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Cash for Clunkers - The latest information available
The government Web site for the latest information is here
For an explanation of the law as it is currently written go here or open the attached pdf.
The program roll out time line is here
It seems that it will be difficult to sell to customers July 1 (the time period vehicles are to be eligible) if the program doesn't roll out until late July.
For an explanation of the law as it is currently written go here or open the attached pdf.
The program roll out time line is here
It seems that it will be difficult to sell to customers July 1 (the time period vehicles are to be eligible) if the program doesn't roll out until late July.
Tags: cash, clunkers, for, new, vehicles, voucher
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CARS-Law.pdf, 69 KB
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Replies to This Discussion
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Permalink Reply by Tom White Jr. on -
How do dealers become "participating dealers?" The site says dealers must register with the government. Does anyone have any info on how to do this?
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Permalink Reply by Harlene Doane on -
Tom, the government isn't ready for dealers yet. The primary site httl://cars.gov is supposed to be the home for all information as it is released. They are going to have some dandy tracking in place to ensure that they don't exceed their allotment and that they don't exceed the restrictions on class 3 trucks which can only account for a small percentage of the vouchers. I would be surprised if dealer sign-ups take place before the first of July at the earliest.
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Permalink Reply by Harlene Doane on
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http://cars.gov helps if you type it correctly :-)
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Permalink Reply by David Ruggles on -
The clunkier the trade in, the more the voucher is worth in net terms. A $4000. ACV trade in will only generate a $500. net incentive on a $4500. voucher because the trade has to be crunched.. I wonder how many folks will be stripping tires, batteries, etc. before bring their vehicle to the dealership. Many of the vehicles the government calls clunkers are vehicles called inventory by the BHPH business.
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Permalink Reply by Paul Berndt on -
I really dont see how this is going to work out for anyone. If the person driving a, by governments definition "clunker", car they can afford that gets them around with less than 18 mpg so be it. How will they afford a "new" car that fits into the predetermined scale? Beyond the potential $4,500.00 where is the extra money going to come from to buy the new car? They are driveing that "clunker" because it is what they can afford.
To me it just looks like a scam to get customers to buy a new car. Am I off base with this thought?
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Permalink Reply by Charles Kiser on -
Guys! Let's be thankful for anything that sends a bunch of new cars into the street! If our industry is going to make it in the short term we have got to sell some new!! Taking out a bunch of BHPH cars from the system is going to definitely affect the prices in Oct-Dec of this year, I expect to show a wholesale profit as the pricing rolls upward! The one thing to remember is that the normal "price bottom" of Oct-Nov will not happen if this program does close to what it is expected to do so watch the water you pile up between now and then, you won't be able to cover it up with those "rough book" buys !
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Permalink Reply by Tom White Jr. on
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Charles, you are SO SO RIGHT!!! Despite all the negative publicity regarding this law, our store is gearing up to take full advantage of the opportunity. I agree with both Greg and Harlene that this is going to kick some serious Special Finance butt! Hopefully, all of my competitors read about how crappy this law is and do nothing while we continue to take market share from them...
I'll worry about used car values in the fourth quarter; it's full steam ahead selling new cars until then...
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Permalink Reply by Ben Misra (secondarypro) on -
The problem is going to be the trade ins that we used to sell and make money. Lots of nice trades get poor gas mileage.
So now the customers know what the invoice is, what the rebates are and they can get a fixed amount for a trade in......why do they need us?
Sounds like I need to buy a scrap yard.
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Permalink Reply by Charles Kiser on
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Scrap yards will be charging us to take the cars in 45 days or less, they have little storage space left & can process only so many a day! Let's stay focused on the positive things that will happen as we move RETAIL cars into the system! As GM and Chrysler move away from rental car sales (unprofitable but necessary in the past) and banks get away from leasing where will the used cars of the future come from? We have got to get the new market a little more consistent if we have any chance at all of building a consistent used car department (or used car store). Watch the program cars in October, I believe they will bring just as much or more than they do now! Chrysler has less than 12,000 program units left in the whole Southeast region, I'm betting they are not the only one!! Sell new today to make the used of tomorrow!!
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Permalink Reply by Michael Boyd on -
what about a site where we sign up ??
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Permalink Reply by Harlene Doane on
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Michael, there are sites claiming dealers can sign up, however to date the only ones we have seen are only marketing companies. My guess for the purpose of building a base of dealers to potentially sell consumer leads to. The official government site to watch is http://cars.gov or just follow this thread and we will keep updating as more news is released. You will have to sign up with the government as soon as they figure out how to administer the program. The government has to keep track of dealers on the program to make sure they don't "overspend" the balance of money since one segment of trucks can not exceed 7.5% of all the vouchers issued.
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Permalink Reply by Ben Harned on -
any news for used vehicles or am I missing something??
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