It seems that the buzz on Cash for Clunkers has cooled down a little bit, but not at the car dealers. There are numerous unofficial reports of dealers running out of cars that will qualify for Car Allowance Rebate System. Dealers are asking for cars from the manufacturers, but they have reduced inventories so low because of the economy that now they don’t have any vehicles to sell.
The consumers are very frustrated because they want to buy a car but the extremely low inventories are forcing them to purchase cars that they would not otherwise buy. They are buying almost anything so they can participate in the Cash for Clunkers program before the budget runs out of money.
Now on the other hand car dealers are very nervous about the Cash for Clunkers program because they are still experiencing difficulties entering information in the dealer portal of the program. Many dealers say that they have not been able to get all their sales loaded in to the system because of problems with the process and website. From a few of the dealers that I talked to, they said that none of their sales have been approved by the government as of yet.
The Cash for Clunkers official website has posted a notice that they will accept future deliveries, for people that need to wait for a new car from the manufacturer. Sounds great, but it also sounds a little scary. Is it a mess in the making? The dealers are very reluctant to process a Car Allowance Rebate System credit for a car that might not be delivered or picked up for 3, 4 or 5 weeks.
Would you, if you were a Cash for Clunkers Car Dealer?
There was also a notice posted that they would not accept any car purchase transactions that were done prior to July 24, 2009. What happened to all those dealers that were accepting the Cash for Clunkers, clunkers before the 24th?…… The law was passed on July 1st, 2009………MESS IN THE MAKING!!!
A quote directly from the http://www.cars.gov/ website.
“We’ve heard that dealers are asking consumers to sign agreements with contingencies when they participate in the CARS program.
CONSUMERS ARE NOT REQUIRED TO SIGN CONTINGENCY AGREEMENTS TO PAY BACK THE DEALER SHOULD THE CARS CREDIT BE REJECTED.
We’ve also heard that dealers are asking consumers to keep their “clunker” until the deal is approved by NHTSA.
IF THE DEALER HAS THE NEW CAR IN STOCK, THE DEALER MUST ALLOW YOU TO TAKE POSSESSION OF THE NEW CAR BEFORE THE DEALER MAY SUBMIT THE CREDIT APPLICATION TO THE GOVERNMENT. PLEASE REPORT ANY DEALER TO NHTSA THAT DOES NOT ALLOW YOU TO TAKE POSSESSION OF A NEW CAR PURCHASED UNDER THE CARS PROGRAM. PLEASE CALL THE CARS HOTLINE AT (866)-CAR-7891.”
Did you read that carefully?
It says that consumers are not required to sign contingency agreements to pay back the dealer……The program does not require them to sign such an agreement, but the dealer probably will.
Cash for Clunkers or Mess in the Making….You Decide!
You can read all the latest at the Official Car Allowance Rebate System WWW.CARS.GOV