Cash for Clunkers

[middsmith]

<p>

I’m glad the dealers in your area are blowing this opportunity, because it means more of those federal dollars will be spent in Minnesota, and more consumer dollars will be leveraged into circulation in our local economy, not yours.

I’ve never said they are blowing this opportunity.<br>
It’s easier for bystanders to comment on the success of the program. For those who actually participated, it’s not at all smooth sailing and definitely frustrating. Of course the news doesn’t cover any of these.</p>

<p>Here are some typical problem CARS buyers have</p>

<p>

My application and all paperwork was submitted on the first day and the dealer sent us home with our clunker to wait the “48 hours” for approval before we could pick up our new car (currently sitting on the dealer lot). Three weeks later and I have not heard anything (despite 3x weekly calls). I brought the ruling (below)to the dealer with the intention of picking up the new car since the rules were now clearly spelled out. Response “the government website must have been hacked. We are not releasing cars without approval. Now I fully understand their point of view but… it is on the government website. </p>

<p>I don’t really feel that we are in a position to walk away from this deal since it took 2 weeks to find the vehicle and we are already 18 days in waiting for approval. Has anyone else been thrown this “hackers” line? I dis call the number listed on the cars.gov site (it is a typo BTW) and got a person who had not heard of the cars.gov website (english not their first language). They took my name with a promise for someone to call back. I was very concerned with the lack of organization on the phone… makes me think all the estimates for training and processing application on this website are grossly underestimated.</p>

<p>Has anyone out their actually been approved? I don’t mean allowed to take their cars home but actually been approved by the gov’t?

</p>

<p>

dealers in NY don’t seem to budge very much with price.

</p>

<p>

Just came back from a local Toyota Dealership… Wanted to get a Prius and use the Cash For Clunkers Program. </p>

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

<p>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…

</p>

[bclintonk]

<p>

@middsmith

It’s easier for bystanders to comment on the success of the program. For those who actually participated, it’s not at all smooth sailing and definitely frustrating. Of course the news doesn’t cover any of these.

</p>

<p>Well, all I can say is the biggest complaints around here have been that dealer inventories of the most popular models are running low and dealers may have to leave deals on the table because they’re running out of cars to sell.</p>

<p>[Local</a> sales soaring with Cash for Clunkers | The Republican Eagle | Red Wing, Minnesota](<a href=“http://www.republican-eagle.com/event/article/id/60791/]Local”>http://www.republican-eagle.com/event/article/id/60791/)
[Cash</a> for Clunkers drains inventories - NUJournal.com | News, Sports, Jobs - The Journal, New Ulm, MN](<a href=“News, Sports, Jobs - The Journal”>News, Sports, Jobs - The Journal)</p>

<p>Though there was a cranky complaint from a Saint Paul columnist today that she couldn’t get anyone’s attention at local car dealerships because she didn’t have a qualifying “clunker” to trade in—they were too busy with other customers, closing “clunker” deals.</p>

<p>[Allison</a> Kaplan: Have cash but no clunker? Good luck finding wheels - TwinCities.com](<a href=“Allison Kaplan: Have cash but no clunker? Good luck finding wheels – Twin Cities”>Allison Kaplan: Have cash but no clunker? Good luck finding wheels – Twin Cities)</p>

<p>Meanwhile over at the local Ford plant, everyone’s going on overtime (10 extra hours/wk at time-and-half, naturally, bossting take-home pay by nearly 40%) so they can ramp up production of small, fuel-efficient Ranger pickups to meet the surge in demand.</p>

<p>[Ford</a> plant to work OT as Ranger production increases - TwinCities.com](<a href=“Ford plant to boost Ranger production – Twin Cities”>Ford plant to boost Ranger production – Twin Cities)</p>

<p>Admittedly, some Minnesota car dealers are nervous that some of their rebates won’t be approved and they’ll be left holding the bag. Their solution? Have the buyer sign a side contract promising to pay the difference or return the car if the rebate isn’t approved. Result? Instant delivery of vehicle, and if the paperwork doesn’t go through, the customers gives the car back.</p>

[middsmith]

<p>

Admittedly, some Minnesota car dealers are nervous that some of their rebates won’t be approved and they’ll be left holding the bag. Their solution? Have the buyer sign a side contract promising to pay the difference or return the car if the rebate isn’t approved. Result? Instant delivery of vehicle, and if the paperwork doesn’t go through, the customers gives the car back.

</p>

<p>If you buy a car through CARS, would you be comfortable signing that addendum? The only reason you’d buy is $4500. The dealer can mess up the submission process and you will be on the hook for that $4500. Another the thing is you don’t just give a car back, you give a car back with 1000 miles on it. (3-4 weeks waiting for approval) The dealer can charge you a leg & an arm for that 1000 miles on their new car. </p>

<p>Here’s another one.</p>

<p>

My dealer (Heintz Toyota of Mankato) informed me that I had to entirely pay the full price of the vehicle before they would submit the paperwork and in 10 days I could pick up my new Toyota, that was over two weeks ago. Now I am paying full coverage insurance on a vehicle I do not drive and I am making my first car payment today on a vehicle I do not have. Dealer refused to give up vehicle, even when I confronted them with the new update on the cars.gov website. I waited for two hours on the “Hotline” to report my dealer but I am not sure what that will do. My salesperson has been extra rude and now I am stuck becuase I already paid for the vehicle. They have over 125 sold cars in thier parking lot that they are holding hostage until they get their rebate money, they have recieved two since the program started. My vehicle I owned for over 8 years totally qualifies for the program, I think the dealers had a choice to join the program therefore should follow all the rules of it or be fined for fraud.

</p>

[TrixieAnn]

<p>Our new Prius is being held hostage at the Toyota dealership for over 2 weeks now - paid in full. So we are still driving our 12 year old clunker. We heard this week that the confirmations are just starting to come in. BTW we paid full price - no one was giving deals on the Prius.</p>

[electronblue]

<p>My neighbor got a Prius through this program with a discount above the $4500. End price was just under 20K plus taxes and fees. And no holding the car hostage. I guess it depends on the dealer. They said cars were flying out of the dealership. I’d consider it but our two older cars don’t qualify.</p>

[kleibo]

<p>I did the deal today. Traded in my 2002 Dodge Caravan for a 2010 Ford Focus. Got the $4500 for the cash for clunkers and $1500 rebate on the Focus for a total of $6000 off. I paid $13,200 plus all taxes and mv fees for a total of $14,900. I was happy.</p>

[ucsd_ucla_dad]

<p>Congrats kleibo! I hope you enjoy driving your new car. It should be much more enjoyable driving a Focus rather than a Caravan.</p>

[kleibo]

<p>Yes, I loved it when I took the test drive. A little less peppie than I was used to - the caravan was a V6 and my husbands car is a V8, but definetly sufficient. And I know for sure I will get much better gas mileage. I drive 60 miles a day round trip so gas is a weekly cost for me - so I should see some savings there. The dealer I went to had just gotten 6 Ford Focuses in yesterday and I bought number 5 with one remaining - he didn’t think it would last the day. All in all - I feel really good about the purchase. I’m always nervous when buying big tickets items, but I feel good about this one.</p>

[bclintonk]

<p>

@middsmith

If you buy a car through CARS, would you be comfortable signing that addendum? The only reason you’d buy is $4500. The dealer can mess up the submission process and you will be on the hook for that $4500. Another the thing is you don’t just give a car back, you give a car back with 1000 miles on it. (3-4 weeks waiting for approval) The dealer can charge you a leg & an arm for that 1000 miles on their new car.

</p>

<p>No, I wouldn’t sign that. But few dealers are even trying it because they’re running into consumer resistance. Say what you will, deals are getting done, cars are flying out of the dealer showrooms, and manufacturers are ramping up production. The criteria for the program are objective, and a competent dealer should be able to tell whether a particular deal will qualify. They’re not at any real risk; there are just a few Nervous Nellies out there. You might wish the program to fail. But so far it’s been an overwhelming success.</p>

[swimcatsmom]

<p>My only problem with the program is that I am not eligible because my old, hail damaged and written off by the insurance, broken AC clunker is a tad over the mileage. That $4500 would have had me in a Honda Fit or something with good mileage, even if I had had to go stock shelves in walmart! And the other old car that meets the mileage was not insured.</p>

<p>Congrats kleibo. I am suffering from a bad case of the green eyed monster over here :)!!</p>

[middsmith]

<p>

The criteria for the program are objective, and a competent dealer should be able to tell whether a particular deal will qualify. They’re not at any real risk; there are just a few Nervous Nellies out there. You might wish the program to fail. But so far it’s been an overwhelming success.

</p>

<p>Contrary to your belief, I think this program could be something. But it’s bad implementation from the NHTSA, EPA from the get go.<br>
They could let more cars qualify, and new cars must be at least 35mpg.
They could reduce the grant to 3k.
etc…</p>

<p>As for “few Nervous Nellies” and “a competent dealer should be able to …”
They rejected 80% of the claims so far. That means the majority is incompetent? Dealers aren’t releasing cars or make sure if they do release, you write them a check for 4500. If the 80% holds, they will cash that check and you are SOL. </p>

<p>[Clunker</a> customers can get factory-orders - Washington Times](<a href=“http://www.washtimes.com/news/2009/aug/14/clunkers-program-not-limited-to-cars-on-lots/?feat=home_headlines]Clunker”>http://www.washtimes.com/news/2009/aug/14/clunkers-program-not-limited-to-cars-on-lots/?feat=home_headlines)</p>

[sax]

<p>“80% of the claims have beeen rejected in many cases due to simple clerical errors” is the statement being quoted. We had to submit additional verification of a years insurance because our insurance cards only show one calender year from April to April. No big deal to send the extra info. The website is very easy to use and pretty self explainatory. I am happy with our deal but it would have been sweeter and a bit cheaper had d been able to custom order her car like you can now.</p>

<p>Not many choices available that can get a combined 30 mpg rating</p>

[kleibo]

<p>My dealer has been in business for about 60 years and I had all, if not extensive, documentation when I came in - 5 years worth of insurance and registration cards, all the original documentation from when I bought the van, original title, etc. He took copies of everything - he says when they first started doing the cash for clunkers all of the deals were rejected, but not because the trade did not qualify, but because they did not include certain docs, etc. Now that it has been going on for awhile, he knows exactly what to send in. So far, it has been a smooth transaction.</p>

[RebelCats]

<p>Cash for Clunkers program to end Monday, August 24
[‘Cash</a> for clunkers’ program to end Monday – latimes.com](<a href=“http://www.latimes.com/business/la-fi-cash-clunkers21-2009aug21,0,1426928.story]'Cash”>http://www.latimes.com/business/la-fi-cash-clunkers21-2009aug21,0,1426928.story)</p>

<p>

The Obama administration says all transactions under the popular program must be submitted before 5 p.m. PDT Monday. Buyers and dealers are advised to get paperwork done before deals are made.

</p>

<p>More in the link.</p>