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Cash for Clunkers – Selling Cars and Misconceptions

Here we are a few days in to the new Cash for Clunkers government program also know as C.A.R.S (Car Allowance Rebate System) and I am hearing that the new program is driving considerable traffic into the new car dealer’s showrooms. I have heard some dealers say that is has had quite an impact on the floor traffic and even more importantly new car sales.

I have heard unofficially that it has increased sales anywhere from 20% to 45%. If your clunker can qualify for a $3500 to $4500 amount reduced from your new car that can save you about $110 a month on the average for a 60 month car loan. It is almost like found money. The Cash for Clunkers benefactors that I talked to were very happy with the program and said “there is finally a government program for the working man”.

Cash For Clunkers Off The Road

Cash For Clunkers Off The Road

The downside of the Cash for Clunkers program were the potential new car customers that had clunkers that did not meet the requirements of the program. I have talked to several people that had their clunkers miss out by only one mile per gallon, needless to say the were not very happy.

If you are considering taking advantage of the cash for Clunkers program you would be wise to spend a little time on the official government website at There have been many people that have had some misconceptions about the program and did not do any homework or research before heading out to see their new car dealer.

Some Common Misconceptions about Cash for Clunkers

A. I get $3500 or $4500 off my new car and the market value of my trade-in… False…You get the $3500 or $4500 if your car qualifies plus the actual scrap value of your car less $50.00 for processing.

B. I get the money if my car qualifies no matter what car I buy…False…You get the money if your clunker qualifies and your new car purchase qualifies.

C. My car is old so I know it qualifies…..False….There are certain requirements that must be met other than the age of the car.

D. My local dealer has told me that they are the local headquarters for the Cash for Clunkers program…False…All new car dealers that are registered and accepted are on an equal plane. There is not any dealer that is more qualified than any other new car dealer.

E. I was told that the program will be over when the money is used up and that will be soon…False….The Cash for Clunkers program is scheduled to run until November 1st, 2009 or when the budget of $1,000,000,000 (yes, one billion) is used up. The money is probably going fast, but I doubt it will be soon.

These are just some of the common unofficial misconceptions about Cash for Clunkers. You can get the facts by going the the official government website at This is the only website you should go to and rely on for the facts about the Cash for Clunkers program.

Official Cash for Clunkers Website:
Better Business Bureau:

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2 Responses to Cash for Clunkers – Selling Cars and Misconceptions

  1. doug August 22 at 11:02 pm #

    You got it wrong on how long the program will last. It will not make it out of August.

  2. Jim August 23 at 3:42 pm #

    You are correct, i just did a post that it is over Monday August 24th, 2009. Thanks for commenting.

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