Cash For Clunkers..Did I Tell You?

[DDD]

I turned in the SUV and got a new car. It went smooth as silk and the $4500 really made it easy to swallow.

The news I want to share with any of you who may be considering that deal is this. The first dealer that I had chosen to work with was not the straight shooter he presented himself to be. In addition to the big bucks, I asked him "is there also scrap metal money that comes to me?" His answer was "the scrap on all the cars goes to us because we have a guy who comes regularly and takes the old cars away and gives us $100 per car".

Guess what? Two days after I bought from dealer number two a phone call came from the dealership saying "we will be mailing you a check for over $500' today for the scrap metal value of the SUV" "We apologize for not informing you up front but we weren't familiar with that part of the government program."

Can you believe that? I haven't read a thing about dealers "having" to pass scrap metal money along. I did read that "it might be possible to negotiate some scrap metal money". SO...if you're thinking of using the program, make sure you check on the scrap metal value. It was a lovely shock for us. DDD

 

[donna723]

Is there anything that says they HAVE to scrap the old cars that are traded in or could some of them be reselling them on a used car lot somewhere?

There is A LOT of money in scrap metal and a lot of those big older cars weigh a lot! Once in a while my mechanically-minded son and some of his friends will go to the auto auctions and buy big old junker cars that nobody wants for a few hundred dollars, some even less. They strip off any good parts and everything else that is decent (ask me how I got the CD player in my car!) and resell or reuse it, then take what's left and sell it for scrap metal. They always make way more off of it as scrap metal than what they paid for it.

 

[witzend]

So, what did you end up buying?

 

[DDD]

Yes, Donna, they are required to scrap the cars and you have to provide not only the title, proof that you have owned the vehicle for x years, but also that it is currently insured. The dealer notified the insurance co. and the State as well as fills in all the Federal paperwork. Alot of safeguards. To get the 4500 you have to buy a car that gets 10 or more mpg than the "clunker".

Witz, I was going to get the Hundai but....the Dealer either didn't know what he was talking about or was, in fact, a typical "car dealer". I ended up with a Toyota Corolla LE 2010 for $12,500. I wasn't 'excited' by any of the cars but I am happy with what I have.

Want to hear something funny? I did the deal by telephone (the dealer is 51 miles from here) and the salesman was sharp. The entire transaction took less than thirty minutes on the phone. I asked him "by the way, what color is the car?" He said "it is beige". I said "fine". My husband drove over to take
the draft and turn in the SUV. As promised he called me before signing. I asked "how does the car look?" "It looks really nice but it doesn't look beige to me." "What does it look like?" "I'm not sure but the paperwork says it is beige and I know you'll like it."

Remember...we don't live in a sophisticated part of Florida.

The car is NOT beige. The car is bisque! How funny is that! The dealership tags say beige. My husband said "What IS bisque?" I had to laugh. I know it is a seafood soup and a fine china color but this much I know...it is not beige! LOL DDD

 

[GoingNorth]

Congrats on the new baby. Congrats especially on buying a Toyota passenger car.

I've driven mostly Toyotas for thirty years (one or two Hondas in there).

Basically with Toyotas; if you follow your scheduled maintenances properly (hint, if you don't rack up 3K miles in 3 mos, then get the oil changed every 3 months and don't wait until you actually put on the 3K), these things last FOREVER.

I have never had to do a a major repair on a Toyota that had less than 150K on it. I have had to do some major maintenance, but you can't really complain on replacing a major gasket or similar at 200K

I've had three Corollas over the years. My high mileage champ was sold privately for 1.5K with 297K miles on it.

Mechanically it was still good, but the interior had seen better days and i got sick of springs sticking me in the butt.

My latest Toyota is a 2002 4-runner (SUV) that gets around 18K. I would go the program but I own my car outright and I don't want to make payments on a new one.

 

[donna723]

DDD, I hope you enjoy your new car! It sounds like a really good deal.

I wouldn't have been able to get in on that. Not that I don't drive a clunker, I do. But my little eight year old 'clunker" gets about 29 mpg! If nothing else, it has that going for it.

I am considering getting a sign in my back window that will light up ... for those impatient folks who get behind me going up a hill. It will say, "IT'S AN 8 YEAR OLD KIA! GIVE ME A BREAK!"

 

[DDD]

Thank you Donna. It's nice to see you Going North...seems like it has been quite awhile.

My husband and I have not had a lot of good breaks in our life but one thing we can say is that all our vehicles have given us outstanding service. husband drives a Camry and we all like driving that car. My Explorer has gone thru heaven and hades with me so it was like losing a family member, lol. I hope the Corolla takes me thru to the end of my driving days! DDD

 

[Star*]

Congratulations on your NEW, ECONO-FRIENDLY, vehicle!!!!!!

How does the Boxer like it?? I'm also thrilled you got a rebate.

 

[susiestar]

This sounds like something we should look into. I drive a (don't laugh at me here) 1987 Chrysler LeBaron. It was silver color in the 80s. Now it is just grey. Very little rust though.

before this summer it ran ok. for around town it was fine. But now it needs another battery and some other things. Here in OK air conditioning is not really an option, it is a requirement. At least when you are as heat sensitive as I am it is a necessity!

 

[witzend]

You got quite the deal, 3D! "Bisque" refers to the china dolls with the matte faces. They're called Bisque Head dolls. It's off-white kind of peachy...

 

[Andy]

O.K. When did this deal go down? NO ONE in Minnesota has received their claimed vehicle that we know of. We put a claim on one on Wednesday evening and can not get the vehicle until the government pays the dealer the Cash for Clunkers Rebate.

I hope your deal was before Wednesday and is a sign that the government is actually getting their act together.

I will give husband a head's up on the scrap $$$. That will be super great if we can get that also.

They have to scrap the cars because the purpose is to get the gas guzzlers off the road. They have to purchase new cars because the purpose is to allow auto makers to keep their jobs longer.

Our car dealers are hesitant in getting even more new vehicles because if the government does not come through with the Cash for Clunkers, customers like us will refuse the deal and they will end up with too many cars. So, their inventory is tied up until the government comes through with their end of the deal - not good for the dealers.

I so hope your success indicates the process is finaly starting to work for everyone.

We are trading in Diva's Jeep Grand Cherokee limited edition of over 180,000 miles, terrible gas mileage, and rising repair costs for a Dodge Caliber so we get not only the $4500 Cash for Clunkers but also the $4500 Dodge rebate giving us a $9,000 trade in value. We were told the deal should be approved by the end of next week though Diva is hoping it will not be until the 11th when she is back so she can go get it with husband.
She is afraid we will drive it to death before she returns but mainly she is having a hard time saying goodbye to her 1st owned vehicle.

 

[gcvmom]

Some auto recyclers have issues with this whole program.

http://www.msnbc.msn.com/id/32188133/


Frankly, I'm not so sure this program a good idea for the country as a whole. It doesn't really help the working poor, who probably still can't afford a payment on a new car even with the rebates. Also, I thought the taxpayers already gave the auto industry a boatload of money to bail them out... and now we're funding another sales incentive program on top of all that other money. 'Cuz you know who's ultimately paying for these rebates, right? Unless, of course, I've got my facts wrong. If so, someone please point me to the right data to change my mind.

 

[Andy]

Just another example how some over paid power heavy politician refuses to consider EVERY aspect of the plan before implementing it.

There should be a way that parts dealers can have those parts available to help fix the vehicles that owners can not afford to get rid of but need to continue to survive.

Maybe even figure out how the people who can not afford the program can even trade their even older car in for a "clunker" that was used in the program (even trade with no money gained or owed) - now that is recycling at its best!.

Some of these vehichles just need to be owned by someone who knows how to self work on them without paying big bucks to the repair guy. Diva has friends who have saved us lots of money with their ability to keep her vehicles running. Since we do not have a mechanical thumb, we need vehicles that don't break down so much.

How about allowing people with vehicles that do not run to trade in those vehicles for a clunker? It would get the non working vehicles off private property and give those people something that does get them to and from a job for however long that vehicles has left?

My guess is that all "clunkers" out there are not hopelessly at the end of their usefullness (though ours are!). Sure, the clunkers will be back on the road but they would be a financial blessing to their owners and the stimulus should be all about helping as many people as possible in whatever ways it takes.

 

[DDD]

Just thought of something I didn't include. Evidently you can use the clunker money for leasing as well as purchasing. I haven't heard of anyone doing it but I have read the choices and the dealer pointed out that I would have a new vehicle with monthly payments of under $150 IF I opted to lease. I think the program originated in Germany to address environmental concerns but I'm not positive. DDD

 

[DammitJanet]

I actually considered this. If I went to the dodge dealer I might be able to do a car for free! I have Billy's truck which has been continuously owned and insured for more than a year. It gets 12 miles a gallon so finding something that gets 10 miles more than that shouldnt be a problem. Now if we get 9k...that would be great. Now...my Ford Focus is still owed less on it that what it is worth so I have probably 3 or 4K to work with. So....if I could find a vehicle for around 11K...I get a free car!

What is bad though is we have a real clunker in the yard that we had insured...but just took the insurance off yesterday, an old Ford Escort. It doesnt qualify for the program because it gets 35 mpg. Where am I gonna get a car that gets 10 mpg more unless I go really expensive?

 

[Andy]

I actually considered this. If I went to the dodge dealer I might be able to do a car for free! I have Billy's truck which has been continuously owned and insured for more than a year. It gets 12 miles a gallon so finding something that gets 10 miles more than that shouldnt be a problem. Now if we get 9k...that would be great. Now...my Ford Focus is still owed less on it that what it is worth so I have probably 3 or 4K to work with. So....if I could find a vehicle for around 11K...I get a free car!

What is bad though is we have a real clunker in the yard that we had insured...but just took the insurance off yesterday, an old Ford Escort. It doesnt qualify for the program because it gets 35 mpg. Where am I gonna get a car that gets 10 mpg more unless I go really expensive?

Janet, It has to be a 2009/2010 vehicle (or a 2008 that has not had an owner yet). The lowest we found with Dodge that was part of the program was a $16,000 Avenger that was priced as the dealer's special. The regular low price Avengers are between $18,000 and $21,000 (same with the Caliber we decided on). Maybe cars are priced different around the country? I hope so - that would be super cool if you could get a new car out of this with no cash into it.

If you are serious, start looking this moment. There is no time to spare on this deal - get your claim in today if possible. We put our claim in Wednesday late afternoon and are afraid money will be gone before they get to us.

 

[KTMom91]

I heard on the news last night that because of the popularity of this program, it might be ending. Out of money already. I was hoping it would hang on till the end of the month at least so we could trade in Miss KT's mess of a Saturn and get something newer.

 

[DDD]

Our papers report that because of the popularity the program is getting two more billion to supplement the original billion (using funds already in the budget for energy, I think). It does take research to see if it is the right deal for you and your family. My SUV was beginning to cost me some bucks after twelve years of loyal service. For me...it was the right time and the right program. Good luck. DDD