How does this cash for clunkers thing work?

[X-Runner]

I am slightly upside down with my truck, I just checked on the online calculator and if I get a fuel efficient enough car I will get $4500 or if a small truck (which I need) $3500.

I owe almost $17,500. I can get right at $14,500 trade in. If I get a $13,000 car with $4500 cash for clunkers that means I would owe $11,500 for the new car correct?

[TheGodfather]

Yeah the $4,500 would go to your down payment. Sometimes you only get $3,500, but not sure in what circumstances.

You better hurry though, it ends on Monday.

[Echonova]

^^^ Not only that, but all Steve Rayman dealerships in Atlanta can canceled using the program yesterday because out of all the applications they have submitted they have only heard back on two and they were denied.

[man]

Yup, the dealers got shafted hardcore by the govt and so most of them stopped doing it.

[okra1981]

Why would you ever take $4500 for a car that's worth $14,500 on trade-in? Cash for Clunkers only makes since if the car is worth less than the money they are giving you for it, the $3500 or $4500, it doesn't mean that you won't owe on the car that you traded in. If you're upside down in your truck, you might as well hold onto it and get use out of it until you don't owe more than you can get out of it.
If you trade in your truck for Cash for Clunkers, you'll take $4500 for a truck that you owe $17,500 on. You'll get $4500 knocked off of a $13,000 car, meaning you'll owe $8500 on it and then the $17,500 you owe on you existing truck = $26,000 on a car that's only worth $13,000 brand new.

What I'm saying is, you can't get trade-in value and then get Cash for Clunkers too.

[okra1981]

I don't think that the dealers are getting shafted, I just think that they can't afford to carry the cost of the cars getting the Cash for Clunkers money while they wait on the funds from the government. They are giving out cars and still carrying the costs on their floor plans, it's like they still have the cars on their lots, yet people are running around devaluing them while they haven't been reimbursed for all of their profit margins yet.

[umairejaz]

I am slightly upside down with my truck, I just checked on the online calculator and if I get a fuel efficient enough car I will get $4500 or if a small truck (which I need) $3500.

I owe almost $17,500. I can get right at $14,500 trade in. If I get a $13,000 car with $4500 cash for clunkers that means I would owe $11,500 for the new car correct?


LOL

[Vteckidd]

I am slightly upside down with my truck, I just checked on the online calculator and if I get a fuel efficient enough car I will get $4500 or if a small truck (which I need) $3500.

I owe almost $17,500. I can get right at $14,500 trade in. If I get a $13,000 car with $4500 cash for clunkers that means I would owe $11,500 for the new car correct?
no

You owe $17500 on your truck. If they give you $14,500 then you still owe $3000 on your existing loan aka negative equity. They will roll that into your new loan.

Your truck in this scenario does NOT qualify for "cash for clunkers" since you owe money on it, and its greater than the $4500. They arent going to give you $14,500 then an additional $4500 on top of that.

So in the end, you would end up with a $13,000 that you would have to roll your $3000 in negative equity into aka $16,000 total cost for you to turn your truck in an get a new car (before TTL and fees).

Your best bet is to go buy some POS $500 V8, turn your truck in, and get $4500 for the V8 toward your "new fuel efficient car"

[SampaGuy]

My dad turned in his old mercedes and bought a new Mazda3 with the program about 2 weeks ago, we still don't have the title for it. The dealership will give it to us once they receive the $4500 from the government. If the government somehow does not reimburse them, we can either pay the $4500 ourselves and keep the car, or return it for a full refund, regardless of how many miles we are putting in it right now.

[1SICKLEX]

My dad turned in his old mercedes and bought a new Mazda3 with the program about 2 weeks ago, we still don't have the title for it. The dealership will give it to us once they receive the $4500 from the government. If the government somehow does not reimburse them, we can either pay the $4500 ourselves and keep the car, or return it for a full refund, regardless of how many miles we are putting in it right now.

That is illegal and unethical. Their beef is with the govt and the paperwork backlog. Once you turn the car in and it meets qualifications you are fine.

I do know CFC is a success but between the shady ass dealers and govt, what a mess for people.

[gtikid]

My dad turned in his old mercedes and bought a new Mazda3 with the program about 2 weeks ago, we still don't have the title for it. The dealership will give it to us once they receive the $4500 from the government. If the government somehow does not reimburse them, we can either pay the $4500 ourselves and keep the car, or return it for a full refund, regardless of how many miles we are putting in it right now.

That's illegal. You should check out the cash for clunkers website, it's in the FAQ :goodjob:

[Xtreme]

no

You owe $17500 on your truck. If they give you $14,500 then you still owe $3000 on your existing loan aka negative equity. They will roll that into your new loan.

Your truck in this scenario does NOT qualify for "cash for clunkers" since you owe money on it, and its greater than the $4500. They arent going to give you $14,500 then an additional $4500 on top of that.

So in the end, you would end up with a $13,000 that you would have to roll your $3000 in negative equity into aka $16,000 total cost for you to turn your truck in an get a new car (before TTL and fees).

Your best bet is to go buy some POS $500 V8, turn your truck in, and get $4500 for the V8 toward your "new fuel efficient car"

I thought you had to have the car in your name for a year? (Trade in). Probably not, I heard it from someone. I wish I still had my truck. :(

[speedminded]

My dad turned in his old mercedes and bought a new Mazda3 with the program about 2 weeks ago, we still don't have the title for it. The dealership will give it to us once they receive the $4500 from the government. If the government somehow does not reimburse them, we can either pay the $4500 ourselves and keep the car, or return it for a full refund, regardless of how many miles we are putting in it right now.Who is the car financed through or was it paid fully with cash? ONLY the creditor can hold the title. If he traded-in the Mercedes and wrote a check for the rest then your dad needs to call the dealership in the morning and say he's on the way to pick up the title. They can't hold the title for any other reason than if it was financed through them.

[1439/2000]

I thought you had to have the car in your name for a year? (Trade in). Probably not, I heard it from someone. I wish I still had my truck. :(


You do have to have it for over a year.

[Vteckidd]

You get my point haha

[MR2DR]

You have to own the registered and insured car for at least one year. You get 3500 or 4500 depending on how much mpg the new car gets compared to the clunker.

It's suppose to last until Oct. ish or until the funds run out.. whichever comes first.

[SampaGuy]

Maybe I should have explained it better. Its not illegal, and most dealers were requiring this. From CFC website:


A dealer has included in the purchase agreement a requirement that I return the new car or pay the dealer the amount of the CARS program credit if the CARS program credit application is rejected. Do I have to sign this in order to participate in the CARS Program?

NO. You are not required to sign an agreement like this to participate in the CARS Program. However, you may agree to such a term, but your choice to agree is between you and the dealer.


My parents paid fully, the dealer is holding on to a check and won't cash it until they have a response from the program. Technically the dealer still owns the car until it gets paid, its all in a contract. Have a temporary tag so gotta carry all the paperwork in the car.

The only party taking a risk here is the dealer, for if we decide to return the car we basically used it for a few weeks for free. We only have to pay if we damage something, not for regular wear and tear or mileage.

[SampaGuy]

It's suppose to last until Oct. ish or until the funds run out.. whichever comes first.

Tomorrow is the last day.

[MR2DR]

Tomorrow is the last day.

werd. I guess they changed it.
Good thing my buddy got his car last week.

[1SICKLEX]

Maybe I should have explained it better. Its not illegal, and most dealers were requiring this. From CFC website:




My parents paid fully, the dealer is holding on to a check and won't cash it until they have a response from the program. Technically the dealer still owns the car until it gets paid, its all in a contract. Have a temporary tag so gotta carry all the paperwork in the car.

The only party taking a risk here is the dealer, for if we decide to return the car we basically used it for a few weeks for free. We only have to pay if we damage something, not for regular wear and tear or mileage.

No its bullshit. Its just like when dealers "sell" people a car on the weekend based on what they think the bank will accept, you go home with the car then they call you back saying "hey the bank needs 2k more down".

Who the hell sells anything on "hold"? Either the car is sold/titled or not. I do understand the dealership wary of CFC due to the huge backlog of paperwork for them to get their money but that has NOTHING to do with the consumer.

[speedminded]

werd. I guess they changed it.
Good thing my buddy got his car last week.uh, the billion dollars was used up the first week of the program then 2 more billion $$$ was allocated for it and it's tapped out too...all in one month lol! Over 450,000 cars have been disposed of so far.

[Total_Blender]

I thought you had to have the car in your name for a year? (Trade in). Probably not, I heard it from someone. I wish I still had my truck. :(

You're right, you have to provide proof that the vehicle has been registered and insured for at least one year. So its not like you can go out and buy a $500 beater just to qualify for the trade-in. :goodjob:

Edit: the program also has a cap of $4500, meaning that if the vehicle's blue book value is more than $4500 they won't take it. So if you owe more than that on the vehicle in question its probably no dice.