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  Reply to Banovsky | Flag

  Banovsky on July 1, 2009

  Protecting against fraud

  From Cars.gov:

  NHTSA is aware that some organizations have already begun to convey incorrect information about how dealers and individuals can participate in the CARS program. The only official site providing information on this system is the agency’s website, www.cars.gov. Note that the suffix “.gov” indicates it is an official government site. Other sites may or may not have correct information, but none plays an official role in this program. We urge great caution in providing any information over the Internet to any website that purports to be related to this program. The CARS program will not request electronic submission of information from individual consumers.

  NHTSA is working to create a system that will provide payments only for eligible transactions under the CARS program. Under the law, NHTSA will make electronic funds transfers only to a registered dealer that has submitted the required proof of a completely eligible transaction. We will develop a registration system to identify licensed, franchised new vehicle dealers and to obtain the banking and tax identification information necessary for making secure electronic transfers. Only registered dealers will have access to the payment system.

  As noted above, at the time of the transaction at the dealer, the consumer who is trading in the “trade-in vehicle” will need to provide evidence of ownership of the vehicle and proof that the vehicle has been continuously registered and insured to the same person throughout the last 12 months. To prevent repeated use of the program by the same person, we anticipate that the consumer will need to provide evidence of identity, such as a driver’s license, and permit that information to become part of the documentation of the transaction.

  The dealer will have every reason to avoid entering into a transaction for which the dealer cannot be reimbursed under this program. The dealer will be expected to verify that the vehicle being traded in and the vehicle being purchased or leased are both eligible under the program. This will entail, with regard to the trade-in, making sure that the registration and insurance information is accurate and that the vehicle is in drivable condition. For both vehicles, the dealer will need to verify their combined fuel economy.

  With regard to the trade-in, NHTSA is considering various measures to ensure that the vehicle is never used again as an automobile in this or any other country. We intend to enforce the Act’s requirements strictly and vigorously and to conduct audits to detect any possible violations. See the question below on penalties and enforcement policies.

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  Reply to Banovsky | Flag

  Banovsky on July 2, 2009

  Hyundai accepting Cash for Clunkers trades early!

  Release:

  HYUNDAI TAKES FIRST TRADE-IN FOR THE GOVERNMENT'S "CAR ALLOWANCE REBATE SYSTEM"

  Participating Hyundai Dealers Now Taking Eligible Trades in the "Cash for Clunkers" Program

  FOUNTAIN VALLEY, Calif., July 2, 2009 – After months of debate and rounds of legislation, the wait has ended. Consumers can finally take advantage of the government's "Car Allowance Rebate System" (CARS), and Hyundai is leading the way. Katherine Michon of Arlington, Virginia was the first to trade-in an eligible clunker for a new Hyundai, replacing her 15 mile-per-gallon 1995 Ford Explorer with a 26 mile-per-gallon Hyundai Elantra Touring, at Alexandria Hyundai in Alexandria, Virginia.

  Hyundai buyers will receive the full rebate allocated under the CARS program (also known as "cash for clunkers") when an eligible trade-in is exchanged for a qualifying Hyundai model. Hyundai is the first automaker to extend the government incentive to consumers, accelerating its implementation by several weeks by backing dealerships with short-term cash advances as the government organizes the rollout of the program industry-wide.

  In May, Hyundai research showed that 11 percent of car buyers delayed their purchases until the CARS legislation was resolved. "We appreciate what Washington has done getting the program completed, but it's clear that the wait has left many potential car-buyers on the sidelines," said John Krafcik, president and CEO, Hyundai Motor America. "We thought it was imperative to get funding to our dealers so that they could implement the program right away and satisfy the demand they've been hearing from consumers."

  Under the CARS program, consumers qualify for a $4,500 rebate on the purchase or lease of new vehicles that achieve 10 miles per gallon more than a trade-in car or five miles per gallon or more than a trade-in light truck. New vehicles that achieve between 4 to 9 mpg more than a trade-in car, or 2 to 4 mpg more than a trade-in light truck qualify for a $3,500 incentive.

  Thirteen Hyundai models and engine combinations qualify for the CARS incentive program, which requires passenger cars achieve 22 mpg or more combined fuel economy, and light trucks achieve 18 mpg or better combined fuel economy.

  Accent Elantra Elantra Touring Entourage Sonata 2.4L Sonata 3.3L 2010 Genesis Coupe 2.0L Tiburon 2.0L Tucson 2.0L Tucson 2.7L Santa Fe 2.7L Santa Fe 3.3L Veracruz Five Hyundai models achieve 30 miles per gallon or more on the highway –Accent, Elantra, Elantra Touring, Genesis Coupe 2.0L and Sonata 2.4L. Hyundai ranks third in corporate average fuel economy according the U.S. Environmental Protection Agency, so consumers will realize further cost savings by stepping into a more fuel-efficient model than they currently drive.

  The CARS incentive program complements all existing special incentives and financing options from the manufacturer, including Hyundai Assurance, which allows consumers to return their vehicle if they unexpectedly lose their income, and Hyundai Assurance Gas Lock, which offers a year's worth of gas at a guaranteed price of $1.49 per gallon.

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  Reply to Banovsky | Flag

  Banovsky on July 6, 2009

  From http://www.reuters.com/article/earth2Tech/idUS216228605420090619:

  As Business Insider points out today, there’s also the problem that if a car is worth more than the voucher for which it qualifies, the driver would be better off just taking the regular trade-in value. Vouchers don’t come as an addition to trade-in values because cars brought in under the cash-for-clunkers program have to be scrapped, so their trade-in value is essentially zero.

  This raises questions about how effective the program will really be at taking the most polluting, inefficient vehicles out of the U.S. fleet, according to Business Insider’s Jay Yarrow:

  We find it to be a stretch to believe that anyone driving around in a car that’s worth less than $4,500 can suddenly–in the middle of Great Recession–afford a new car. There’s a reason they’re driving around in a clunker, and no $4,500 discount is really going to do much to change that.

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  Reply to Anonymous | Flag

  Anthony Tony Trapal on July 14, 2009

  My Honda dealership is accepting Cash for Clunkers trades now as well!! Please contact me for details!

  Anthony Trapal Internet Sales Manager 571-217-2477 ttrapal@ourismanhonda.dealerspace.com

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  Reply to Anonymous | Flag

  Anonymous on July 27, 2009

  My 1984 Cadillac DeVille is over 25 years old but meets the requrments, is the same as others that are newer yet mine is not elegable. Why is this ?

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  Reply to Ken | Flag

  Ken on July 28, 2009

  What is the method of destroying the traded in vehicles...and who verifies they are all actually being destroyed?

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  Reply to Baggy | Flag

  Baggy on July 28, 2009

  Here's some excerpts from the complete government rules at http://www.cars.gov/files/TheRule.pdf

  The dealer will destroy the engine by replacing the oil with an abrasive solution, and then run the engine to destroy all lubricated surfaces.

  The dealer then has to transfer the trade-in vehicle to a disposal facility that will crush or shred it so that it will never be returned to the road, although parts of the vehicle, other than the engine block and drive train (unless the drive train is sold in separate parts), may be sold.

  The disposal facility must also certify that it will not sell, lease, exchange, or otherwise dispose of the vehicle for use as an automobile in the United States or any other country, that the vehicle will be crushed or shredded onsite within six months after the date of its transfer from the dealer, and that the vehicle will not be transferred to another disposal facility prior to being crushed or shredded.

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  Reply to Banovsky | Flag

  Banovsky on July 28, 2009

  @anonymous Regarding the cut-off, it's simply too old a car to be traded in under the regulations.

  @Ken There is a set of procedures, but basically a dealership will: parting out the engine components, destroy the oil filter threads, drill a hole in the block, and run the engine without oil. Plus, add two quarts of sodium silicate, and run the engine until it dries up inside. That's just the motor. The rest of the vehicle will be crushed.

  @Baggy Thanks for the info!

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  Reply to MIZ. LALA | Flag

  MIZ. LALA on July 29, 2009

  do you have to have a drivers liscense to qualify

  • 

    Flag

    Baggy on July 29, 2009

    I cannot imagine a dealership selling a car to an unlicensed, uninsured driver.

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  Reply to Stergios | Flag

  Stergios on July 29, 2009

  Don't think Cash for Clunkers will last for ever. The federal government has budgeted a limited amount of graft for this program, totaling about $1 Billion, or roughly 250,000 clunkers. So if you want to take advantage of this program you need to start acting. The funds are expected to be depleted by November 2009.

  Keep an eye on this nifty government gauge showing the amount of funds left. If the gauge shows below half full, you should step on it!

  

  Fund Balance Remaining for CARS

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  Reply to Adam | Flag

  Adam on July 30, 2009

  How do you become a disposal site for the program, I work for a scrap yard thats interested.

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  Reply to Banovsky | Flag

  Banovsky on July 31, 2009

  According to the Detroit Free Press, the Cash for Clunkers (CARS) program will be suspended, as dealership sources have told Congress "that the plan would burn through its $950-million budget by midnight."

  Here are some updates from the article:

  • The decision to suspend the plan came after auto dealers warned the government today that it was in danger of losing track of how many trades had actually been made.
  • The program has proven wildly popular, with 22,782 trades certified by federal officials since Monda.y
  • The National Highway Traffic Safety Administration told dealers Wednesday that a vast majority of transactions submitted were being rejected for incomplete or illegible paperwork.
  • A survey of 2,000 dealers by the National Automobile Dealers Association, the results of which were obtained by the Detroit Free Press, found about 25,000 deals not yet approved by NHTSA, or about 13 trades per store.
  • auto dealers may have already arranged the sale of more than the 250,000 vehicles that federal officials expected the plan to generate.

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  Reply to Banovsky | Flag

  Banovsky on July 31, 2009

  According to Autoblog.com, "H.R. 3435 just passed the House of Representatives by a vote of 316 to 109. This means the Cash for Clunkers bill is halfway to getting an influx of $2 billion, pending a vote by the Senate next week."

  This means that the program should continue through this weekend.

  Stay tuned to our discussion for continuing updates.

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  Reply to Banovsky | Flag

  Banovsky on August 4, 2009

  Social media is such a cool thing that we're constantly evolving how we communicate. Take #carchat: the first few originated out of a spirited conversation. We applied that logic to a special discussion about Cash for Clunkers (aka CARS), and invited automobile manufacturers — as well as dealers — to chime in and let us know how the program is going.

  Cash for Clunkers is a hot topic here on vLane, and we want to keep you up-to-date on the latest news and developments.

  Since our recaps are ever-evolving, we've included it here on vLane as a discussion thread, and we feel it suits the nature of the discussion well — and you can see that we had a huge response! Enjoy!

  So? What are you waiting for? Click over to the recap.

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