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Cash for Clunkers - Does it Work for You?

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Comments

  • philliplcphilliplc Posts: 136
    Will be taking advantage of the program to turn a high mileage 02 Sedona LX into an economy car.

    In june Honda had $1000 dealer cash + 2.9%/36 on the Civic, so far I don't see anything at all advertised for July. I can't imagine they would pull incentives given what their competition is doing, but if by chance they are I will buy a Corolla.
  • isellhondasisellhondas Issaquah WashingtonPosts: 20,345
    Honda has had some stair step programs but never on a CRV.
  • txasgaltxasgal Posts: 3
    No the Excursion is in good condition but it isn't a diesel and it has nearly 108K miles. A Honda dealer came back and said the black book trade would be $1500 which is what we thought. That is really a bummer if we have to trade it in for another big truck/van. We will just keep it, it has been a very good vehicle for road trips.
  • andre1969andre1969 Posts: 24,364
    Which engine does it have? IIRC, they came standard with a 5.4 V-8 which was a bit underpowered in something this big. Then there was the PowerStroke Diesel. Wasn't there some V-10 option as well?

    Is there a CarMax near you? I've heard some people say they had good luck selling cars to them.
  • explorerx4explorerx4 Central CTPosts: 15,378
    the program is going to go on for a few years, i think, so don't have to worry about missing out.
    2020 Ford Explorer XLT, 2019 Lincoln MKZ Reserve 1
  • explorerx4explorerx4 Central CTPosts: 15,378
    i rented a 15 passenger ford van and had 15 people in it.
    at no point did it feel under powered.
    OP txasgal can respond better to that, i'm thinking.
    2020 Ford Explorer XLT, 2019 Lincoln MKZ Reserve 1
  • txasgaltxasgal Posts: 3
    The engine is 5.4 liter/V8 and yes, we do have a Carmax nearby.
    Thanks for suggesting it.
  • volvomaxvolvomax Posts: 5,238
    the program is going to go on for a few years, i think, so don't have to worry about missing out.

    :confuse: What makes you say that? IIRC, it's only funded through the end of the year. I doubt that it will be renewed.
  • cptpltcptplt Posts: 1,075
    its funded presently for one billion $ this year, when that runs out, unless congress come up with more money the program is over. assuming average 4K per vehicle (its 3500 or 4500 depending on how much more mileage you get on ythe new car) that means only about a quarter million vehicles before cash has run out.
  • ronhextallronhextall Posts: 37
    I have a 98 Nissan Frontier 4x4 which qualifies, would like to get a Colorado Crew Cab 4x4. Using the GM website for clunkers I can't, I can get a 4x2 Crew Cab but not the 4x4. What do you think the chances are of the dealer playing a shell game with me so I can get the car I want. Couldn't I buy an Aveo on paper and trade it in without leaving my chair in the dealership's office and make it work? Maybe if the dealership was going to take a new car and use it for dealership purposes (which would make it 'used' anyway) they would let me to an instant buy and trade to get what I want.

    I need it to be GM because they have that sale going on and I have $3500 in old school GM Credit Card points. If they can do this I would be looking at a combined discount of $11,000.
  • It is interesing the comments that imply those of us who drive cars that classify as clunkers are min wage low credit. I have a credit score 5 pts below the maximum, make 95k, and drive a 1998 Ford Explorer. Why? my father in law retired and gave it to me for free a little over a year ago. It breaks down every six months and needs new brakes, etc-I got a trade in estimate of $1200 dollars so $4500 looks a lot better. Looking at a 2009 or 2010 Subaru Legacy, 2009 or 2010 Toyota Prius, or 2010 Honda Insight. The 09 models are both discounted and have low APR incentives while the 10 models are selling near MSRP as they just came out so probably will go with the 09 models. We keep our cars 12-15 years before buying a new one.
  • dtownfbdtownfb Posts: 2,918
    The fines are too steep ($15,000) for any dealer to play a "shell game" with this program. Why not just buy the Colorado and sell your Nissan privately? Or simply trade it in and see how much the dealer will give you for Frontier?
  • fezofezo Manahawkin, NJPosts: 10,379
    We keep our cars 12-15 years before buying a new one.

    Which, of course, is why your credit score is that high!

    I don't keep them that long but I've learned to hold on to a working car.
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • ronhextallronhextall Posts: 37
    I don't see why what I am suggesting is in any way illegal. How long do I have to own a car I get via cash for clunkers before I can trade it in?

    My frontier has lots of hail damage and cosmetic issues, no way in hell would I get anywhere near $3500 to $4500 in a trade. The only thing it has going for it is mechanically it is a rock, 200,000+ miles and little more then tires and brakes has been done to it. I have done none of the scheduled maintenance, best vehicle I have ever had. I was just thinking this might be too good of a deal to pass up.
  • stephen987stephen987 Posts: 1,994
    I have done none of the scheduled maintenance,

    200,000 miles without an oil change?!? Then why not get another Frontier?
  • isellhondasisellhondas Issaquah WashingtonPosts: 20,345
    I was thinking the same thing!

    My guess woujld be that he probably does change the oil once in awhile but he skips the other things like brake fluid and coolant changes, transmission services etc.

    Sometimes you can get away with this. I know I wouldn't want to buy that Frontier.
  • explorerx4explorerx4 Central CTPosts: 15,378
    i thought i read that 1 billion was funded for this year, but 4 billion overall.
    could be recalling incorrectly, yhough.
    2020 Ford Explorer XLT, 2019 Lincoln MKZ Reserve 1
  • gagricegagrice Pahrump, NevadaPosts: 31,450
    The house wanted $4 billion and the Senate whittled it down to $1 billion. I think it is unlikely they will open it back up. Unless it were to create a miracle in the auto industry. How likely is that with the credit crunch?
  • ronhextallronhextall Posts: 37
    Sorry, outside of changing the oil I have done nothing. I change the oil every 5,000 miles.
  • isellhondasisellhondas Issaquah WashingtonPosts: 20,345
    Try abusing a European car like that and your results would be MUCH different! :sick:

    Sometimes you can get away with that, sometimes not.
  • joel0622joel0622 Posts: 3,299
    The Honda dealer is trying to screw your brains out. Rough book on a base model 2003 4X2 XLT with no options at all is $5000. I have no idea what you have or the year model, I just used the oldest year model they were made for an example.
  • hwyhobohwyhobo Posts: 265
    Having read the list of qualified cars, I can see that while my passenger car may be a clunker, it has a serious strike against it - I didn't buy one with irresponsibly high fuel usage. I guess that will teach me for the future. Time to subsidize incentives for those who didn't exercise such restraint.
  • tidestertidester Posts: 10,059
    You could take a chance. Go out and buy a new guzzler tomorrow and wait for another "incentive" down the road. :P

    tidester, host
    SUVs and Smart Shopper
  • british_roverbritish_rover Posts: 8,457
    So a 1991 camry wagon with a V6 is an irresponsibly high fuel usage vehicle?

    It gets 18 mpg combined on the new ratings it qualifies.

    It doesn't take much to hit that 18 mark for a sedan with the new EPA fuel economy test.

    Go check on the fuel economy.gov site lots of mid sized sedans from the late 80s early 90s that are worthless get 18 or less mpg combined using the new ratings. The new ratings hit most cars with a 10-20 percent cut in fuel mileage. Hybrids and diesels got shafted more but diesels got it the worst.

    You know what is funny is that my old H-Body Pontiac Bonneville gets a 19 combined rating so it doesn't qualify but the same year camry with a six cylinder gets a 18 so it does. I guess my old GM car is a fuel efficient marvel as far as you are concerned.
  • hwyhobohwyhobo Posts: 265
    I guess my old GM car is a fuel efficient marvel as far as you are concerned

    As far as *I* am concerned? Saying that something stinks below 18 doesn't mean it smells like a rose at 19.

    Maybe as far as government is concerned 19 is great. I don't think anything below an average of 29-30 is that good, and it is hard to find something like that today.

    It doesn't take much to hit that 18 mark for a sedan with the new EPA fuel economy test.

    And it amazes me. Then again, I would love a full-size wagon with a small diesel engine, so clearly by today's market standards, I am a member of a lunatic fringe.
  • british_roverbritish_rover Posts: 8,457
    The old style EPA test for my Pontiac was around 21 combined and I usually averaged around 25 mpg or so. It did get great highway mileage and after some modifications I could hit 40 mpg for long trips with the right weather conditions. Low 30s mpg was more normal for highway driving.

    I would love a small diesel engine in a hatchback or wagon too but the closest thing to that right now is the Jetta TDI Sportwagon. The TDI gets 34 combined on the EPA test but probably gets closer to 40 mpg real world as the EPA test punishes diesels by about 18%.

    I doubt there is anything out on the market today that gets over 30 combined that unless it is a hybrid or a small diesel like the TDI. For my part of the country a hybrid really wouldn't work as the cold weather and snow would make it useless for four or five months out of the year. Batteries don't work so well when it is below freezing for months at a time.

    The XFE cobalt does get 30 combined on the EPA test so a real world driver can probably get that up to 32-33.

    Remember the new EPA test is pretty dumbed down because people complained that they could never get the mileage of the old EPA test. If you knew how to drive you could do 10% better then the old 2007 and under test. Too bad most people don't know how to drive. The Forrester that I normally drive as a demo is rated 21 combined for the new test and was rated 24 combined for the old test. I usually get between 24 and 25 overall even though the car has over 160,000 miles and is getting very tired.

    Getting back to the TDI in this long rambling post I could chunk my old Jeep for a TDI and get the $4,500 bucks. Plus pay no sales tax in my state. Plus get a $1,300 tax credit. It is something I have to consider. I just hate giving up the versatility and all weather capability of the jeep. Nothing stops that thing and it has been dead reliable even with over 150,000 miles.
  • joel0622joel0622 Posts: 3,299
    Just go here and hit the green leaf. Put you current clunker info in and it will tell you if it qualifies.

    ford.com
  • fezofezo Manahawkin, NJPosts: 10,379
    Then again, I would love a full-size wagon with a small diesel engine, so clearly by today's market standards, I am a member of a lunatic fringe.

    Well, you said it, not me....

    Actually there are a bunch of us on that fringe. A full size diesel wagon would be perfect for me.

    BR - 150K utterly reliable Jeeps are hard to come by. I could see holding on to it.
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • We are planning to purchase a mazda 5 touring as soon as the cash for clunkers takes effect on July 24th. Our 98 Ford Windstar (3.8 L engine) qualifies us for the full $4500 (and is in the kind of shape that we'd be lucky to get $450 for her otherwise, plus she's on her 3rd transmission... ugh). We plan to put $6000 down on the 5, finance the remainder (after $4500 and $6000, obviously). We are asking for a Touring, white, DVD installed w/ 4 sets headphones, roof rack, roof cargo thingy (?), and 2" hitch. I am researching now and learned here that the TMV for a white touring with dvd installed is $20,514. I'm not sure how much having those other additions should cost. We are also looking at getting our own financing (I plan to pursue the PenFed credit union as mentioned here). I'd love any other advice before we begin negotiating final prices. We have a dealer we'd most like to go with but there are several others we'll call to see who might be willing to deal.
    Thanks for any advice
  • cyclone83cyclone83 Posts: 60
    Yep...cash for clunkers ($3500) and using a penfed loan. We've been waiting several months for this, so we're getting kinda anxious! I'd just say shop around for prices a bit, we've received quotes for a Grand Touring ranging from $19500 to $21000.
  • spazvtspazvt Posts: 5
    Has anyone successfully negotiated a scrap value for their car under Cash for Clunkers?

    In the legislation and current NHTSA statement on cars.gov, both state that 1) dealers are required to provide a 'best estimate' of the scrappage value of the car, and 2) dealers are authorized to retain $50 of the amount paid for scrappage as payment for the administrative costs of the program. The NHTSA statement has a footnote that "Allocation of any remaining scrappage fees is subject to negotiation between the dealer and the purchaser."

    I've called a few scrapyards and they've quoted $100 for the whole car, and a relative said that the going rate for metal is $5/100 lbs, which also works out to about $100 for a 1 ton car. But under the legislation the dealer and/or junkyard are allowed to sell parts off it as well, just as long as the engine is scrapped and the drive train pieces are not sold together. I got rear-ended a year ago and got a quote for repairs from the bodyshop listing the back liftgate as a $312 part and a few years back got quotes for a door costing $250. I know there are junkyards working as middle-men storing the vehicle and waiting for a need for parts, and they certainly deserve most of the difference in value for parts, but the dealership must be getting more than $100 for the car if I give it to them for free.

    So I was finalizing a deal for a car and finally got the dealership to give me an estimate of the scrap value of the car and they quoted black-book value at $450. So I offered to split the difference between black book and the mandatory $50, so I get $200 and they get the car and the rest of the benefit of selling off parts or selling the whole vehicle to a junkyard for parts. They refused to negotiate on it at all. Several times I've had to convince them that I wasn't arguing to get a "trade in" value in addition to the gov't rebate, but even after we got that clear they won't negotiate on the scrap value. I know it's a somewhat small component of the overall sale, but I feel that it's important to negotiate a fair value for each component of the deal.

    Otherwise, to answer the general premise of this discussion and throw in my two cents, C.A.R.S. works for me because I have a 93 Jeep Cherokee (EPA MPG=15) worth around $1k. I was planning to buy a used 3-5 year old car for $10k-$15k next year. But with the $4.5k rebate when I move to a more fuel efficient sedan, I'm looking at buying this year and a new car instead. Based on quotes for Nissan Altima 2.5S cars, I can get one for ~$14k out the door, so I still end up paying about as much as I would have for the new car. In agreement with post#169, those of us who have clunkers are not minimum wage people. I've had my car since 2002 and enjoyed having no monthly payments on the car for the last four years. Just as an Engineer, I value functionality and saving money and my wife is harassing me to buy a more 'professional' looking car.

    It's true, the environmental aspects of the bill were watered down and it's a shame to junk my car while it's in fine working condition, but at lease the US bill requires MPG increase and allows any car purchase, whereas European bills are just for domestic cars with no MPG requirements.
  • andre1969andre1969 Posts: 24,364
    You know what is funny is that my old H-Body Pontiac Bonneville gets a 19 combined rating so it doesn't qualify but the same year camry with a six cylinder gets a 18 so it does. I guess my old GM car is a fuel efficient marvel as far as you are concerned.

    Wow, you still have that old beast? From what I've heard, those things actually are pretty fuel-efficient, if not the most sophisticated in other respects. Lemko had an '88 Park Ave that could get 29-30 mpg on the highway, I think. Didn't you mention that you've been able to crack 40 with your Bonneville, if you nurse it just right?

    Those early Japanese V-6 cars tended to not be very fuel efficient, in general. I think it's because they tended to be more powerful, premium, driver's-type vehicles, with fairly high horsepower and agressive gearing. The 1985 Maxima, for example, is only rated at 15/20 with the automatic, although it's 17/23 with the stick (17/22 if you bought it in Cali). IIRC, the original Camry V-6 was a small 2.5L unit, so it was probably more of a revver as well, and coupled with aggressive gearing.

    I don't think Japanese V-6es really started getting economical until the later 1990's, when they reached larger displacements, and were better-suited to loafing along like an old pushrod...although they were ready to rev up when you required it.
  • My '94 minivan's battery died 2 months ago, and then C4C came up, and now that old junker is worth $4500!
    I jumped it yesterday, and rev'd it for a few minutes, but then it kept dying when I took my foot off the gas. I'd hate to have to pour money in it to cash it in.
    It is registered, insured, but out of inspection (PA). Do I need to be able to drive it to the dealer, and have them be able to drive it around the lot 'til the scrapper picks it up?
  • gagricegagrice Pahrump, NevadaPosts: 31,450
    So I offered to split the difference between black book and the mandatory $50, so I get $200 and they get the car and the rest of the benefit of selling off parts or selling the whole vehicle to a junkyard for parts. They refused to negotiate on it at all.

    I'm with you on this all the way. I would go ahead and make the deal without your due on the scrap. Then file a complaint with the NHTSA when they make the final rules available. I would hope they make that portion clear in the final draft. A vehicle with a decent body is worth a lot more in parts than a rusted out hulk with a good engine.
  • isellhondasisellhondas Issaquah WashingtonPosts: 20,345
    You have to be able to drive your car to the dealer.

    I guess if it doesn't start the next day it's not your problem.
  • isellhondasisellhondas Issaquah WashingtonPosts: 20,345
    I wouldn't plan on any scrap value. As I see it, the junk yards are going to have the upper hand here. They will probably dictate the rules.
  • gagricegagrice Pahrump, NevadaPosts: 31,450
    That may very well be. If there is only one Salvage yard in town you take what he offers for the junker. The fact that the engine is scrap metal only will have some bearing also. I don't see the dealers getting involved in scrapping out parts. Unless their body shop sees a fender or door that they can use. I know most of the time you pay for someone to come and haul the car off your property. Not sure why they even put that little caveat into the bill. Typical legalese to satisfy all the lawyers in the Congress.

    PS
    And give Edmund's posters something to debate. :blush:
  • british_roverbritish_rover Posts: 8,457
    Nah I sold it when I moved up to CT. A guy I worked with had a friend that needed a car bad after his 88 Buick Part Ave died. I sold him my Pontiac for 500 bucks cause I really couldn't take it up to CT anyway.

    I had managed to get it up to 40 mpg on a couple of occasions with the right weather conditions and road conditions.

    I normally averaged 30-35 on the highway and mid 20s around town.

    My Bonne had mods though. Made a front undertray/bellypan had a custom cold air intake and was also full of synthetic fluids all the way around. The tires had a a super high tread rating too so they were fairly low roll resistance and I kept them at 41 PSI too.

    I had suspension mods too but I doubt they helped the mileage any. They just kept it from handling like a boat in a turn.
  • ldislerldisler Posts: 83
    Yes, Have a 99 Mercury Villager that I was offered $1000 on trade for, It needs front
    struts but otherwise is in good shape ( dealers try to steal trades). I'll get the $4500
    w/ clunkers. I've gotten a quote of $18500 for a Touring with no options, just waiting till clunkers kicks in.
  • greanpea68greanpea68 Posts: 1,996
    VAST majority of people with these cars either a) were financially unable to buy a new car

    I keep saying the same thing to people !!!! Here is why I say that. If they could have afford it they would have done it when Gas Prices were $4.00 per gallon.

    GP
  • I figured others must be taking advantage of this. We were approved with penfed so now we're just negotiating price with the dealer for a touring with the options we're asking for, interested to see where we end up with that. Edmunds TMV is really helpful info. I'm VER Y excited for July 24th to get here! Hope the gov't doesn't push it back again...
  • ldislerldisler Posts: 83
    cyclone'
    What are you trading? I believe the 5 qualifies for $4500 no matter what you trade because it's a catagory 1 truck. As long as your trade meets the Gov qualifications.
  • stickguystickguy Posts: 40,774
    My sister is looking for a new car, and would be happy to use this.

    But, her relic (1995 Maxima, probably up to about 180K now, and needing brakes and suspension, no AC anymoe I don't think), likely rated too high in MPG to qualify.

    Now, her situation? THis is my nephews car. He is going to inherit her current car, and she will be buying the new one, but both are now in her name. SO dumping this for $3,500 on a dealer would have been a fantastic windfall, since she ain't getting close to that on the street.

    2020 Acura RDX tech SH-AWD

  • stephen987stephen987 Posts: 1,994
    Yes, the '95 Maxima has an EPA combined mpg of 21, so she's not going to be able to take advantage.
  • kdhspyderkdhspyder Posts: 7,160
    I wouldn't plan on any scrap value. As I see it, the junk yards are going to have the upper hand here. They will probably dictate the rules.

    Yes I think that it will be the scrap yards that make out best here. They will be given vehicles ( free of charge except for towing ) that they can then take apart and retail out at junkyard prices at some time down the road, then they have to spend the time and expense to destroy the engine and body but then they can resell the bundled auto scrap to the markets all over the world at the going market prices.

    A capable owner should strip off everything that's of any value before dropping it off.
  • cyclone83cyclone83 Posts: 60
    We are trading in a 96 Pontiac Bonneville that is rated at 18 mpg. I haven't looked very closely, the Mazda5 is category 1 truck???
  • british_roverbritish_rover Posts: 8,457
    Most likely yes most Minivans are rated as Cat 1 trucks and as a truck it does get six mpg better then your Old Bonne, sorry to see that go by the way I always liked them, so you should qualify for the 4,500 bucks.
  • cyclone83cyclone83 Posts: 60
    That is awesome news, thanks. I am sad to see the Bonne go as well, it is the 3rd (and last) Bonne that I will have driven. Excited for our first new car though.
  • ldislerldisler Posts: 83
    Automatic 5's are five MPG and stick shifts are six better, but still $4500 CFC.
  • hpmctorquehpmctorque Posts: 4,600
    How many miles on your Bonneville?
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