Cash for Clunkers not ready yet

Officially, the federal CARS (Car Allowance Rebate System) rebate system kicked off yesterday. But don’t drag your clunker down to your local dealership just yet. According to the government’s official CARS Web site, the program won’t be up and running until around July 23, 30 days after President Obama signed the “Cash for Clunkers” act into law.

That’s because mechanisms for dealers to sign up for the program and to be reimbursed the rebate money may take a few weeks to implement. So, it may take a little bit longer before you can take advantage of the program. The CARS program will provide rebates of $3,500 or $4,500 to new-car buyers who trade in vehicles that get lower mileage for scrap. For more details see our earlier post. That hasn’t stopped some Web sites from springing up to lure consumers to register and give their names to dealerships as sales leads.

For the record, cars.gov is the only official cash-for-clunkers Web site. There will be no need for consumers to register for the program, and rebates will come directly from dealers, not in the form of physical vouchers.

For more information on the Cash for clunkers program, see our guide.

—Eric Evarts

Comments

[go out and buy a clunker]

geez !! go out pay 50.00 for a clunker and trade it in for thoasands off a new car. How many dealers will take advantage of giving this advice to customers.

[RedOscar]

Unfortunately, the rules of the program are so restrictive that my 1992 Acura Integra does not qualify. Just count your blessings if your trade-in meets the very narrow criteria for eligibility.

[Lin]

The problem with this is that if you have a vehicle that shows as a combined mpg greater than 18 your vehicle won't qualify....I have a 1998 ford taurus with over 209K miles, no air conditioning (in Texas a must w/ 107 heat index), and my engine light has been on for the past few days. I just started back to work and thought it would be a great deal but it turns out I can't qualify because the combined MPG is 20.

They really should have taken into consideration how many miles were on the car's that were over 10 years... not just MPG.. because I know that my car is NOT even getting the 18/city but more like 15. I really could have used this to help me get lower monthly payments so I could get back on my feet.

[Wm. Horrible program!]

This program is just Government propaganda. They want you to think they are giving you a great deal when, in reality, it's just false advertisement.

Read all the details!

You will get next to nothing for your vehicle because the dealer is required to scrap the vehicle by law. Sure, you'll get the $3500.00 - $4500.00 but that's all you'll get. If you have a vehicle built within the past few years it's probably worth much more than the few thousand dollars the government is willing to give you for it.

Read the fine print. I did!

The general population who is driving around in a fifteen year old gas guzzler probably can't afford a new vehicle even if the government gives them $10,000 for their clunker. New vehicles are grossly over priced and out of reach for the average working family. That is unless you finance the new vehicle for 84 months in order to get a payment of $300 per month. And by the time you pay it off it's worth zilch.

[Jen P]

This is the best program that has come out of Government that will help common people and not just Banks.

Read the Book "The Millionaire Next Door". There are millions of Americans with excellent credit history driving clunkers who will now take advantage of this program.

[Ann]

If GM can push this government bankruptcy past July 10th, the Treasury promised to pull out. Let hope GM can make it thru next week, then GM will be able to reorganize outside of the US GOVERNMENT. Hold on and do not settle so GM can have a real chance to survive. Once again, if GM can hold this illegal bankruptcy of the TREASURY off past July 10th, GM will have a chance, plus no government involvement.
(((((((()))))))) Our government should not care has fast, but it is done legally. All this do it now or else deceivtive.

[carconsumer]

It's not Cash for Clunkers, it's Cash for Guzzlers.

[slim]

Sounds like the mortgage program that allowed people to think the could afford the big new house. Many who drive clunkers can't afford a new car but will think they can or at least can't turn down the rebate.

[Mirak]

This sounds like a great program but I'm sure you will have to iron out some kinks that certain loop holes don't keep qualified people from taking advantage of this program.

[Bill]

I just purchased a 09 Cobalt because GM let me use all the cash I had built up on my GM card for one purchase. I was unlucky enough to have got the card after they put a limit on what could be used per vehicle. I would like to have traded one of the following cars in on it but their mpg was to high by one or two mpg. If the Gov. would have raised their rating to the 20 mpg I may have purchased 2 vehicles. I guess I will keep driving the old ones till they quit then put miles on the newer one. 1995 Oldsmobile Ninety-Eight avg. 20 mpg, 1994 Pontiac Grand Prix avg. 20 mpg, 1993 Oldsmobile Ninety-Eight avg. 20 mpg, 1989 Oldsmobile Ninety-Eight/Touring avg. 19mpg.

[Greg]

@go out and buy a clunker: You can't do that. The car getting traded in has to have had plates for the past year and owned by the person taking advantage of the C.A.R.S. program for the past year.

(By the way, I lose out because my '90 Olds Trofeo gets 19 mpg combined. I guess that's a blessing in disguise since I drive so little I really have no business owning a car at all.)

[Wm. Millionaire next door? You have to be kidding.]

That's a crock of crap. There's probably 10-15 millionaires in my zip code of 15,000 residents.

I live in the northeast where there were once booming steel mills, there is now Walmart.

I guess I you live in the silicon valley the millionaire next door theory works well...........

[Wesley James]

If the cash for clunkers program is as good as claimed, my 1986 Ford Tempo would qualify. The year only goes to 1992. Nice idea
but.......

[Barry Brown]

This program really stinks. It's the typical government giveaway that doesn't give. I sold a successful auto diagnostic and repair facility in N.J. about 8 years ago.( i owned it for 19 years) I bet that 95% of the 1984 and up vehicles get combined mileage over 19 mpg. I wasn't sure that the mileage is combined on this program,but if it is this plan will only help? poor families just as the mortgage programs a few years ago got those same people in trouble.

[karenc]

If your clunker doesn't qualify for a voucher you can donate it to charity and get a tax deduction instead.

[Barb]

This is such a no good program...the 2000 truck that I have not paid off and still have 7,000 more to pay is on the list. The 2000 minivan that I would not part with if my life depended on it is on the list. The 1991 Tempo that is a rolling train wreck that I would drop in a heart beat isn't on the list. What the heck is up with this???

[CJS]

I know CFC is not for everyone but it sure helped my 19 yr old daughter out. Her 1988 combined 15 mpg gas guzzler has a Blue book trade in value of $700. It is a real clunker. She was looking at used cars until this CFC program came out. With a low interest rate of 3.49% and hungry car dealers it was a buyers market for us.

However, we did our homework and looked at the cars that various car mags said would hold their value longer. The new car she's buying has a combine mpg rating of 28 well above the 10mpg needed to qualify for the $4,500. It's a car that according the many car mags will not only hold it's value but will give greater years of dependable service.

She got a car that she would have never been able to get without this CFC program. Instead of 18,737 she will pay 14,237 OTD (out the door) with payments around $240 a month. Again CFC may not work for everybody. However,I believe the critics who say CFC will not cause more NEW car sales are going to be surprised. I wouldn't be surprised if the CFC funds ran out in less than 60 days.

[Kenny]

I got a new Chevy Aveo for 7,400 by trading in my rusty 95 dodge caravan which I bought 2 years ago for $100. Of course , I think this is a great program. Those complaining come across as whiners. Lighten up! In life sometimes you win and sometimes you lose.

[Colin B]

I just left the dealership looking to buy a new ford. The problem is I have a 1997 Ford Expedition with 179k miles on it. Back in November 08, the car stopped running and I could not afford to fix until later. So I did not renew the insurance until Feb. 09 when I got the car running. I do not qualify for C.A.R.S. because of a 2 month gap in insurance. I understand the rules but, I believe that the spirit of the rules is still in effect. Not like I ran out and purchased a clunker to cash in.

[JC]

I purchased an 87 Chevy C10 Pickup a month ago.. before any talk of this cash for clunkers stuff. It has a V8 and a larger evironmental footprint than all Prius ever produced combined (lol).. I just like seeing the truck in my drive way.

I don't qualify, but If It did .. it would be tempting to send my dream truck off to be smashed just for the money.

The funny thing is I actually registed the truck. The two prior owners just passing the Open Title. A lot of these old trucks are just too expensive to be daily drivers. I put in $20 the other night and crossed town to show it off and when got home the tank was empty.

You know who these people are that actually have clunkers as daily drivers? I know who.. 80yo guys that use it to go to the grocery store once a week, and they ain't buying a new car with all them computers and new fangled dohickies.

[Jennifer]

I was excited all day thinking my car was a big enough piece of crap to qualify. My 1997 ponticrap grand prix with 191,000 miles is not excepted by the cars program because it gets 20 mpg, which I know it most def does not. Is there a way they can test it at the dealers? I just want to cry............

[JFK]

You had to know the CARS program was going to be a mess....the government had a wonderful idea but ....should have sent out approval vouchers to consumers that applied for the program. The consumer sends the goverment proof of type of car they own etc. The government would have MORE control of the money that is out....they would allow only 1 week before the consumer voucher expired.