CARS Warning for Dodge Dealers - No Category 1 Trucks to sell

[XDCX]

The purpose of this thread is to provide a warning to Dodge dealers and prevent them from making a mistake that might cost them a $3500 or $4500 chargeback.

The issue is that many old Ram 100/150s and Dakotas which qualify as "clunkers" cannot be used to purchase a new Ram 1500 or Dakota. The reason is the older vehicles are often classified as Category 1 trucks where the 2009 Dodge trucks are classified as Category 2 trucks.

The CARS program does not allow a Category 1 truck to be used as a trade for a Category 2 truck.

The following example illustrates the point:

In this case, the 1990 Dodge W-150 cannot be used as a trade for a 2009 Dakota because the Ram W-150 is classified as a Category 1 vehicle.

Sadly, a Dodge does not offer a pick-up that meets the Category 1 criteria.

The link for the CARS Vehicle Eligibility website can be found here - click here

[XDCX]

As a point of clarification, the reason for the difference in vehicle classifications between the old trucks and the new trucks is based on wheelbase.

NHTSA classifies the entire vehicle class based on the shortest wheelbase available during a given model year. In the case of the old Rams and Dakotas, the fact they were offered as Regular Cab trucks with a short bed makes them Category 1 vehicles.

Since Dodge no longer offers the Dakota as a Regular Cab the vehicles are classified as Category 2.

Bottom-line: Verify vehicle eligibility before you finalize your deal.

[CarguyCO]

Found that out myself today....offered them a trade in value of the same CARS would have given them, less the sales tax incentive as it is not a rebate...they folded at msrp less rebates....

I still chalk that up in my head as a CARS program sale...

[XDCX]

Originally Posted by CarguyCO

Found that out myself today....offered them a trade in value of the same CARS would have given them, less the sales tax incentive as it is not a rebate...they folded at msrp less rebates....

I still chalk that up in my head as a CARS program sale...

Congratulations on making the sale.

My fear is a lot of dealers will make a mistake assuming that they're OK because of the mileage improvement. Your store was smart - you verified the rules, conveyed the bad news and still managed to sell a new truck.

[easportz]

Originally Posted by CarguyCO

Found that out myself today....offered them a trade in value of the same CARS would have given them, less the sales tax incentive as it is not a rebate...they folded at msrp less rebates....

I still chalk that up in my head as a CARS program sale...

I want to thank you guys for giving us a heads up on the older w100/w150 not qualifying for a new truck. we checked friday and it looked like it qualified but after checking the site with the updated info it turns out he can't trade his 92 dodge in on a new F150 but it looks like we will still get the deal....and once again thanks for the info.....

[XDCX]

Originally Posted by easportz

I want to thank you guys for giving us a heads up on the older w100/w150 not qualifying for a new truck. we checked friday and it looked like it qualified but after checking the site with the updated info it turns out he can't trade his 92 dodge in on a new F150 but it looks like we will still get the deal....and once again thanks for the info.....

Thanks for the post - that made my afternoon.

My goal when I started this site was to develop a place where car people could go and help one another. The car business has become so confusing and margins are so tight that no one can afford to make a mistake anymore.

Thanks again for the post and I hope your deal comes together.

[XDCX]

Originally Posted by easportz

turns out he can't trade his 92 dodge in on a new F150 but it looks like we will still get the deal....and once again thanks for the info.....

If your deal on the F150 doesn't come together I'd think about selling him a Ford Ranger.

With a $4500 incentive he could drive it for a year and trade it in on a F150 next year and still come out ahead. :thumbsup_old: (I'm assuming his trade has an ACV near zero)

[easportz]

we've actually discussed that with the customer but i think he's actually going to end up getting the F150 anyway.

i'm still not sure if i like this cash 4 clunkers program or not, every time i think i have it figured out then something new comes up. leave it to the government to come up with something like this....

[XDCX]

Originally Posted by easportz

we've actually discussed that with the customer but i think he's actually going to end up getting the F150 anyway.

i'm still not sure if i like this cash 4 clunkers program or not, every time i think i have it figured out then something new comes up. leave it to the government to come up with something like this....

In a state like Oregon where there's no sales tax I wonder if there will be many customers "flipping" cars in an effort to take advantage of the CARS incentive?

Concerning the complexity of the CARS program, it's definitely more involved than the way it was first explained. I'm sure there will be some dealers who get burned because they made a simple mistake.