed her petunias last Sunday and start threatening to take back "her" car.

    Belive me I have seen it happen. (not in my family)
  • fushigifushigi Member Posts: 1,459
    Mitsu's warranty also drops from 10/100 to 5/60.

    Regarding the inebriated aunt scenario, I can see that happening as well although I would hope that calmer/sober thinking would prevail in the long run.

    If the potential for a disgruntled aunt is there, perhaps the best deal is simply no deal at all. Don't bother with C4C this time around. If the OP can wait a few months for C4C to end and prices to go back to where they were a few months ago, a deal close to what C4C would have brought can probably be achieved. And if he started making payments to a savings account now, that would provide for a larger down payment when the time came to buy.
    2017 Infiniti QX60 (me), 2012 Hyundai Elantra (wife)
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