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.

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/

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.

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

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.

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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