10 Things You Should Know About Cash for Clunkers

Re: Bruce of IL

Dealer participation in C4C is optional, and dealers must register if they choose to participate. You can find answers to many questions at the official website www.cars.gov.

Beyond that, I would advise that you pay -no- attention to what one dealer has to say about what another dealer can or will do for you. Contact as many other dealers as you want, and offer them the same price for the car. A participating dealer may even get you the exact same car at the exact same price through a dealer trade.

No dealer wants to lose a sale to another dealer, and pretty much every dealer I went to tried to convince me that the world would come to an end if I didn't sign papers before I left the lot. I was told things like "other dealers" would make me sign a waiver to pay back the C4C money if the government failed to pay, or that "other dealers" were charging premiums above sticker price because there was such a shortage of cars. While trying to decide which model of car to buy, it was amazing how every model I looked at was somehow the fastest selling, most difficult to get car on the market.

Contrary to all of that, I shopped until I found the car I wanted at the price I was willing to pay -- no waivers, no premiums, no compromise. While it was true that any given car I looked at might not have there the next day, new inventory was showing up somewhere nearly every day.

Don't let yourself be pressured by a salesperson, and don't fall into the trap of arguing with one. Shop around.

Geo of MI @ Aug 17, 2009 15:24:16 PM

Dealers in position to take buyers money

I have just completed negotiations to establish a price for a 2009 Toyota Avalon. After much communication back and forth, I agreed to the price the dealership was asking. It was about $3,000 less than the Manufacturers Suggested Retail Price (MSRP).

As we were discussing the method of down payment to hold the car, I explained that I had a clinker car to turn in that meets the standard for the $3,500 clunker rebate. The sales person said that they wouldn't accept the trade-in for the clunker program. She said that this dealership did not participate in the clunker rebate program. I didn't realize that dealerships are free to opt in or out; I thought this was the customer's choice.

She went on to say that should I find a Toyota dealership that participates in the program, I should expect to pay $500 under the MSRP. The dealership would then deduct the $3,500 clunker rebate from that price. The net result is that I would receive the benefit of $500 from the rebate; the dealership would receive the benefit of $3,000.

For me, the effect of this manipulation by a dealership would be an additional cost of $2,500 based on paying $500 below the MSRP when using the clunker rebate versus paying $3,000 below MSRP when not using the clunker rebate.

I thought this rebate money was supposed to be applied in full to reduce the customers cost. However, it appears the dealerships are using it to increase the amount they receive for their new cars.

Bruce Strom of IL @ Aug 17, 2009 12:17:37 PM

Too many left out

I guess I'm just torqued because I am one of the many people who missed one of the many cut-offs for this program. Like many other people, my sister was laid off in December last year, and she had to let her 2007 Chevy Silverado go back to the bank. I helped her buy a 1991 Ford Ranger in January. When I heard of the CFC Program, I thought it would be great to help her get back into a new, reliable truck, but alas a qualifying vehicle has to be owned and tagged for one year.

I understand that they wanted to keep "prospectors" from getting junk and turning it in for new cars, but one whole year? Come on! A lot of people weren't really hit by the brunt of the economic down-turn until early this year. There is no way that she could have know about this program back them. Particularly since the government has been arguing about the details of the program right up until the hour it took effect it took effect! Sad.

Braddock of FL @ Aug 07, 2009 16:35:32 PM

Poor and Handicapped

I find it sad that people like me, and there are many, who are handicapped (disabled) with handicapped vehicles are not even given a thought. In my case I have MS and a 15 year old handicapped van with a lift for my scooter and hand controls for the brakes and accelerator as well as steering controls. The frame rusted through and broke. It was welded back together so I could get it home and strip the handicapped equipment out of it. I had been looking forward to this program, hopeful of getting a small hatchback. I missed the mileage requirement by about 2 gpm. I have a high credit score but low income. I could have handled a payment but it would be tough. I own a small house in a national forest and there is no such thing as public transportation. The nearest wall-mart or k-mart is at least 36 miles away as is the nearest VA clinic. On the bright side, I've lost about 15lbs. I like many, many others are left stranded. It's like the poor, the sick and the working poor are invisible.

G. Stone

Gerald Stone of MI @ Aug 06, 2009 13:36:45 PM

New Ford

Contrary to many pre-program editorials, there seems to be plenty of people driving clunkers who can afford new cars. On the other hand, the money wasn't gone in the first couple of days as many salespeople tried to convince me, and it isn't clear if the money is even gone yet.

I said goodbye to my old Jeep last night and drove away in my new Ford Escape. In spite of the panic of last week, the dealer said he will take the clunkers until he receives official word that the program is closed. I was not asked to sign any waivers to reimburse the dealer if he doesn't get the government money.

It took awhile to find the car I wanted. Some dealer lots were scarcely supplied even before the program. It was confusing to read news reports citing several weeks to a few months of 2009 GM, Ford, and Chrysler inventory only to find hardly anything available on the lots. Good deal or no, I wasn't going to buy something I didn't want. Patience and persistence paid off, and I was able to get the car I was looking for when it rolled off the truck.

An upside to the craziness at the lots is that the salespeople are too busy to be annoying. With people waiting in line to see cars, there was no more insistence that I look at cars I didn't ask about, tour dealer facilities, or meet the owners. With the number of cars sold and all of the paperwork required, it was an hour past closing when they got to my paperwork, and another guy was still next after me. With the staff wanting to go home, there was no effort to sell me upgrades like credit insurance, protective finishes, or extended warranties. Woo Hoo!

It will be fun to see what the new cars are like when in ready to buy again -- in about 12 years.

Geo of MI @ Aug 05, 2009 08:20:45 AM

no cerdit

well its find and dandy for those who have credit as always somebody in a 97 ford explore has a car not 15 yrs old and owes money on it so yea trade-in for another suv me my truck is a 91 Nissan 4x4 suv with over 200,000 mi paid off in fact paid cash at time workin makeing good money bad credit got hurt real bad at work for a company that had no worker comp. went bankrupt got out of be sued now after years of fight the feds get ssdi so cant cash in as dont make enough money to get a loan even from the loan thieves so the poor are out as the bus stop at 6:00 maybe 7:00 so no night life so shove it i'll drive it till it drops and buy another jap truck if there are any left for us poor folk to buy for cash lets forget the auto co. and build a real bullet train one that off the ground runs on magnets do 200mph like in the rest of the world not am track but fast track forget gas cars we will run out i dont care what that oil man says there is only so much look around in your small town and see all the gas being used and think that over 100,000 small towns around the world we are ou.t bye

paul abbey of KS @ Aug 05, 2009 00:47:20 AM

makes me maddddd!

i heard they are ruining the engines of our american classics! what dumbass thought of this? a global warming nut? you people need to get a grip!

yo mama obama of MO @ Aug 04, 2009 23:06:32 PM

does the dealer hold your "clunker" til gvt. approves?

A friend told me that she took her clunker to a dealer and they said she would have to leave it there until it was approved by the government...(roughly, 3or4 days) meanwhile, you are stuck w/o a vehicle and aren't even sure the trade will be completed... is there any truth to this? I hope someone can shed some light on this for me... thank you...

j.j. saginaw of MI @ Aug 04, 2009 19:25:39 PM