Cash for clunkers - Page 2

crowe · 06-19-2009, 03:36 PM

“U.S. Transportation Department has 30 days to put regulations for the program in place” Supposed to start in 10 days on 7/1.
Hope they hurry up this could slow bus down till it starts.

XDCX · 06-19-2009, 04:03 PM

Quote:

Originally Posted by crowe

“U.S. Transportation Department has 30 days to put regulations for the program in place” Supposed to start in 10 days on 7/1.
Hope they hurry up this could slow bus down till it starts.

That's a great point - it seems like there are a lot of unanswered questions for a program that's supposed to start in 10 days.

I'm also wondering how the dealers are going to get paid? The last thing the dealers need right now is anything that puts a further strain on cash flow.

Finally, my bet is there are going to be a fair percentage of customers who become angry once they learn their "clunker" doesn't qualify because its EPA Fuel Economy Rating is too high. I would guess that most 4 cylinder and 6 cylinder cars won't qualify.

Txflyer · 06-19-2009, 04:50 PM

The program itself is starting to look like a clunker. Rules not finalized, dealers having to wait for reimbursement from the govt, lots of grey area . . . . . .

F&I Pro · 06-20-2009, 08:49 AM

The other question is how many dealers will go through the registration process to jump in and see how much red tape is involved in getting the "vouchers"? I can see this as another cluster ----. Why can't we just get back to the basics and do what we do best, sell cars and make $

XDCX · 06-20-2009, 09:00 AM

While the goal of this legislation is clearly aimed at increasing car sales, what do you think the "unintended consequences" will be?

As I stated in an earlier post, I'm not sure there are too many people who own qualifying vehicles that either want or can qualify for a new car. So my guess is the majority of the purchases will be lower priced vehicles.

My bet is the OEMs with cheap, high EPA vehicles will do the best with this program. I can envision someone with an old V-8 sedan trading it in on a $12,000 Kia and collecting the $4,500 incentive.

So, back to the original question, my bet is one of the "unintended consequences" will be that the value of certain used cars will experience a significant drop because the used car can no longer compete with the new car. As an example, why would you want a 2008 Kia on your Used Car lot if you're competing against a new car with a $4,500 added incentive?

dafuzz1956 · 06-20-2009, 09:45 AM

Quote:

Originally Posted by F&I Pro

The other question is how many dealers will go through the registration process to jump in and see how much red tape is involved in getting the "vouchers"? I can see this as another cluster ----. Why can't we just get back to the basics and do what we do best, sell cars and make $

I probly should not go here, but what the heck, IS'NT THAT THE SOCIALIST WAY ?

jules4jeeps · 06-20-2009, 03:24 PM

actually the more details I learn of this program, the more relieved I am we do not have to bother with it. We already had a customer express he expects his trade allowance and $4500 on top of that. If we have enough gross in a car we can show $4500 for any old clunker to make a deal.

zohpy · 06-21-2009, 07:53 AM

Well I'm thinking that with all the misinformation out there my clunker line is starting to look pretty good right now. Of course I don't know how the customer will get by the 12 mos ownership stip with the time constratints on the program.

possum · 06-22-2009, 06:05 AM

Most customers with this type of trade, do not have the credit to make the deal. The trade has to almost worthless, yet have insurance. I'm glad this program is not our problem any longer.

F&I Pro · 06-22-2009, 06:43 AM

Quote:

Originally Posted by jules4jeeps

actually the more details I learn of this program, the more relieved I am we do not have to bother with it. We already had a customer express he expects his trade allowance and $4500 on top of that. If we have enough gross in a car we can show $4500 for any old clunker to make a deal.

With the program applying only to new vehicles, unless you're using addendums, having $4500 in gross is a rarity, still the customer who will qualify for this program where do you get the money for the secondary fees involved....once again, a WELL thought out program

XDCX · 06-22-2009, 01:11 PM

Quote:

Originally Posted by F&I Pro

With the program applying only to new vehicles, unless you're using addendums, having $4500 in gross is a rarity, still the customer who will qualify for this program where do you get the money for the secondary fees involved....once again, a WELL thought out program

When she's talking about a $4,500 gross, I think jules has already made the mental transition to running an Independent Dealership.

F&I Pro · 06-22-2009, 02:19 PM

And sounds as though she'll do well

zohpy · 06-23-2009, 06:27 AM

I have no doubt Jules will do well. She is one smart lady.

F&I Pro · 06-23-2009, 07:19 AM

Now the Gov't has to create more jobs to oversee the program, determine ways to avoid fraud and figure out if this can be done in one visit to the dealer or if the customer will have to make two trips to determine eligibility...this just keeps getting crazier by the minute

CL Pgh · 06-23-2009, 04:28 PM

Was just reading through the CARS website and ran across this FAQ:

Q: In addition to the credit, will I get the full value of my trade-in vehicle?

A: No. The law requires your trade-in vehicle to be destroyed. Therefore, the value you negotiate with the dealer for your trade-in vehicle is not likely to exceed its scrap value. The law requires the dealer to disclose to you an estimate of the scrap value of your trade-in vehicle.

Please tell me we're not going to need to "negotiate" the SCRAP value with a customers trade-in!?

06-20-2009, 09:00 AM	#20
XDCX Administrator Join Date: Nov 2007 Posts: 14,869	What will the "Unintended Consequences" be? While the goal of this legislation is clearly aimed at increasing car sales, what do you think the "unintended consequences" will be? As I stated in an earlier post, I'm not sure there are too many people who own qualifying vehicles that either want or can qualify for a new car. So my guess is the majority of the purchases will be lower priced vehicles. My bet is the OEMs with cheap, high EPA vehicles will do the best with this program. I can envision someone with an old V-8 sedan trading it in on a $12,000 Kia and collecting the $4,500 incentive. So, back to the original question, my bet is one of the "unintended consequences" will be that the value of certain used cars will experience a significant drop because the used car can no longer compete with the new car. As an example, why would you want a 2008 Kia on your Used Car lot if you're competing against a new car with a $4,500 added incentive?

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06-19-2009, 03:36 PM	#16
crowe Senior Member Join Date: Oct 2008 Posts: 626	“U.S. Transportation Department has 30 days to put regulations for the program in place” Supposed to start in 10 days on 7/1. Hope they hurry up this could slow bus down till it starts.

06-19-2009, 04:50 PM	#18
Txflyer Senior Member Join Date: Jan 2009 Posts: 953	The program itself is starting to look like a clunker. Rules not finalized, dealers having to wait for reimbursement from the govt, lots of grey area . . . . . .

06-20-2009, 08:49 AM	#19
F&I Pro Senior Member Join Date: Oct 2008 Posts: 263	The other question is how many dealers will go through the registration process to jump in and see how much red tape is involved in getting the "vouchers"? I can see this as another cluster ----. Why can't we just get back to the basics and do what we do best, sell cars and make $

06-20-2009, 03:24 PM	#22
jules4jeeps Senior Member Join Date: Jan 2009 Posts: 126	actually the more details I learn of this program, the more relieved I am we do not have to bother with it. We already had a customer express he expects his trade allowance and $4500 on top of that. If we have enough gross in a car we can show $4500 for any old clunker to make a deal.

06-21-2009, 07:53 AM	#23
zohpy Senior Member Join Date: Jan 2009 Posts: 119	Well I'm thinking that with all the misinformation out there my clunker line is starting to look pretty good right now. Of course I don't know how the customer will get by the 12 mos ownership stip with the time constratints on the program.

06-22-2009, 06:05 AM	#24
possum Senior Member Join Date: Jan 2009 Posts: 1,122	Most customers with this type of trade, do not have the credit to make the deal. The trade has to almost worthless, yet have insurance. I'm glad this program is not our problem any longer.

06-22-2009, 02:19 PM	#27
F&I Pro Senior Member Join Date: Oct 2008 Posts: 263	And sounds as though she'll do well

06-23-2009, 06:27 AM	#28
zohpy Senior Member Join Date: Jan 2009 Posts: 119	I have no doubt Jules will do well. She is one smart lady.

06-23-2009, 07:19 AM	#29
F&I Pro Senior Member Join Date: Oct 2008 Posts: 263	Now the Gov't has to create more jobs to oversee the program, determine ways to avoid fraud and figure out if this can be done in one visit to the dealer or if the customer will have to make two trips to determine eligibility...this just keeps getting crazier by the minute

06-23-2009, 04:28 PM	#30
CL Pgh Senior Member Join Date: Oct 2008 Posts: 1,242	Was just reading through the CARS website and ran across this FAQ: Q: In addition to the credit, will I get the full value of my trade-in vehicle? A: No. The law requires your trade-in vehicle to be destroyed. Therefore, the value you negotiate with the dealer for your trade-in vehicle is not likely to exceed its scrap value. The law requires the dealer to disclose to you an estimate of the scrap value of your trade-in vehicle. *Please* tell me we're not going to need to "negotiate" the SCRAP value with a customers trade-in!?