Confusion greets clunkers program locally
Confused dealers and rushed customers in Walworth and Rock counties struggled with what to do Friday as news poured in that the federal government’s “Cash for Clunkers” program was running out of money and White House officials vowed to keep it going at least through the weekend.
On Friday, some Rock and Walworth county dealers were still making deals, mostly to customers afraid of missing out on the maximum $4,500 rebate on a new vehicle.
Others were being cautious, fearing Congress wouldn’t expand the program and leave local dealerships to make up for the promised reimbursement on cars already sold.
Shane Lott, a sales manager at Gordie Boucher Ford Lincoln Mercury, 2727 Old Humes Road, Janesville, said sales were still going at his dealership Friday, but he expected they would be suspended by midnight.
The latest information he received Friday afternoon was that Cash for Clunkers sales would only be available until Friday evening and were expected to pick up again Monday.
“They’ve changed it so many times, it’s going to be wait and see,” Lott said.
The House on Friday afternoon passed a $2 billion addition to the program, and the Senate is expected to vote early next week.
Bill Ederer of Kunes Country Chevrolet-Cadillac, 1231 E. Geneva St., Delavan, said his dealership was selling cars until late Thursday night. Some of his workers were filing papers until 3 a.m. Friday to ensure they would get approved before the $1 billion allotted for the program was gone, he said.
“One of my customers came in and said, ‘I really want this color interior, but I’ll take what you’ve got,’” Ederer said.
Customers Mark and Debbie Curcio of La Grange were not surprised to know funding was running out. On Friday, they were going through paperwork at Kunes Country after having traded their 1998 Ford Explorer for a new Ford Escape last week.
“The day we heard (about the program), we came in,” Mark Curcio said.
Scott Last, owner of Elkhorn Motors, 910 N. Wisconsin St., said he has been cautious with sales since the beginning of the program. Last said he finalizes deals but only delivers new vehicles when he gets approval notices from the government.
“It’s a great program,” he added. “But a lot of people come in, and their car doesn’t qualify.”
To be eligible for the program, a vehicle must get an average of 18 miles per gallon of gas or less. And the customer must have owned and kept the vehicle insured for at least a year.
The estimated mileage per gallon goes by the government’s record of what the car should get when new, not what the car gets at the time of trade-in. To verify mileage per gallon, dealers and customers can go to the government-run Web site, Fueleconomy.gov.
Entering information required by the federal government is quite the struggle for most dealers. The process has been lengthy because of the heavy traffic on the data-entry Web site. It doesn’t help that dealers have to electronically submit 11 different documents, scanned and attached separately, to prove the sale qualifies.
But they don’t mind. Most dealers said the program has boosted their sales and pumped new air into the tires of a struggling market.
“There’s people flying in,” Ederer said.
Ederer said he’s heard of larger dealers asking customers to sign documents stating they would have to return to the dealership and work out different deals if the government failed to honor the purchases.
For now, Ederer will stick to living the good life and cashing those federal checks.
“As of right now, if somebody walks in, there’s a deal,” he said Friday.
Aug 6, 2009 at 4:39 p.m.
Suggest removal
Don't know, couldn't tell you. Maybe there were more chevy aveos on dealers' lots than dodge calibers. There was definitely, as you say hannah, more rebate $ on calibers with 3500 plus the extra 1K you mentioned vs. only an aveo offering a 1K rebate. I don't doubt a caliber is equal to or even better than an aveo, just that 6K to 7K for a stripped aveo is pretty darn cheap even though most people want automatic, pwr. windows/locks, and A/C. Friends?
Aug 6, 2009 at 1:19 p.m.
Suggest removal
Hannah, by the way, the aveos are not ALL gone as you think. Several local chevy dealers in the immediate area have some left to pick from around the 11K or 10,800 price range, stripped off course, so maybe I do know more?
Aug 6, 2009 at 1:16 p.m.
Suggest removal
cookie-" I figured a 2009 chevy aveo stripped down with no A/C or power windows or locks, and 5-speed, I could get at for under 10K new minus 4500 clunker voucher = 5500 bucks for a new car is a good deal."
THIS IS THE PRICE OF A CALIBLER - I thinnk your figures are way off. and again if this is the case those are WAY gone so you WONT get one.
okay again you think you know it all. but it is SIMPLE math.
20170 get you a very nicely equipted caliber sxt automatic air power features
3500 rebate
1000 midwest bonus cash rebate together if you cannot add- seems you cannot IS 4500
4500 for clunker- okay again that is 9000
9000 MINUS 20170 is 11,170
now if you you do a se which is about 1000 less
that would be 10,170 automatic
Hannah, 5500 to 6500 out the door for an Chevy Aveo is not the price of a caliber at 10170 and yet you say it is SIMPLE math? I don't doubt your caliber pricing, but to say this is the price of caliber is incorrect?
Aug 6, 2009 at 7:27 a.m.
Suggest removal
Your dealership hannah must have sold those calibers 2-3K below invoice to make them selling for around 10-11K before 4500 cash for clunkers - sorry I was mistaken the dealership you work for did not make a profit margin? According to dodge.com, the base msrp of a 09' caliber is 16460 - 2500 rebate (even 3500 as you say was in July on some vehicles) is still either around 13-14K, not close to 11K. Sorry if I was mistaken?
Aug 6, 2009 at 6:55 a.m.
Suggest removal
Too bad, too sad - no more govt. motors backed calibers. Boo hoo. Don't worry hannah, you will still make your profit margin for the month thanks to Obama federally funding Chrysler and GM. I would be amazed if GM and Chrysler ever repay the govt. the billions loaned when and if they both see a profit.
Aug 4, 2009 at 5:26 p.m.
Suggest removal
cookie: that IS what I was asking hannah. One of her posts was a tad confusing re: clunker and guzzler credit. Either way...it is a good deal! And, you don't have to get a stripped out Aveo. From the GM line you can get any of the "G" line (just not the G8) and a Buick Enclave for sure. Not sure about what qualifies in the Chevrolet line-up because I wasn't interested. I would imagine the Malibu does, however. (And the Traverse since it is essentially the same as the Enclave and the Cobalt since it too is the same as the G5/G6).
Aug 4, 2009 at 10:46 a.m.
Suggest removal
momof5 - where do you get another 4500 for being an ugly guzzler on top of 4500 cash for clunkers (CARS) program? You only get 4500 (or 3500 depending on mpg) period for your clunker trade in along with your GMS and rebates. I figured a 2009 chevy aveo stripped down with no A/C or power windows or locks, and 5-speed, I could get at for under 10K new minus 4500 clunker voucher = 5500 bucks for a new car is a good deal. Although a cramped subcompact car is not my cup of tea going from a 1986 chevy caprice classic that is twice the size and comfort and safety with a real hood and real full size trunk. It will all be for nothing if the Senate does not approve the extra 2 billion by this Friday before they go on their summer vacation.
Aug 4, 2009 at 8:47 a.m.
Suggest removal
Actually, 916, it'd be the ugly ass Expedition. But what I really want, a G8, doesn't qualify. Neither does a Buick LaCrosse (the '10s a beautiful) but yet a Buick Enclave does qualify. Very puzzling how they have set their standards.
So-hannah-If I brought in my "guzzler"...I'd get 4500 for the "CARS" program, another 4500 for it being an "ugly ass" guzzler AND the manfuacturer's rebates AND GMS?? (If the new car qualified obviously). Crikeys! That's an awesome deal!
Aug 3, 2009 at 10:35 p.m.
Suggest removal
Hannah, remind me to not go to your dealership for a car sale. Oh yah, you sound like you sell Dodge/Chrysler/Jeep. Sorry, no sale - of the Big 3, Dodge/Chrysler/Jeep are not that good. Don't worry, you will still make your profit margin and holdback on each new vehicle sale for your dealership. It is not that good a deal if the dealers, depending on car of course, is inflating the purchase price closer to msrp (say 1500 bucks to 2K per 4 cylinder new car) over invoice price. This scenario would net out to about a 2,000 dollar trade in voucher for the customer assuming your clunker is worth about 500 bucks. The dealers are not out any money of the 4500 cash for clunkers and besides holdback profit, the sale of a 4 cylinder car netted the selling dealer about 1500 to 2K since you cannot seriously sell a lot of those 4 cylinder cars at invoice pricing like you use to. Even selling at invoice pricing, don't think I am that stupid to not know the dealers are not making a profit, otherwise, no dealer would be in business today.
Aug 3, 2009 at 8:12 p.m.
Suggest removal
hannah...it's a joke......there's no El Camino that's getting traded in:)
Aug 3, 2009 at 6:33 p.m.
Suggest removal
momof5.......Trade it in on anything they have left in stock! Anything has to be an upgrade when being compared to that ugly ass Yukon!!!!!
Just kidding:)
Aug 3, 2009 at 5:52 p.m.
Suggest removal
Ugh! Turns out the new car I want doesn't qualify...dang it all! :( :( Who'd have thought an El Camino wouldn't be on the list, 916WI! What a tragedy!
Aug 3, 2009 at 5:40 p.m.
Suggest removal
So, if I had a "clunker", I could trade it in and get the (up to) $4500 rebate, and the manufacturer's rebate and GMS?? So, really, I could potentially end up saving 10k or more?
Is this right, hannah?
Aug 3, 2009 at 4 p.m.
Suggest removal
Why does Boucher have a sign in front of their Chrysler dealership that says $3500 cash for clunker sale? I thought it was $4500.
Aug 3, 2009 at 1:17 p.m.
Suggest removal
It's fantastic for those who don't care driveable vehicles are going to be scrapped and they beneficiary is getting a new car at taxpayers expense while those who still can't afford a decent car drive crap.
Aug 3, 2009 at 12:36 p.m.
Suggest removal
I don't have a vehicle that fits the bill here, but I think this program is fantastic. The benefits are worth the cost (in my opinion).
Aug 3, 2009 at 12:19 p.m.
Suggest removal
This program has the wrong name. We have a car that is over 15 years old, rusty and has transmission issues, so we don't drive it out of town. Can't get a decent trade in for it...BUT it does get over 24 miles to the gallon. (It's cheaper to keep it to drive when gas is over $4/gal, than our newer car - which can't qualify as a clunker, either.) Why didn't they call this "Cash for Gas Guzzlers" instead of Clunkers? Just what is a Clunker anyway... a 2006 Ram Pickup with all the toys added?
Aug 3, 2009 at 12:10 p.m.
Suggest removal
Hannah......Sales of Toyota, Honda and Nissan--in that order--are showing massive increases compared to a month ago--close to 30%. GM is up close to 10% and Chrysler is still struggling. The imports are definitely the strongest movers.....
Aug 3, 2009 at 12:03 p.m.
Suggest removal
Debbie.....Toyota, Honda, Nissan, and BMW all have plants in this country which support tens of thousands of American families. Restricting it to just GM, Ford and Chrysler would be a slap in the face to the hard working Americans at those plants. Not to mentioned taxpayers have already given GM and Chrysler billions to keep them going.......
Aug 3, 2009 at 11:47 a.m.
Suggest removal
Aahhh, the good life for dealers and their sales quota. The more car sales per month, the more the dealer is alloted when ordering new vehicles from the mfgs. The bad life, it is going to increase for the time being purchase price since most dealers are not going to sell at invoice (supply and demand basics), but much closer to msrp and when the car loans are not getting paid and cars repossessed, there will probably be a surplus once again of used cars on the lots and people broke once again. Aaahhh, the good life - NOT! The shortage of new cars on dealers lots are already here and no one believed me a week ago. So, the average buyer who does not have a cash for clunker is going to have to pay much more in the short term for a new car - now that is fair isn't it?
Aug 3, 2009 at 11:40 a.m.
Suggest removal
And people want government to control their health care...
Aug 3, 2009 at 11:23 a.m.
Suggest removal
The second to the last sentence says it all...."For now, Ederer will stick to living the good life and cashing those federal checks." The program isn't about doing what is right.
Aug 3, 2009 at 10:31 a.m.
Suggest removal
I feel that this program should have only applied to vehicles made in the USA. The stimulus money was not intended to help the foreign car manufacturers profit. It was to help US citizens work.
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.