Hyundai begins giving cash for clunkers rebates

Hyundai has begun giving cash for clunkers rebates, even though the official Car Allowance Rebate System (CARS) doesn’t roll out until around the July 23, according to the official cars.gov Web site. (Read: "Cash for clunkers not ready yet.") Consumers shopping other brands who want to take advantage of the cash-for-clunkers trade-in deal from the government may be left in limbo for the next three weeks, unless other automakers step up with similar dealer-assistance programs.

The CARS bill that President Obama signed into law on June 24 says the program is good from July 1 to Nov 1. But the program doesn’t officially take effect for 30 days, or until about July 23. Those three weeks provide the National Highway Traffic Safety Administration (NHTSA) time to establish the specific methodology for the federal government to reimburse dealers, ensure the old cars that qualify are crushed, and prevent fraud.

So for most of July, consumers with clunkers they want to trade in are left waiting – unless they want to buy a Hyundai. On Monday Hyundai announced a new incentive program loaning dealerships the money to take clunkers in trade before the program officially gets rolling. The company says it has already sold taken its first “clunker” in trade, a 1995 Ford Explorer traded on a Hyundai Elantra Touring wagon.

Other brands could follow Hyundai’s lead, though the National Automobile Dealers Association (NADA) is recommending its members don’t start accepting clunkers in trade for rebates until NHTSA starts the program.

Before buying a Hyundai, or a model from any other brand, be sure to check the Consumer Reports ratings to ensure you are getting a good car and a good deal. See a complete list of Consumer Reports recommended models in our interactive new car selector, available to online subscribers.

Also read, "Cash for clunkers: Recommended cars that qualify for a voucher" and “Cash for clunkers: The best gas guzzlers to junk.” For more information on the Cash for clunkers program, see our guide.

 

—Eric Evarts

Comments

[karenc]

Hyundai is making a smart move.