Cash for Clunkers Program

[lumberjim]

If you buy a car from us, and it's a cash for clunkers deal, you will sign a letter like that. I'll tell you what it is that you're signing. Ours is a bit different in that it gives u s a lien on the car. You don't have to pay the $4500, but if you want to keep the car you do. We won't do anything to the trade until we're paid for the rebate. while you don't have to sign this letter....we don't HAVE to sell you a car.

not fair that the dealer get stuck either, ne?

[richlevy]

Originally Posted by lumberjim

If you buy a car from us, and it's a cash for clunkers deal, you will sign a letter like that. I'll tell you what it is that you're signing. Ours is a bit different in that it gives u s a lien on the car. You don't have to pay the $4500, but if you want to keep the car you do. We won't do anything to the trade until we're paid for the rebate. while you don't have to sign this letter....we don't HAVE to sell you a car.

not fair that the dealer get stuck either, ne?

So if I pay $30000 for the car and can't come up with the extra $4500, what happens? The car depreciated the moment it left the lot. Do I get my $30000 back or does the dealership try to give me $26000 back for my 'used' car?

[xoxoxoBruce]

The dealer is selling you the car, with Uncle Sam as your co-signer. If Sam doesn't come up with his share, take it up with him.

[spudcon]

Originally Posted by xoxoxoBruce

The dealer is selling you the car, with Uncle Sam as your co-signer. If Sam doesn't come up with his share, take it up with him.

Yeah, good luck with that.

[lumberjim]

Originally Posted by richlevy

So if I pay $30000 for the car and can't come up with the extra $4500, what happens? The car depreciated the moment it left the lot. Do I get my $30000 back or does the dealership try to give me $26000 back for my 'used' car?

We don't do any title work until your claim says 'Ready for Payment'

If the deal burps, the first thing we'll do is try to keep it together somehow. First, we look at the ACTUAL value of your clunker, and try to make a deal based on that number.

We've had 2 deals fail because the insurance had a small gap. In the first one, the car was actually worth $2600. we gave up the $600 profit we were making, and the customer agreed to pay the balance. The second deal unwound.

Unwinding a deal means giving the car back to the owner. we look over the new car, make sure there is no damage...get the manual and both sets of keys back.....and thats it. the car is still new.....can be sold as new.....much like a demonstrator.

I expect that we will be unwinding a few more deals. some of these cars may be put into demonstrator service. I imagine that there are dealers out there that will attempt to keep portions of customers' deposits as recompense for the miles/condition. we're just not that kind of store. we have a good reputation, and care about our honor.

I'm beginning to worry about the program ending abruptly again. as of tonight, we've done 108 of these deals, and have still only been paid for 7 of them. there are 16 deals 'ready for payment....about 60 'under review, and the rest are 1/2 way entered awaiting image upload and submission. (10 minutes per deal that we simply don't have because we're too busy delivering vehicles)


i'm starting to have weird dreams about this shit.

[classicman]

No one should get stuck, you're both right. But I find it disconcerting that a dealership would dump it all on the buyer and in this case what appears to be in a rather underhanded way. Why doesn't the paperwork say "We'll split it with you" instead of You Mr./Ms. Buyer are required to pay an extra $4500...?

[glatt]

But the buyer gets the car itself. Why should the dealer pay $4500 when they get nothing in return? The buyer gets a car in return.

[xoxoxoBruce]

Nay, nay, the dealer gets the pleasure of dealing with lovely people that hate them, don't trust them, and suspect they are all closet pedophiles.

[classicman]

Originally Posted by glatt

Why should the dealer pay $4500 when they get nothing in return?

So the dealer is just there to deliver a car free from profit for the manufacturer? Huh?

They got the business - they made a profit, one could assume. How much depends on a number of factors.

Who would buy something for say $30,000? Then find out the cost was actually $4500 or 15% more? That makes no sense either. Neither should be on the hook for the whole amount.

[spudcon]

Haven't read the entire thread, but has anyone considered what this is going to do to the used car market? Because they're crushing all the cars they're taking in, there will be fewer used cars on the market, and those without the credit or resources to buy a new car are out of luck again. Another big government program that screws the poor.

[monster]

Originally Posted by spudcon

Haven't read the entire thread, but has anyone considered .................

if you had read the entire thread, you'd know whether or not this had been considered *sigh*

[spudcon]

Originally Posted by monster

if you had read the entire thread, you'd know whether or not this had been considered *sigh*

OK, I've read the entire thread, some conversation about used cars, but nothing about the inflating of used car prices once $3 billion worth of used cars are crushed. Of course, I still haven't figured out where in the constitution it says they can take money from one group of people, and give that money to another group of people because they made stupid choices.

[Clodfobble]

As long as the customer has the option to return the car instead of forking over the extra $4500 (and getting their tradein clunker back before it's crushed,) I don't see the problem.

[jinx]

You can't return a new car - it wouldn't be new anymore. And new cars depreciate quickly.

[ZenGum]

Originally Posted by jinx

You can't return a new car - it wouldn't be new anymore. And new cars depreciate quickly.

Just ask Shawnee....