Consumers can now order a car that is in production or in transit to a dealer and still qualify for the Cash for Clunkers rebate.   The car does not have to be physically in stock. 

The move came as dealers and automotive groups applied pressure on the NHTSA to meet local demand.  The ruling is not without controversy.

Dealers Can Now Factory Order CARS

Dealers who want to file deals for an ordered vehicle must first obtain the new car’s vehicle identification number from a manufacturer, NHTSA said in a statement. Reimbursement requests still must have all required documents for the trade-in vehicle. 

This adds an interesting development.  If the car will be arriving in September, dealers may not be able to add August factory rebates to the deal.

This decision looks like a win for consumers in local markets that have depleted inventory and a loss for dealers who took the risk to stock up on popular cars before the Cash for Clunkers program started.  Dealers who have contact us have mixed opinions on today’s latest change in CARS rules.

One dealer wrote to say:

 ”I invested over $500,000 to bring in extra cars for the program because I knew it would be popular.  I thought that I would have a strategic advantage and be rewarded because my local competition did not stock up.  Today’s decision took that away advantage.  This is just another example how changing rules have made it difficult for dealers to support the program.”

This is not to say that the dealer was not pricing their cars competitively.  It is just saying that dealers who took an entrepreneurial risk got up ended by the NHTSA.

From dealer reports, Ford was caught unprepared for the demand. Ford dealers we have surveyed have been the hardest hit by lack of inventory.  The industry veteran that we spoke with said that the NHTSA concession today seems to favor the Big Three US automakers that are low on inventory while foreign manufacturers seem to have more supply. 

NHTSA Clarifies Sales Practices

Dealers and consumers have been active on our forums regarding yesterday’s announcement that dealers cannot hold new cars on transactions that have all paperwork submitted.  Read our forums to see that many dealers are thumbing their noses at the NHTSA and consumers saying “NO WAY BABY”.

The Senate finally voted to approve the $2 Billion dollar funding bill for the popular NHTSA CARS program. The funding will carry the Cash for Clunkers program through the Labor Day weekend.

We anticipate that the $2 billion in funding is already partially spent so the monies approved today will not last very long.

Car shoppers who qualify are encouraged to get out to a local car dealer as soon as possible.  This word of advice is to avoid being stopped out of the Cash for Clunkers program.

Automotive dealers have been pleased with the showroom traffic and interest in the CARS program but the funding can not last much past Labor Day based on current sales numbers released by the NHTSA and survey that we have taken.

Cash For Clunkers Checklist

Qualifying consumers are reminded to check program requirements BEFORE going to a local car dealers.  Here is are suggested steps for success:

1. Download our Cash For Clunkers Checklist
2. Using our checklist, go to www.cars.gov and qualify your clunker.
3. Understand that if you don’t qualify, your local dealer cannot change the rules.
4. If you want a local dealer to contact you, complete the form on the left or you can call ANY local dealer to see if they have the car you want in stock.
5. Review all factory rebates that may be added to your CARS credit. Check our list
6. Negoitate your best deal.
7. Keep in mind that you may not be able to drive away with your new car untill all your paperwork is approved by the government.

Video Snapshots From C-SPAN Video Coverage

Senator Richard Shelby says the Cash for Clunkers program is a “clunker”. He claims that many clunkers that were traded in would have been traded in normally without any stimulus needed.		Senator Johnny Isakson is an advocate for a Home Buyer Tax Credit plan to help stimulate the housing and real estate industry. Refers to Cash for Clunkers as a successful program and wants a similar plan for housing.
Senator Debbie Stabenow encouraged the Senate to continue the stimulus bill saying it is a tangible program that consumers can see and feel. She calls the bill a winner. She also asks that no ammendments be adopted which would derail the bill since House is out of session.		Senator Carl Levin urged the Senate not to add any ammendments to the House Bill which would put the death spike in the heart of the Cash for Clunkers Bill. He pointed out that many good amendements would have to be considered when the Senate returns in September.
Senator Jon Kyl wanted to introduce an amendment that would put the CARS program on hold to review spending and make sure deals that were submitted get paid. If the amendment was approved the CARS funding bill would be killed.		Senator Judd Greg claims that his amendment would make sure that the $2 billion in CARS funding debt is not passed to our children. If the Gregg amendment was approved the CARS $2 billion funding bill would have been killed for immediate future.
Senator Tom Coburn’s amendment proposed to give the clunkers to the poor and not to crush them. If his amendment was approved it would have killed the Cash for Clunkers spending bill since the amendment would require a House vote.		Senator David Vitter proposed an amendment on the TARP program which has nothing to do with the CARS program but any new amendments introduced today would kill the Cash for Clunkers funding measure.

The bill was signed into law by President Obama on June 24, 2009 which put in play the creation of the Car Allowance Rebate System (CARS) which is operated by the NHTSA.

We predict that the Senate discussion will be far from friendly. In fact, the initial $1 billion in funding barely made it out of the Senate alive.

The original $1 billion in funding was appended to a larger spending bill and a motion was raised to strip the Cash for Clunkers funding out of the bill. A floor vote was called in the Senate and supporters needed 60 votes to keep the Cash for Clunkers bill alive; they got exactly 60 votes.

With the initial measure passing by just one vote, opponents of the original bill will be gearing up for an even stronger opposition in round two of the Cash for Clunkers cat fight. Some Senators have even threatened a filibuster to block additional funding.

CARS Program Broke

Without additional funding the Cash for Clunkers program may be called to an immediate stop. The initial $1 billion in funding is already gone and Washington can’t let the program run out of gas for too long.

If the Senate vote is blocked or delayed, Washington will be forced to come up with another way to supply the promised funds to reimburse car dealers for trades that have been submitted. The program roll-out has been far from smooth and the lack of clarity about funding is par for the course.

In spite of being out of cash, the NHTSA and Transportation Secretary Raymond LaHood have confidently said that the program is running as planned and has encouraged consumers to go out and purchase a new car under the CARS program.

Firm End Date A Better Choice

Dealers and consumers would be better off if Congress set a firm end date for the Cash for Clunkers program and not a dollar amount. This would take away the fear of funding running out and give consumers and dealers clear notice on when the last day of CARS transactions can be made.

If you are wondering how to get started with the Cash for Clunkers program, our checklist may be able to jump start your success.

The official website for CARS rules is www.cars.gov and our checklist advises consymers to use the information on the NHTSA to confirm that your clunker qualifies.

Download our Cash for Clunkers Consumer Checklist by clicking on the graphic on the right.  We have created an Adoble PDF to make it easy to print on your computer.

Our Cash for Clunkers Checklist was designed to save consumers time in qualifying for the CARS program as well as submitting their purchase for reimbursement at a local new car dealer.

If you would like a local dealer to contact you about your clunker trade-in, you can complete the form on the left or call any local new car dealer in your area.

Understandably, there are many source of information on the program that may appear to be in conflict. Consumers also do not want to believe that they cannot participate in CARS for small lapses in insurance or registration.

Many consumers have told us stories that due to layoffs or financial stress, their clunkers were taken off insurance for a few months or a late bill cause a lapse in their clunker registration. Unfortunately, these requirements are not flexible under current NHTSA rules.

If consumers want to change the rules, we encourage you to voice your vote by signing the Cash for Clunker Petition at www.nocashforclunkers.com

Cash for Clunkers Consumer Checklist

If you don’t have a printer, we have include the contents of the PDF checklist below:

We have created a consumer checklist that dealers and consumers can use to make sure that if you want to particapte in the Car Allowance Rebate System (CARS) that you have all the documentation you need to qualify. You can click on the icon on the right, or cick here, to download this form and print it out for your personal checklit.

Please gather the documents listed below before you go to your local dealer.

Be prepared with your clunker information to ensure that you have a smooth transaction.

Better Organization = Smoother Submissions

Before you call or visit a local new car dealer, understand these non-negotiable requirements:

• If you cannot show continuous insurance and registration for 12 months, you will not qualify.
• If you are the new car purchaser, your name must be on the title of the clunker
• If you have a lien on your clunker, you will not qualify.
• If your clunker is not qualified on www.cars.gov , you cannot qualify regardless of your actual mpg.
• You must be able to drive the clunker to the dealership.
• If your car is not listed on www.cars.gov a dealer will not be able to process your sale.

CARS Document Checklist

Please bring these five documents into the dealership when you are ready to place an order for a new car under the Car Allowance Rebate System (CARS) program. Check www.cars.gov for official program updates before you go to a local dealer.

1. A valid driver’s license.
2. A clear title in your name or jointly owned with your name included. If you recently paid off a lien, you should bring your lien release letter or the previous title that is stamped paid.
3. Proof of continuous insurance for the past 12 months. Documents to bring can include:
   1. A declaration page from your insurance policy showing dates of coverage.
   2. Insurance cards that cover the last 12 months
   3. A letter from your insurance company certifying continuous insurance
4. Proof of continuous registration. Documents to help prove this include:
   1. Registration cards that cover the last 12 months
   2. Experian registration search report (dealer can run this report)
5. A print-out of the www.FuelEconomy.gov website page that shows that your clunker qualifies. This will save you time from assuming that your car currently qualifies.

FuelEconomy.gov is being used by the NHTSA to qualify vehicles for the Car Allowance Rebate System (CARS).  Official instructions for the CARS program tell consumers that this website is the sole basis for qualification.

But consumers are wary since data is changing.

Consumers are writing to us to document that vehicles that qualified as recently as a week ago are now disqualified.

Dozens of consumer compliants are being reported so this does not seem to be an isolated incident.  If this is true, this could undermine the entire qualification process.

Arbitrarily changing data would create even more confusion about the controversial CARS program. The changing data would also create a liability for car dealers making deals based on this data. That would be devastating for car dealers caught in the middle of a data change.

Consumers Are Confused

Writing on www.cashforclunkersfacts.com a consumer said ” My car a 1991 Lexus ES250 V6 automatic was checked by the dealer with 18 mpg combined last Monday using the fueleconomy.gov. Based on that a new car was ordered. Today using the NHTSA Updates Fuel Economy Website for CARS the combined mpg has been changed to 19 mpg combined. The combined mpg number at the fueleconomy.gov also changed to 19 mpg combined.”

Scott shared his frustration: “I went to Fueleconomy.gov again to look up my 1991 Camry v6 automatic. If you look up the original old window sticker mpg numbers (18/24) and then use the converter they have on the site to update the pre-2008 MPG numbers to the new 2008 calculations you will get (16/22) which is not what the CARS calculator is showing. 16/22 is what fueleconomy.gov had listed up to July 24th which allowed me to Qualify for the money. As of July 24th the numbers 16/23. I hope they fix this”

Bob added “I had my 93 Camry wagon V6 auto. go from qualifying at 18 mpg combined Thurs. July 23, to not qualifying Sat. July 25. We found this out as we filled out paperwork at the dealer for the purchase of a new 09 Pontiac Vibe. What gives?”

Jim explained how data changes cost him $1,000: ” My clunker’s mileage also increased. Yesterday it was 17 mpg and today it’s 18! (Its a 1997 Mercury Villager.) I still qualify, but the deal I made last week will now only net me $3,500, not the $4,500 I’d budgeted. If I had known last week, I’d have chosen a different new car with one extra mpg!”

Based on these consumer complaints, we hope that the NHTSA comes out with some damage control information to give consumers and dealers confidence that the website can be trusted.

Document Your Research

We advise that once you have verified your car on www.fueleconomy.gov , that you print out the page before you go to the dealership. For dealers, make sure you print a copy of the list and date and time stamp it. This will assist you in case after you make the trade, the mpg number change and the website does not show the car as qualifying anymore.

If you have had a similar experience, share your specific data below.

We have the final rules for the NHTSA Car Allowance Rebate System (CARS) in hand and we will continue to post our consumer comments and analysis.

To read commentary:  Click Here

Here is the 136 Page NHTSA Document: Cash for Clunkers FINAL RULES

Many questions remain unanswered.  The final rules may resolve some of the questions that consumers have raised.

Cash For Clunkers Rulings

We are hoping that the published document on the official NHTSA CARS website (www.cars.gov ) will answer some of these questions:

1. What do consumers do when their car is not listed on http://fueleconomy.gov?

2. Will cars with outstanding loans (liens) be able to be traded in for a CARS credit?

3. What procedures will be put in place to ensure that cars are not resold?

4. Will clunker owners that had short lapses in insurance or registration do to unforeseen circumstances be allowed to participate?

5. Will parents by able to pass their clunker credit to their children?

6. What paperwork will qualify as proof of continuous insurance and registration?

7. Will consumers get any part of the cash that dealers will receive from the salvage yard?

8. Will dealers be taxed for the CARS government credit as income?

Cubic offers 2 approved designs for dealers to choose from.  Both designs can be customized to your dealer’s brand representation. 

Dealers can contact Cubic Marketing at 866-462-8242 immediately to begin producing their marketing materials and mention the promotional pricing code ‘PCG’ when placing orders.

Visit their website online at http://www.cubicdirectmail.com/

Dealers can visit this special CARS dealer support website by clicking here: Dealer Website

The dealers dedicated website has new information on the program as well as a future section for marketing material compliance. This coming soon area is for dealers to understand and implement advertising program that are compliant with NHTSA rules.

The True Blue website will be very important for car dealers to bookmark during the lifespan of the Car Allowance Rebate System. The NHTSA picked a blue color scheme for the website to differentiate it from the consumer facing website which is lime green.

Do the colors mean that consumers will see all the green and car dealers will be crying to blues with all the paperwork and compliance issues that the program represents?

The website has a Dealer FAQ  page as well as well as a graphical depiction of the the dealer NHTSA interaction will look. View Images.

Dealers should see their official registration letters in the mail this coming week. The letters were mailed on Friday July 17th from an Oklahoma mail facility.

Update:  Thursday July 16th – Letters to dealers should be mailed out tomorrow, July 17th so dealers should have the letters by Monday.  The CARS program is still set to go live on Friday, July 24th.

When the NHTSA hot-line was called today and asked if dealer registration letters were put out in the mail, the answer was NO. 

We predict that the size of the mailing will be over 20,000 pieces; addressed to new car dealers across the country.   Time is running out for getting the program started by July 24, 2009. 

If the NHTSA registration letters were mailed tomorrow on July 15th, we project that a majority of dealers would get the letters on Friday July 17th. That would give every new car dealer in the United states four normal business days to register for the NHTSA Car Allowance Rebate Program if we are to go by the projected July 24th start date.

The scope of this massive registration effort makes us think that a starting date of July 24th seems impossible.  There is no publically confired date for when the letters will be mailed.

Questions on the implementation of the Cash for Clunkers bill remain unanswered.

Will the NHTSA be able to accommodate 20,000 dealer registrations in a short period of time?

The dealer registration process will require the NHTSA to validate the information that is submitted by car dealers. Common sense would also indicate that a number of applications will not be properly submitted the first time around.

This gigantic project, dropped on the NHTSA’s lap, had unrealistic implementation dates from the start.

CARS Final Ruling

The final rules for the Car Allowance Rebate System (CARS) will be ready for prime time by July 24, 2009.   The odds of the CARS program starting on July 24th with registered dealers are very unpredictable.

Will NHTSA allow dealers to participate as long as their application is pending? No one seems to know at this point.

We will wait for the official rules to be posted on the only official website for the CARS program: http://www.cars.gov.

In the meantime car dealers will have to deal with the uncertainty of the process and without clear facts until next week. Car dealers are also having to deal with the increasingly irritated consumer population who would like to purchase a car under this program and has been told to wait.

When we created this blog, the House had two measures being considered.  One was called “Cash for Guzzlers” and the competing bill called “Cash for Clunkers”.  The later bill won the day but it is interesting that Automotive News, a leader in online news coverage, chose the “Cash for Guzzlers” language.  (View Video)

Cash for Guzzlers

Regardless of what you call the program, there are many people that are finding themselves locked out of the program because their actual mpg is not what counts.  The Car Allowance Rebate System (CARS) operated by the NHTSA uses a Federal website for mpg ratings.  To see if your “clunker” or “guzzler” qualifies go to http://cars.gov.

The Automotive News video discusses the option that Congress by increase funding for the program if it a success.  Consumes are hoping that the second round of funding has some changes.  If you would like to read the ideas that consumers have to improve the CARS program, read our “SPEAK UP” commentary from around the country. (click here)

The National Highway Transportation Safety Administration has until July 24, 2009 to implement the program that was created by the Cash for Clunkers bill.

Consumers can get their questions about the CARS program answered on the only official NHTSA website located at http://cars.gov.  There is also an official hotline number: 1-866-CAR-7891.

 The final outcome of today’s educational session left two popular questions unanswered. The third question, which was never submitted to this website, was brought up in the webinar and does pose an interesting inquiry.

CARS Questions Unanswered

Here are three questions that the NHTSA still has to issue a ruling on:

1. Can a parent who has a qualifying “clunker” use it as a credit toward a new car purchase that will be titled in the name of their child?
2. Can a consumer trade-in a qualifying “clunker” if it has a lien?
3. Can non-US citizens who own a qualifying “clunker” participate.

These three questions remained unanswered . The NHTSA said that their attorneys will be reviewing the law to determine the right course of action and to form a rule.

Cash for Clunkers Funding: Will It Last?

We surveyed a number of car dealers after the webinar and many expressed their concern that the CARS funding would run out by the end of August. Everyone was unclear of how additional funding may be secured. If this is the case, consumers who delay in making a decision could be left out of the program. This is not the first time we are hearing concerns about Cash for Clunkers funding.

CARS Dealer Registration Process

Dealers learned today that all major OEM manufacturers have provided the NHTSA with their dealer mailing lists. New car dealers will receive a letter from NHTSA in the mail which will advise them how to register. The official letter will be part of the official registration process.

NHTSA has promised to keep automotive dealers in the loop as the law is interpreted by NHTSA lawyers and asked for their patience. The review process to implement a law and create operational rules normally takes a much longer time. Everyone at the NHTSA is doing the best they can to get the program rules in place by the end of the month.

According to Judge Gerber the plan was the only way to preserve GM’s business. The plan will now allow GM to create a new company minus a pile of debt and expensive contracts.

According to Brian Pasch, CEO of the Pasch Consulting Group, who operates a popular consumer website following the Cash for Clunkers bill:

“From data collected on www.cashforclunkersfacts.com, Chevrolet cars and trucks are the 4th most popular brand on consumers minds who qualify for a Car Allowance Rebate System (CARS) credit. (see chart) From consumer feedback we believe that interest in GM vehicles will increase once the public has knowledge that their bankruptcy plan approval. The news may settle some fears that the company would not be able to stand behind a new car that a consumer would purchase starting July 24, 2009.”

GM Leadership

Fritz Henderson will remain chief executive officer. It is our belief that it will be a difficult challenge for Henderson to rebuild the GM brand and consumer confidence in the company’s future. Since the Department of Treasury owns 60% of the company, it would make common sense that this cloud be lifted before the CARS rebate program starts on July 24, 2009. GM can now leverage the CARS incentives. They will first have to fine tune their consumer pitch explaining how the bankruptcy process will allow GM to emerge a stronger and better operated company.

According to the official press release: “A healthy domestic auto industry remains vital to the global economy and we deeply appreciate the support the U.S., Canadian and Ontario governments and taxpayers have given GM, and the sacrifices that have been made by so many. This has been an especially challenging period, and we’ve had to make very difficult decisions to address some of the issues that have plagued our business for decades. Now it’s our responsibility to fix this business and place the company on a clear path to success without delay,” said GM CEO Fritz Henderson.

Official GM Bankruptcy Press Release

Here is the full press release as posted on the GM media website. Download GM Press Release

Hyundai is out to increase July cars sales despite delays in the implementation of the Cash for Clunkers bill.  For official updates on the program visit http://cars.gov.

Today, Hyundai send their dealers an announcement that was perfectly timed for the July 4th car sales weekend. Dealers received news today about the ”CARS Rebate Advance Program“  only offered by Hyundai.  The program is designed to help car dealers with cash-flow concerns and is completely optional.

Since the official start date for the CARS program is estimated to be July 24th, the firm action gives Hyundai dealers the option to start selling cars in advance of the official NHTSA start date.  The bill outlines that cars sold starting July 1st will qualify but details on how cars will be processed are still unclear.

This may give Hyundai dealers the advance jump on capturing the pent up demand for car sales stalled until the official program begins around July 24th.

The timing for Hyundai is perfect. The of Fourth of July weekend is historically good for car dealers and Hyundai plans to give their network of dealers all the muscle they can deliver to get consumers into a fuel efficient qualifying car.

Hyundai July Rebates

The Car Allowance Rebate System (CARS) which will be operated by the NHTSA will offer cash credits as high as $4,500 for a qualified “clunker”.

Hyundai’s current rebayes are attractive and can be combined with the CARS cash credits For example, if a consumer qualifies for a $4,500 CARS credit, the Hyundai incentives on two popular models yield significant savings to consumers:

• Hyundai Elantra Incentives ($2,000) + CARS Rebate ($4,500) = $6,500 off MSRP
• Hyundai Sonata Incentives ($3,000) + CARS Rebate ($4,500) = $7,500 off MSRP

Consumers should check with their local Hyundai dealer to ensure that these rebates are valid in your area.

Request a Call From a Local Hyundai Dealer

If you would like a local Hyundai dealer to call you about purchasing a new Hyundai car with your qualifying “clunker” rebate complete the form on the left. Due to high demand expected for Hyundai cars, we encourage you to act quickly. Hyundai cars are the sixth most requested car on this website from US consumers.

Our strong word of advice is to WAIT based on new documents posted on the official CARS website http://cars.gov.

As we write this post:

• Car dealers have not REGISTERED for the program because the NHTSA is not ready.
• Car dealers have NO forms, NO procedures or instructions on how to process a “clunker” for trade.
• Registered car dealers will be posted on the NHTSA site and no such list exists.

You get the idea: the NHTSA is working as fast as they can but it’s only been 6 days since the bill was signed.

We can not expect the NHTSA to create a system to register and track a few hundred thousand car sales in one week.  It is not practical to have policies and procedures in place to combat fraud.  This is a big undertaking and the team at the NHTSA must be working around the clock to pull this off.

The Keyword: Wait

Any car dealer that gives a consumer the CARS credit on a new car sales on July 1st runs the risk of complicating their reimbursement process. Don’t take our word for it, read what is posted on the NHTSA website.

Here is the exact wording placed in the official CARS website, http://cars.gov:

“While the CARS Act makes transactions on and after July 1 potentially eligible for credits under the CARS program, interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued. Issuance will occur around July 23.

At that point, NHTSA will have in place detailed provisions about establishing eligibility and a system to ensure the prompt payment of money for credits used under the CARS program.

If dealer choose to structure a transaction before the final rule is issued, they will bear the risks associated with later demonstrating that the transaction meets all of the specifications of the final rule. The dealers should also give the credit to the consumer at the time of such transaction.

The dealer would be reimbursed by NHTSA later if the dealer registers and submits documentation sufficient to demonstrate that the transaction was an eligible one, that the traded in vehicle was properly disposed of, and that all requirements in the final rule were met.”

This is an excerpt from a PDF document on the official CARS website.

New Administrative Headaches For Car Dealers

Car dealers will benefit from the CARS program but they will also have many new headaches to deal with. It would seem unlikely that car dealers will stick their neck out and sell cars starting July 1st without knowing all the rules. Here are just a few new issues that the CARS program will hand dealers:

• Compliance training to ensure that all papwerwork is collected from consumer.
• Dealing with trade-ins that are not listed on http://fueleconomy.gov.
• Storage of clunkers until payment is received, which could be up to 10 days.
• Security to keep the “clunkers” from being vandalized.
• Cashflow delays. The government will review each transaction and payment delays can be expected.
• Dealing with transactions that the government does not approve.

The CARS program will implement the provisions outlined in the “Cash for Clunkers” bill that was signed by President Obama into law. The NHTSA is implementing the bill’s language. The NHTSA did not write the rules; our elected officials wrote the rules.

If you want to express your opinions on the language of the bill, you can click on the “SPEAK UP” button on the right and share your thoughts.

	Go to the official government website http://cars.gov for the CARS program and look-up the COMBINED mpg rating for your car.If you need help reading the EPA charts, click here.You can not skip this step. If your car is not listed, contact the NHTSA.	If your car is rated over 18 miles per gallon on the official CARS website, you do not qualify. This rating is not your actual mpg but a standard rating system for the program. There are no exceptions for cars at this time that are rated 19 mpg or higher.
	If your car is rated as getting a combined mpg of 18 or less, you cleared an important first step.Now you have to make sure your car meets the other requirements for the CARS program which includes ownership, drive-ability, insurance and age.	Go back to http://cars.gov and click on the “CARS FAQ” button. You need to read the latest rules for your trade-in.If your cars qualifies based on the latest information provided on the FAQ page, go to step 3.If you have unanswered questions, contact the NHTSA.
	If your car has passed steps one and two, you can use your car as a trade in to purchase a new fuel efficient car. You DO NOT need a voucher in advance of visiting your local dealer. There is no consumer pre-registration needed. Your local new car dealer will handle all the paperwork starting late July.	Contact a local dealer as soon as the CARS program officially is started. It is estimated that the program will start in late July.To be notified when the program starts via email, click here. When you purchase a new car make sure you inquire about additional manufacturer rebates and incentives.

If you would like a local dealer to contact you about purchasing a new car with your qualified trade-in, complete the form on the left. You can call any local dealer yourself and ask if they will be participating. You can also have us do the work for you and ask them to contact you.

Indeed, last week we were the first to report to Google a scam that was using our website URL in Google Adwords text ads and directing consumers to a phishing scheme website.  Since our site was a popular destination for information on the bill, scammers come out of the woodwork to harm something that is good.  So, please keep apprised on the program rules from reliable sources like http://cars.gov and this website.

Consumers Are Warned

Never give out your social security number to anyone.

We remind consumers not to give out their social security numbers to anyone calling or emailing them to “register” for the CARS program or the Cash for Clunkers program.   Consumers don’t register, car dealers will have to register.

Consumers can verify that their “clunker” qualifies for a voucher on the cars.gov website.  Once they qualify they will go to a local new car dealer to make a new car purchase.   It’s that simple. 

Consumers do not need to get a voucher before you go to the car dealer.   The car dealer will handle all the paperwork.

You do however, have to bring some things with your trade. You’ll need your title and proof that the car was insured and registered in your name continuously for a year.

Please read our updated FAQ page to get updated answers on the bill or visit  http://cars.gov website.

This Cash for Clunkers Website

This website www.cashforguzzlers.net and its partner site www.cashforclunkersfacts.com have been covering the progress of the Cash for Clunkers bill since early May.  For the past 4 months we have been tracking the bill when it was being called by some lawmakers “Cash for Guzzlers” and “Cash for Clunkers”.  Today, the  term Cash for Clunkers has won out but from a marketing perspective we didn’t know which phrase would win so we created two websites.

You will be please to know that we are not associated with any social security number collection schemes.  In the past week a number of website have popped us trying to scam consumers.  This is very sad since we were the first to dedicated site to provide consumer support and tracking for the bill, well before this was approved.

Our website is the benchmark for informed news and content about the bill and we are pleased to have taken all precautions to be accurate in our advice to consumers.

To that degree, we are proud to have created the first opt-in email alert system for consumers to get status reports on the votes in the House and Senate and the eventual signing of the bill. We have thousands of consumers on our email list who get important updates on the bill.

Educate Consumers on Cash for Clunkers

The websites purpose has been to inform consumers about the progress and provisions in the Cash for Clunkers bill. The website has helped thousands of consumers get information on this new legislation. Thousands of consumers have been posted on the progess of the bill as it passed the House and Senate votes. We have been promoting a bill that will help car dealers and consumers.

Our website directs consumers to the Federal website to get accurate information on the program. We are very proud of the service we are providing consumers since understanding the progess of this bill has been challenging. We have responded to hundreds of emails and phone calls about the bill.

Marketing New Car Sales

We are proud that the marketing efforts to create our websites has been successful. The developers of this website specialize in Internet marketing. The fact that our website is so popular is based on our knowledge of automotive search engine optimization (SEO).

Our website has been educating consumers about the bill and getting them excited about buying a new car. The website offers consumers the opportunity to have a local car dealer contact them about purchasing a new car. We created the “Participating Dealer” badge to help car dealers get the word out about the program.

Our website allows consumers to request a local dealer to contact them about a car they want to purchase and is not a CFC registration form.  We are proud that our form is clearly marked and does not ask for a social security number, DOB or call itself a loan form.

CARS Program Launched

This week the NHTSA named the Cash for Clunkers bill’s provision to Car Allowance Rebate System (CARS).

Naming the program this week does not negate the fact that consumers know the cash voucher program as “Cash for Clunkers“. For marketing companies, you have to take a lead and run with it to create awareness. The program starts in approximately 3 weeks and our writing and marketing have made it possible for many Americans to get excited about the bill.

Referring to the program as Cash for Clunkers or Cash for Guzzlers is not mis-informed or mischievous. Everyone in the world called the program “Cash for Clunkers” or “Cash for Guzzlers” until this week.

For bloggers to put down our efforts to promote the bill and help consumers get connected with a new car dealer in their area that can sell them a car with the voucher program is mean spirited.

Car dealers across the nation and consumers alike have been following the progress of the bill  on www.CashforClunkersFacts.com.  Consumers were originally looking forward to a July 1^st start date, which would have made for a frenzied 4th of July holiday shopping weekend.   Now they will have to wait till July 24th to purchase their new car.

The only official Federal website for CARS is located at http://www.cars.gov.

Consumers can follow late breaking developments on the start of the new bill by signing up for email alerts on in the upper left corner of this page or following the live stream of information on Twitter.  The Twitter site is http://twitter.com/cashclunkers

The bill is NOT yet law as the finalized bill must be passed by Congress.  It is expected that a vote could come next week and then President Obama would sign it into law.  Stay posted because the bill seems very likely to pass.

Since the funding is only 25% of what was originally requested, the bill may only be able to provide vouchers for consumers for a limited time.  The thought seems that lawmakers wanted to get the bill started and that the one billion dollars could hold the program until the end of the fiscal year, which is September 30, 2009. 

Democratic supporters of the bill are obviously pleased with the compromise and commitment to fund the program.  A final vote is expected next week.

Consumers are encouraged to connect with a Particiapting Dealer if they are interested in purchasing a car this summer before the funding runs out.  the form on the left can expedite the process of contacting a local dealer who can assist you with your trade in and new purchase.

During the House floor debate, Mazda was called out as one of the automakers supporting the Cash for Clunkers bill in addition to the Detroit 3, Toyota, and Honda.  Toyota could stand to gain the most if the bill passes, as the CashforClunkersfacts.com website reports that Toyota car models lead consumer interest in fuel efficient cars.

The proposal is aimed at jumpstarting the sale of new cars and trucks, with a voucher of up to $4500 given to those who purchase new, more fuel efficient cars.   Environmentalists have their eye on the bill as well as the regulations put forth by the act could mean more environmentally friendly cars on the road, which in turn could reduce the carbon footprint and help position the US to be less dependent on foreign oil.  

Email Alerts

Consumers who would like an email notification when the bill is approved and signed into law, should use our Email Alert signup form in the upper corner of this website.

Cash For Guzzlers Participating Dealers

Consumers who want the best information on their trade and the car they want to purchase, should complete the form on the left.   Fill in the car you would be trading in and indicate the car that you want to purchase.

We’ll have a local Cash for  Guzzlers Participating Dealer contact you.   They will be able to assist you with your new car purchase once the bill is signed into law.

A Cash for Guzzlers Participating Dealer will qualify your trade and present you with a competitive price quote. There is no obligation or fee for the service. Please make sure you include your state and phone number or we can not match you to a local provider.  This way you will be prepared when the bill passes to take advantage of the limited time cash voucher.

Honda, Ford and Chevrolet cars were the second, third and forth choices by consumers which is an easrly indicator of which car dealers would benefit most if the bill was approved.  See chart below:
 

Email Alerts

Consumers who would like an email notification when the bill is approved and signed into law, should use our Email Alert signup form in the upper corner of this website.

Cash For Guzzlers Participating Dealers

Consumers who want the best information on their trade and the car they want to purchase, should complete the form on the left.   Fill in the car you would be trading in and indicate the car that you want to purchase.

We’ll have a local Cash for Guzzlers Participating Dealer contact you.   They will be able to assist you with your new car purchase once the bill is signed into law.

A Cash for Guzzlers Participating Dealer will qualify your trade and present you with a competitive price quote. There is no obligation or fee for the service. Please make sure you include your state and phone number or we can not match you to a local provider.  This way you will be prepared when the bill passes to take advantage of the limited time cash voucher.

However, many America’s who are struggling with unemployment, layoffs and foreclosures will not be able to qualify for a new car loan.  In fact, there has been an upsurge in used car sales at local car dealers who offer a Buy Here Pay Here model.  In this business model, dealers offer consumers the ability to purchase used cars with a payment plan that takes into consideration poor credit.

Buy Here Pay Here

A “Buy Here Pay Here” dealer group in Ohio called ABC Motor Credit is one automotive retailer that has actually seen an uptick in business.  Sam Snellenberger, an executive at the company commented; “In this economy, consumers need reliable transportation to get to work.  We match them with a car and a payment that they can live with; many have had their cars repossessed.  For many consumers, ABC Motor Credit is their last chance to be able to drive to work or find a new job that requires transportation.”

Consumers with poor credit are hoping that the proposed Cash for Guzzlers or Cash for Clunkers bill provides additional support for consumers hit hard by the recession.  Some opposing voices to the current draft of the cash for Clunkers legislation say that the bill is not doing enough to allow consumers with low credit to utilize a cash vouchers.  Some opponents actually have petitioned that the vouchers should not be made available for wealthy Americans.

With poor credit a reality for many Americans living in 2008, used car sales will continue to rise and consumers with poor credit may be forced to drive less fuel efficient cars because they will be priced in the marketplace at the bottom of the value scale.

Drive Forward America Act

The current status of the Cash for Guzzlers bill is still under scrutiny and compromise with Washington laymakers.  A new effort called Drive Forward America Act is another effort to get a cash voucher system passed this summer.  Senators Debbie Stabenow (D-MI) and Sam Brownback (R-KS) are backing this new measure in a bi-partisan effort.

The Vote

The Cash for Guzzlers proposal passed with a 50-4 vote by members of the House Energy and Commerce Committee that is lead by Hon. Henry A. Waxman, Chairman

According to Dow Jones  ” Specifically, it provides vouchers worth $3,500 to $4,500 to consumers who trade in old cars for new ones that have an average fuel economy that is between two and 10 miles per gallon higher than those being trading in. It allows for rebates on around 1 million cars, costing taxpayers $4 billion for the program.

The amendment is part of a controversial and historic bill that aims to cut greenhouse gases by 80% over the next half-century. The Democratic leadership aims to pass the bill out of committee by the end of the week and hopes to get approval for the legislation in the full House in late June or early July.”

Read full Dow Jones story by Ian Tally

The Cash for Guzzlers bill  would give a needed boost the the ailing auto industry.  With recent franchises  being closed by Chrysler and GM, the bill could provide some needed relief for the battered auto industry.

Critics of the cash voucher bill claim that the measure does not go far enough to mandate cars with higher fuel efficiency. Some consumer critics contend that the bill should only be available for low income families.  Vocal opponents contend that the rich don’t need the cash incentives.

“Senators from both parties plan to introduce a cash-for-guzzlers bill this week that is identical to the legislation hashed out last week in the House, said Sen. Debbie Stabenow, D-Mich.

The bill would provide vouchers of up to $4,500 to people who trade in cars and trucks for new, more fuel-efficient vehicles assembled anywhere in the world.”   Read Full Story

As we have been reporting, this bill looks like it will be heading for President Obama’s desk.  This would be a huge boost for car dealers.

Honda & Ford Cars Leading the Way

From data collected on Cash For Guzzlers website, Honda Cars and Ford Cars are the top choice among US consumers looking for a fuel efficient cars. By far, these two brands have the lion share of the US consumers attention if this bill is passed.

Consumers have been submitting hundreds of price quotes per day on Cash For Guzzlers website and their interest is very high.  Honda car dealers and Ford dealers look like they will be the biggest beneficiary of this new bill.

Consumers looking for a local dealer that will support the voucher system and provide a competitive price quote, they can use the form on the left.  If the bill is passed, consumers will have their inquiries qualified by a local dealer and receive a price quote.

If this is correct, then in just weeks auto dealers will know if they will be getting a much needed boost from the US government, with tax payer dollars.  The bill has many advocates and opponents. Some US consumers, sharing their opinions on blogs are calling these types of programs Obama socialism.  The blogshere is a buzz with commentary on the bill which is also referred to as the “Cash for Guzzlers” program.

Cash For Clunkers to Generate 1 Million New Car Sales

According to the New York Times, some details on the proposed government voucher program are still not clear.  “The fact sheet did not say how much the government would commit for the program, which would run only for a year. Yet Congressional Democrats expect about 1 million older cars to be taken off the road, an ambitious number considering that fewer than 100,000 cars have been scrapped in California and Texas, where programs have been in place for several years. “ Read full blog post in the NYT Wheels Section.

Car Dealers Seeking Relief

In a random poll of car dealers, all are hoping that the bill would pass which would give them a much need shot in the arm.  With dealership experiencing drops in new cars sales 30-40% and used car sales outpacing new car sales, this stimulus bill is just what the doctor ordered. 

In the past 9 months, most car dealers have been selling more used cars than new cars.  The bill would be a way to move a large backlog of new car inventory that is sitting at US ports.  The question at hand is how long will taxpayers need to prop up the US auto industry.  Consumers are growing impatient with the number of bailout packages being offered.   Some Lawmakers, like Rep. Jay Inslee (D-Wash.),  are convinced that this bill will be delivering the right medicine for both the auto industry and the US consumer.

Cash For Clunker Bill: Share Your Opinion

Should local car dealers get a hand from the government with this type of stimulus bill?  Share you comments below.

Consumers who are driving cars that have a street value of $450 could get a credit with $4,500 which would represent a 1000% premium over book value. Their cars would be sent to the scrapyard  if they particpated in the “Cash for Guzzlers” program with the idea that these fuel “inefficient” cars would no longer be on the road.

How Many Consumers Will Particpate?

The number of people who are driving cars that have a value under $4,500 would also get paid a premium to trade in their car, just not a 1000% premium.  In any case, it is hard to know just how many people who own cars that are under or near the voucher credit will be prompted to take advantage of this offer.

There is also the issue of which cars qualify for the largest voucher credit based on what car you currently drive.  We have compiled a list of cars and their EPA estimated Miles per Gallon (MPG) statistics.  Here are some popular links and all car manufacturers will be posted shortly:

• BMW Cars
• Cadillac Cars
• Chevrolet Cars
• Ford Cars
• Honda Cars
• Lincon Cars
• Mercury Cars
• Nissan Cars
• Toyota Cars

Will The Bill Be Approved?

If the bill is approved, it will undoubtedly cause a spike in new car sales.  The Cash For Clunkers Bill  will also reduce the stock piles of cars that are filling US ports.   If you have been following the news, real estate for storing cars is scarce as consumer demand has fallen.

Is the Bill a Good Idea?

We would like to hear your feedback on the proposed legislation.  Car dealers across the country are crossing their fingers that the bill would have the same effect that it had in Germany.  The key question at had is whether consumers feel the worts is over and it is safe to take on new financial devt and purchase a new car.

Add your comments below.

CNN Video on Cash For Guzzlers

News Coverage on Cash For Guzzlers

Auto Week - May 5, 2009 – Democrats cut deal on cash-for-guzzlers measure

All Cars Electric – May 5, 2009 – Cash For Guzzlers Agreement Reached

Wall Street Journal – May 6, 2009 – Cash-for-Clunkers: Lower Your Expectations

Washington Post – May 6, 2009 – Cash-for-Clunkers Could Drive New Sales

To put a stop to sliding auto sales that were dragging down Germany’s stalwart automakers, the German government offered drivers a few thousand dollars to scrap their old cars and buy new ones. In February, while auto sales fell throughout Europe, German auto sales jumped 21 percent.

Now the United States is contemplating whether such a tactic can work here, where sales have plummeted to the lowest levels in more than two decades.   Read Full Story

New York Times, May 6, 2009 – Cash for Clunkers

President Obama’s rescue plan for the automotive industry has given the presidential seal of approval to a little-noticed movement in Congress to clear the roads of gas-guzzling clunkers and replace them with more fuel-efficient cars. It’s an excellent idea, with clear benefits for the environment and — Mr. Obama hopes — beleaguered carmakers.  But there’s a right and wrong way to do it.  Read Full Story
 

Detroit News May 6, 2009 – ‘Cash for guzzlers’ compromise praised  

“A compromise by House Democrats on “cash for guzzlers” legislation to boost auto sales won praise from Michigan lawmakers and the domestic carmakers Tuesday.

But, the legislation leaves out “buy-American” incentives Michigan officials had sought and could become entangled in the contentious debate over climate change legislation. Michigan lawmakers of both parties said they hoped the House would consider the measure separately from a climate-change bill, which may not come to a vote for months.”  Read full Cash Guzzler Story

The one-year plan crafted by members of the U.S. House of Representatives would offer vouchers worth up to $4,500 for owners to replace their less fuel efficient vehicles for models that get better gas mileage.

The goal of the “cash for clunkers” legislation is to sell 1 million vehicles.

“By stimulating consumer demand for new vehicles, this proposal will directly benefit domestic autoworkers and automotive manufacturers, which have arguably been hardest hit by the current economic downturn,” said Rep. John Dingell, a Michigan Democrat and staunch industry ally.

House Majority leader Steny Hoyer has embraced the proposal and said in an interview with Reuters in April that the measure would be acted upon quickly once proposed.

What Are Your Thoughts?

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