Waiting for the clunker approval

I cannot even imagine not rolling the new cars to clunker clients. I mean, that's 2x as many cars to store and deal with. And, since you have to completely fry the clunker's motor to qualify, and show salvage documents, that means your car's fried, gone... and you have no new car to show for this. And, no set accepted deal. The liability to a dealership for destroying your old car is huge. I can't fathom doing it this way. Ruining someone's "trade" and not consummating their deal.

What are you driving in the meantime?

 

I thought that the clunker no longer had to be disabled before approval was given. That's my impression from reading news items on the issue.

 

That is correct, they changed the rules after the first week. I got approval in 3 days.

 

Mine was approved in less than 2 hours.

 

I think it was about 5.0679 minutes.

They just wanted to see the insurance and registration cards going back 1 year and "clear" title.

When I walked in, the first thing the sales guy asked was "do you have the papers?"... they wouldnt even talk to me unless I had the papers... turns out I didnt so went home and got them. (I assumed they checked w/ the DMV or something to validate the reg and ins.)

I drove the prius home about 3 hours later... the lady taking customers money was busy with a number of customers.

If the dealer is holding back a deal based on getting the govt CFC funding approved then I would go somewhere else.

jeff

 

There was a story on the radio news this morning of a Honda dealer here in Pittsburgh who is not releasing any cars under the clunkers program until they get the money from the government. They had a guys clunker and his new Honda holding both hostage until the government comes through with the money. Yep that Honda dealer doesn't trust the Government that much.

Local story with video Local 'Cash For Clunkers' Customers Waiting For Their Ride - News Story - WPXI Pittsburgh

 

I think the bigger dealerships are letting the New car leave the lots when the deal is consummated. There certainly is some risk for the dealer. But not to let the buyer take the car is to potentially lose a sale to a competitor. I bought from one dealer on July 25th and did not want to wait till the 27th with a different dealer.

What is the more interesting question is if the paperwork with the government is somehow mishandled by the dealer, will they come to the customer to make it up?

As a buyer who takes the car off the lot, we too are trusting the that dealer is competent enough to get there reimbursement from Uncle Sam. Really this the more frightful possibility. How do we, the customers, know that the dealer did all they could if the CFC falls through with the government? There is a thread here where the dealer asked someone for the car back, after they found the Camry that was dumped was no longer eligible.

From local news, a dealer Lens Stoler says:

"We've done probably about 300 deals through the clunker program and we haven't been paid on one yet from the federal government, but that's okay. We still have cars in stock and as long as we can make deals for customers we're happy to do it."
http://www.abc2news.com/news/local/story/Cash-For-Clunkers-Cools-As-Hottest-New-Cars-Vanish/vKbGoZWWbkC1PUbftd9BAw.cspx

300! and no money? That's around 1.2 million for one dealer.

Really I am just hoping for the best

Dianne: has your dealer received funds from Uncle Sam?

 

My salesrep just called. He let us know we're one of 4 deals that they've been paid for by Uncle Sam. We did ours on 7/27. They have 100+ sitting in the queue waiting for payment and/or approval.

 

I think your dealer is playing some game. Last week dealers were not taking the risk of releasing the new car unless the program was funded by the Senate. But since Friday, the program is up and running and you should be able to get the car the same day. I got my Prius on Saturday, Aug 8. Walked into the dealership at ~10:30am on Sat , went thru all the clunker paperwork, selected the car, did the financing, and drove off with my new car at 2:30pm.

 

I'm in the same boat as you, although my paperwork was only submitted one week ago. My dealer is holding onto the car until my clunker is approved. I heard that the turnaround time for approval is 2-2.5 weeks at this point. At least my dealer isn't making me wait until the payment is received!

 

Same boat here! Paid in full for my Red Prius II on 7/30 which was fresh off the delivery truck and it is still sitting there. Dealer called today & claims only 5 CFC in NE have actually been paid (by the govt.) which I find hard to believe. No one has taken a car home from their dealer since the first week of the program. He claims the lot is jammed with sold cars and turned in clunkers waiting for govt approval. This is nuts! I have had issues with the whole process ther. My salesmen who I have been trying to contact for days "is no longer with them" Go figure!

 

CARS.GOV site update

YOU ASKED. WE LISTENED

We’ve heard that dealers are asking consumers to sign agreements with contingencies when they participate in the CARS program.
CONSUMERS SHOULD NOT SIGN CONTINGENCY AGREEMENTS TO PAY BACK THE DEALER SHOULD THE CARS CREDIT BE REJECTED.
We’ve also heard that dealers are asking consumers are asking consumers to keep their “clunker†until the deal is approved by NHTSA.
IF THE DEALER HAS THE NEW CAR IN STOCK, THE DEALER MUST ALLOW YOU TO TAKE POSSESSION OF THE NEW CAR BEFORE THE DEALER MAY SUBMIT THE CREDIT APPLICATION TO THE GOVERNMENT. PLEASE REPORT ANY DEALER TO NHTSA THAT DOES NOT ALLOW YOU TO TAKE POSSESSION OF A NEW CAR PURCHASED UNDER THE CARS PROGRAM. PLEASE CALL THE CARS HOTLINE AT (866) CAR-7861.
To find out more about dealer contingencies click here.

Important Information on new MPG Ratings:

In conjunction with the CARS final rule, EPA updated fuel economy data on fueleconomy.gov on July 24th. The changes affected the eligibility of certain vehicles under the CARS program.
Of the 30,000 vehicle model types spanning 25 years, 78 cars no longer qualify, but 86 new vehicles are now eligible.
NHTSA will process transactions in accordance with the data on fueleconomy.gov. The 78 vehicle model types that were eligible under EPA's mileage criteria until EPA's revisions were issued on July 24th will continue to be considered as eligible for transactions that occurred on or before July 24th.
The 86 model types that became eligible on July 24th will be treated as eligible if they are part of sale or lease that occurred on or after July 24th.
Click here to view the list of eligible cars
Click here to view the list of ineligible cars
To search all vehicles, click the MPG Ratings tab at the top of the page


What is the Car Allowance Rebate System?

The CAR Allowance Rebate System (CARS) is a $3 billion government program that helps consumers buy or lease a more environmentally friendly vehicle from a participating dealer when they trade in a less fuel-efficient car or truck. The program is designed to energize the economy; boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation's roadways.
Consumers will be able to take advantage of this program and receive a $3,500 or $4,500 discount from the car dealer when they trade in their old vehicle and purchase or lease a new one. Consumers you do not need to register anywhere or at anytime for this program. However, to find out eligibility requirements click here.
What is NHTSA doing to guard against fraud? Click here for more information. Allegations of fraud may be reported by calling our toll-free 24-hour hotline at 1-800-424-9071.
Check back to this site often for updates and further information.


Consumer Bill of Rights

• Qualified consumers may participate in the CARS Program between July 1, 2009 and November 1, 2009 or when authorized funds are no longer available.
• Qualified consumers will receive a credit of $3,500 or $4,500 for an eligible trade-in toward the purchase of lease of an approved vehicle under CARS Program.
• Qualified consumers will receive the $3,500 or $4,500 credit at the time the purchase their new vehicle.
• Dealers must provide consumers with any other advertised rebates or discounts in addition to the credit they receive through the CARS Program.
• Consumers should expect to conduct their deals at their dealership of choice, not on the Internet.
• Consumers should expect the dealers to provide their best estimate of the scrap value for their eligible trade-in vehicle. Dealers are allowed to deduct $50 from this value for their administrative costs.
• Consumers should expect that all information collected through the CARS Program will be kept confidential. Social Security numbers are not required for a CARS transaction.

Download a printable PDF
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Important Things to Know

• To participate in the CARS program, you do not have to sign an agreement to pay back the dealer the CARS credit amount if the deal is rejected.
• You are required to leave your trade-in vehicle at the dealership and sign over the title to the trade-in vehicle at the time of the deal.
• Your vehicle must be less than 25 years old on the trade-in date
• Only purchase or lease of new vehicles qualify.
• Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements).
• Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in.
• You don't need a voucher, dealers will apply a credit at purchase.
• Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
• The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.

Check this site frequently for the most recent updates from the government.

 

Wow, that's VERY INTERESTING! I just tried to call my salesperson and business manager, but they're not in yet. I'm shooting them an email with the link and asking them to call me ASAP. They're holding my new Prius hostage! Thanks for the info, Dianne!