Timing CARS (Cash for Clunkers)

[LTC8K6]

I guess the vehicles are not going to be destroyed, but parted out save for the engine block...

(B) SAVINGS PROVISION- Nothing in subparagraph (A)
may be construed to preclude a person who is responsible
for ensuring that the vehicle is crushed or shredded from-
-
(i) selling any parts of the disposed vehicle other
than the engine block and drive train (unless with
respect to the drive train, the transmission, drive
shaft, or rear end are sold as separate parts); or
(ii) retaining the proceeds from such sale.

 

[rh71]

Originally posted by: LTC8K6
I never paid anywhere near msrp for a new vehicle. A $4,500 credit can easily disapper in between msrp and invoice and make little difference to the buyer.

A $30k car would be about $27k invoice using a 10-11% markup which is already high. These are the numbers for a CTS: $34366 inv, $36560 msrp. Where again would this $4500 be hidden in addition to not paying MSRP?

Dealers can charge msrp under the program and make a bigger profit, so why wouldn't they?

Because they're not the only game in town. You're talking about worse case as if it WILL happen everywhere. Like you say, you never pay msrp... I'm sure that's regardless of any trade-in/rebate/etc. The one thing you seem to ignore is that this only benefits the dealer, by bringing in traffic, sales, etc. and costs them NOTHING. Why won't they shaft the customer? Because they won't make a sale if they're essentially telling the customer their $4500 credit is now only $2500 and they're obviously pocketing the rest, on top of whatever the invoice/holdback difference was.

 

[Falloutboy]

Originally posted by: rh71

Originally posted by: LTC8K6
I never paid anywhere near msrp for a new vehicle. A $4,500 credit can easily disapper in between msrp and invoice and make little difference to the buyer.

A $30k car would be about $27k invoice using a 10-11% markup which is already high. These are the numbers for a CTS: $34366 inv, $36560 msrp. Where again would this $4500 be hidden in addition to not paying MSRP?

Dealers can charge msrp under the program and make a bigger profit, so why wouldn't they?

Because they're not the only game in town. You're talking about worse case as if it WILL happen everywhere. Like you say, you never pay msrp... I'm sure that's regardless of any trade-in/rebate/etc. The one thing you seem to ignore is that this only benefits the dealer, by bringing in traffic, sales, etc. and costs them NOTHING. Why won't they shaft the customer? Because they won't make a sale if they're essentially telling the customer their $4500 credit is now only $2500 and they're obviously pocketing the rest, on top of whatever the invoice/holdback difference was.

because there are incentives typically for dealers to sell cars over and above the invoice. when they sell a car for invoice they are still typically making a nice chunk of change.

 

[LTC8K6]

Because they won't make a sale if they're essentially telling the customer their $4500 credit is now only $2500 and they're obviously pocketing the rest, on top of whatever the invoice/holdback difference was.

Prob 95% of customers have no clue about the pricing of cars or what happens with trade ins. How many of them are aware that they got nothing for their trade in? Or far less than it's value? Very few. How many are aware that the old loan that was "paid off" by the dealer, was actually just rolled into the new loan? How many completely understand the loan paperwork?

Most people buy by the monthly payment they can afford, and that's it, and they get robbed.

My guess would be that most people who come in for their CARS voucher haven't got a clue about the program at all. They probably don't qualify and many will be asking when they get their check...

Not to mention the people who will try to game the system...

 

[CPA]

Originally posted by: lurk3r
Dealers are already jacking up prices, damn thieves. And try to find any GM car, every single model you can build online is $22,000, Cobalt, Aura, Malibu, whatever. They're doing their best to make it impossible to do any comparisons.

What do you expect now that GM is Government Motors.

 

[rh71]

Originally posted by: LTC8K6

Because they won't make a sale if they're essentially telling the customer their $4500 credit is now only $2500 and they're obviously pocketing the rest, on top of whatever the invoice/holdback difference was.

Prob 95% of customers have no clue about the pricing of cars or what happens with trade ins. How many of them are aware that they got nothing for their trade in? Or far less than it's value? Very few. How many are aware that the old loan that was "paid off" by the dealer, was actually just rolled into the new loan? How many completely understand the loan paperwork?

Most people buy by the monthly payment they can afford, and that's it, and they get robbed.

My guess would be that most people who come in for their CARS voucher haven't got a clue about the program at all. They probably don't qualify and many will be asking when they get their check...

Not to mention the people who will try to game the system...

Trade-ins are easy to fool people with. We've established that. This is a flat credit off a negotiated, agreed-to price.

The promised $4500 + whatever you haggle off MSRP is your total savings... regardless it's going to be below MSRP & turn out below invoice (as far as the buyer is concerned) for most if not all qualifying vehicles. I still don't see where the dealer is going to be able to use this program to shaft anyone. Run numbers and show me.

 

[LTC8K6]

This is a flat credit off a negotiated, agreed-to price.

It is?

Maybe for you and me it would be...

We'll see.

 

[rh71]

I have another question that doesn't seem to be answered in the FAQs... what if I wanted to turn in my SUV clunker for a passenger vehicle? Must it be in the same category or can we do this?

 

[LTC8K6]

http://www.cars.gov/files/day-one.pdf

Yes, according to the charts at the end of this PDF. You can trade your SUV for a car.

 

[rh71]

^ thx, so many nice cars at 21mpg, just missing the 22mpg requirement. 🙁

 

[LTC8K6]

I'm hoping the program won't have enough takers, and they will relax the rules a bit to get more. I'd like to trade my old 95 Taurus 3.8L in, but it's rated 20 combined, so it just misses being eligible.

 

[funkymatt]

this is kinda crappy. I have a 97 civic i'd love to get rid of, but the EPA estimated MPG is 28mpg. :-/