Victim of the Cash for Cronkers Program

[FancyDiamond]

I needed a car immediately (within days) but had no gas guzzlers to trade. I do not mind about missing out on the freebie, but I found myself having to shell out more cash ($3000 more than those who bought 3 months ago). Now, the dealers are jacking up the price and are not responsive. After much pain and efforts, I finally bought a car Sunday, put a downpayment, and intended to pay the balance when I pick up the car this Friday. Guess what? When I tried to obtain the VIN number for auto insurance purpose, I found out the dealer sold my car! How shocking and frustrating!

In addition to being stuck in a bad deal, I anticipate my taxes will go up to pay for another one of the government''s giveaway and bailout programs.

Do you have a similar experience to share? Or are you benefiting from the program? If you are not in the market for a car, how do you feel about this CFC program?

 

[iheartscience]

I think it's a great program but I don't need to partake as my car isn't a clunker and I barely drive it anyway. My husband is thinking about it, but his clunker runs great so he's not sure he wants to get a new car. It's a bummer you can't partake, but that's just the way of the world sometimes. I don't really see how you're a victim, though. Dealers run different sales all the time, some better than others. Plus I think it's a little silly to blame the entire Cash For Clunkers program just because your particular dealer sold the car you put a down payment on.

ETA plus many dealers where I live are offering $4500 to people whether they have a clunker or not. Most (if not all) dealers have too much inventory right now and want to get rid of it before next year's models come out.

 

[D&T]

unless your car/clunker is less worth less/ and you don''t owe any money on it then the $4500 rebate is not worth it to do the clunker program, plus you have to buy brand new with a fuel efficiency of at least 28mph to get the full $4500 rebate otherwise it goes down in rebate value. I don''t agree with the program using tax dollars to subsidize and increase the national debt as a whole, but guess can''t do anything about it.

 

[radiantquest]

I have what I think is a gas hog, but it is 1 mpg over the limit so my car doesn''t qualify. Alot of the dealerships around me are running out of cars. I have friends in the business and they are telling me that they cannot keep the Ford Escapes on the lot. It is a small SUV and it is part of the program. People are buying them up. Sorry about your situation. Is there another car that you like? They must have thought that you werent serious to sell it out from under you. I don''t know.

 

[fleur-de-lis]

Date: 8/12/2009 3:32:35 PM
Author:FancyDiamond
I needed a car immediately (within days) but had no gas guzzlers to trade. I do not mind about missing out on the freebie, but I found myself having to shell out more cash ($3000 more than those who bought 3 months ago). Now, the dealers are jacking up the price and are not responsive. After much pain and efforts, I finally bought a car Sunday, put a downpayment, and intended to pay the balance when I pick up the car this Friday. Guess what? When I tried to obtain the VIN number for auto insurance purpose, I found out the dealer sold my car! How shocking and frustrating!


In addition to being stuck in a bad deal, I anticipate my taxes will go up to pay for another one of the government's giveaway and bailout programs.

Do you have a similar experience to share? Or are you benefiting from the program? If you are not in the market for a car, how do you feel about this CFC program?

Hi FancyDiamond, may I offer some lesser-known tips to help you in your situation?

1. There are MASSIVE deals to be had on new cars which are not eligible for the Cash for Clunkers program. If the model of car you are looking at has a V-6 option, for instance, not only have those not been moving but many manufacturers have $5000 to $6000 MFR to dealer incentives. So not only might you not be "stuck in a bad deal", but you might be able to find a very GOOD-- nay, excellent-- deal as well by being clever yourself.

2. As for your "taxes going up", a lesser-known part of the stimulus passed in February of this year allows the sales tax paid on new cars to be deducted from your 2009 taxes (the form due 4/15/10). Not only will you personally likely get a tax decrease, but most economists (on both sides of the political aisle) like this component part for it gives an incentive to those who are able to spend money on a new car a reason to do it when a significant component part of America's GDP (auto) needs it most-- and gets the money flowing due to capitalism/commerce rather than strict/direct government bailout.



As for your last Qs, we're in the market for a new car ourselves but are not participating in the Cash for Clunkers program. With a little bit of research, I'm pretty confident that we'll get a great deal as long as we choose a V-6 or V-8 car. As for the program itself, I look at how stagnant the auto industry had been for the first half of the year as well as the trickle-down effects (job losses) resulting from that decline and think it's actually a pretty good program from a policy/nation-building perspective.

BTW, you have my sympathies about the dealer selling the car out from underneath you. That stinks!

f-d-l

 

[musey]

I drive a 10-year-old jeep that gets 16mpg. I bought it (cash) from my grandmother when I graduated high school and it's served me well... it still runs just fine but with the amount of driving I have to do, it's a financial drain as well as an emotional liability (as an environmentalist). If it weren't for the CARS program I would not consider buying a car, much less a brand-new one (I really wish it weren't restricted to new cars so that I could get a used prius).

As it is, it has worked out to help me get into a more environmentally-friendly car, which is scheduled to arrive for me this weekend! It is not a financial thing, and getting the new car will mean an additional $100 or so per month in payments (good as I have excellent but poorly established credit) and insurance, after figuring in savings from decreased gas consumption. However, this is a move I wanted to make anyway - and the program is just making it possible for me to do it sooner rather than later.


As for dealers bumping their prices to make up for this - I have heard of this and from what I understand, in most (if not all) states it is not legal. You might want to report this activity.

 

[steph72276]

I''m just concerned with the program as a whole that people are going out to buy brand new cars just because they think they can get a great deal right now. I''m sure lots of these people going out getting the new cars are going to have bigger payments than they currently have....isn''t overspending why this county is in such a mess in the first place?

 

[D&T]

Date: 8/12/2009 5:26:25 PM
Author: steph72276
I''m just concerned with the program as a whole that people are going out to buy brand new cars just because they think they can get a great deal right now. I''m sure lots of these people going out getting the new cars are going to have bigger payments than they currently have....isn''t overspending why this county is in such a mess in the first place?

totally agree with you there Steph. So credits are being extended again, yet in the auto industry instead, but don''t cars depreciate right off the bat after you drive it off the lot

and I just see it right there, now you own something that you''re already under water with?

 

[musey]

Date: 8/12/2009 5:26:25 PM
Author: steph72276
I'm just concerned with the program as a whole that people are going out to buy brand new cars just because they think they can get a great deal right now. I'm sure lots of these people going out getting the new cars are going to have bigger payments than they currently have....isn't overspending why this county is in such a mess in the first place?

Yep... I think there's a great potential for issues in this area. People should be smart about it (though we know how that goes).

As I see it, It's a good incentive to make a purchase that you would have been able to make anyhow, but wouldn't necessarily have had enough motivation to go through with... not a way to help someone buy a car when they couldn't have afforded to otherwise.

Just my opinion.

 

[musey]

Date: 8/12/2009 4:34:30 PM
Author: fleur-de-lis

2. As for your ''taxes going up'', a lesser-known part of the stimulus passed in February of this year allows the sales tax paid on new cars to be deducted from your 2009 taxes (the form due 4/15/10). Not only will you personally likely get a tax decrease, but most economists (on both sides of the political aisle) like this component part for it gives an incentive to those who are able to spend money on a new car a reason to do it when a significant component part of America''s GDP (auto) needs it most-- and gets the money flowing due to capitalism/commerce rather than strict/direct government bailout.

I didn''t know that! Thank you for posting that info, I''ll have to look into it.

 

[steph72276]

Date: 8/12/2009 6:01:08 PM
Author: musey

Date: 8/12/2009 5:26:25 PM

Author: steph72276

I'm just concerned with the program as a whole that people are going out to buy brand new cars just because they think they can get a great deal right now. I'm sure lots of these people going out getting the new cars are going to have bigger payments than they currently have....isn't overspending why this county is in such a mess in the first place?

Yep... I think there's a great potential for issues in this area. People should be smart about it (though we know how that goes).


As I see it, It's a good incentive to make a purchase that you would have been able to make anyhow, but wouldn't necessarily have had enough motivation to go through with... not a way to help someone buy a car when they couldn't have afforded to otherwise.


Just my opinion.

Right, Musey I totally agree. If you were going to make a purchase anyway, this might help you to get a good deal. However, for some it might just be an incentive to dump their paid for car to buy a brand new one then didn't really need and add 20-30k of debt to their bottom line. Hopefully people have wised up a bit though and are smart about their purchases. I wish the CFC program did extend to used cars as well though.

 

[Dancing Fire]

Date: 8/12/2009 3:32:35 PM
Author:FancyDiamond
In addition to being stuck in a bad deal, I anticipate my taxes will go up to pay for another one of the government''s giveaway and bailout programs.

Do you have a similar experience to share? Or are you benefiting from the program? If you are not in the market for a car, how do you feel about this CFC program?

don''t like this program,but better then giving the auto Co. billions of our tax $$$''s.

btw; i''am waiting for the $500 "trade in your old FRIG program".

 

[Dancing Fire]

Date: 8/12/2009 5:26:25 PM
Author: steph72276
I''m just concerned with the program as a whole that people are going out to buy brand new cars just because they think they can get a great deal right now. I''m sure lots of these people going out getting the new cars are going to have bigger payments than they currently have....isn''t overspending why this county is in such a mess in the first place?

yup,agree ! this program could push consumers into more debt.

 

[radiantquest]

I agree. It seems to me that this program would cause people who really don''t have the money for a new car to go out a buy one because of the incentive. I almost got caught up in it. Most of the cars offered are about a $400/mth payment. If people have these clunkers it is prob. because they cannot afford the higher payment to begin with.

 

[musey]

Date: 8/12/2009 6:55:55 PM
Author: steph72276

Date: 8/12/2009 6:01:08 PM
Author: musey

Date: 8/12/2009 5:26:25 PM
Author: steph72276
I'm just concerned with the program as a whole that people are going out to buy brand new cars just because they think they can get a great deal right now. I'm sure lots of these people going out getting the new cars are going to have bigger payments than they currently have....isn't overspending why this county is in such a mess in the first place?

Yep... I think there's a great potential for issues in this area. People should be smart about it (though we know how that goes).

As I see it, It's a good incentive to make a purchase that you would have been able to make anyhow, but wouldn't necessarily have had enough motivation to go through with... not a way to help someone buy a car when they couldn't have afforded to otherwise.

Just my opinion.

Right, Musey I totally agree. If you were going to make a purchase anyway, this might help you to get a good deal. However, for some it might just be an incentive to dump their paid for car to buy a brand new one then didn't really need and add 20-30k of debt to their bottom line. Hopefully people have wised up a bit though and are smart about their purchases. I wish the CFC program did extend to used cars as well though.

Luckily there are some great cars that can fully qualify you for the rebate, but are quite inexpensive. I'm trading my 16mpg paid-for car for a brand-new 40ish mpg car that's under $16k before the rebate. Again, I won't come out ahead as far as mileage making up for the cost of a new car... but I'm willing to pay more to pollute less

At the same time... we all know that this isn't how the majority of people are using it. They're using it as an excuse to buy whatever car it is that they've had their eye on, regardless of fuel economy or whatever else.

 

[musey]

Date: 8/12/2009 7:30:14 PM
Author: radiantquest
I agree. It seems to me that this program would cause people who really don''t have the money for a new car to go out a buy one because of the incentive. I almost got caught up in it. Most of the cars offered are about a $400/mth payment. If people have these clunkers it is prob. because they cannot afford the higher payment to begin with.

Seriously?? Is there a list, somewhere?

 

[iheartscience]

Date: 8/12/2009 7:42:44 PM
Author: musey

Date: 8/12/2009 7:30:14 PM

Author: radiantquest

I agree. It seems to me that this program would cause people who really don''t have the money for a new car to go out a buy one because of the incentive. I almost got caught up in it. Most of the cars offered are about a $400/mth payment. If people have these clunkers it is prob. because they cannot afford the higher payment to begin with.

Seriously?? Is there a list, somewhere?

Yeah I''d love to see some data to back up that claim! From what I can recall, the most purchased car has been the Ford Focus, followed by the Toyota Corolla and the Toyota Camry. I don''t think any of those have payments of $400. But I should probably stay off this thread as it''s getting a bit political!

 

[neatfreak]

Date: 8/12/2009 9:04:20 PM
Author: thing2of2

Date: 8/12/2009 7:42:44 PM

Author: musey

Date: 8/12/2009 7:30:14 PM


Author: radiantquest


I agree. It seems to me that this program would cause people who really don''t have the money for a new car to go out a buy one because of the incentive. I almost got caught up in it. Most of the cars offered are about a $400/mth payment. If people have these clunkers it is prob. because they cannot afford the higher payment to begin with.

Seriously?? Is there a list, somewhere?

Yeah I''d love to see some data to back up that claim! From what I can recall, the most purchased car has been the Ford Focus, followed by the Toyota Corolla and the Toyota Camry. I don''t think any of those have payments of $400. But I should probably stay off this thread as it''s getting a bit political!

Yeah...I don''t think that''s right either.

 

[ksinger]

Well, assuming the Camry is the highest of the 3 - including the Focus and the Corolla, I can tell you that the Camry IS about $400. (I have a Camry)

(I hope that''s not too "political")

As far as everyone all aghast at the thought of banks lending money, it IS what makes the economy MOVE. It''s been frozen up, from people hoarding money AND unwilling banks. The paradox of thrift dontcha know. This program gets some of those TARP funds that the banks have been sitting on (since there were, stupidly, no stipulations on what the banks had to DO with the money) moving again, and hopefully creates some good loans on the books of banks to offset the crap that is still there. I suspect they are NOT making loans with no income requirements anymore, so one would have reason to hope that the loans made are not going to default. Of course, continuing job loss may queer that angle, but we shall see...

 

[FancyDiamond]

Thank you very much, fleur-de-lis, for telling us about the tax deduction for car purchase. Every bit helps.

By the way, I live in the east coast, and am buying a car in LA for my daughter who will be relocating there for a new job. My daughter lived in NYC , so she never had the need for a car. Anyway, my brother and sister-in-law, who shopped the car for us at the LA Toyota dealership showroom, complained to the store manager about our situation. Under pressure, the manager traded with another dealer to get us a similar car, and finally managed to provide us with the VIN number for our auto insurance. For now, we think we got this hurdle out of the way. Hopefully, there will be no major surprises when my daughter picks up her car this Friday.

I wish we had more time to shop for a car (had less than a week to get a car). I also wish that I knew a V-6 car was not eligible for CFC program, because I prefer something that has more power. One thing I can say is that car buying is crazy out there, especially in LA. My daughter and I viisited our local Honda dealer this past Saturday. The place was packed, but there were still some 2009 cars available. In the LA Toyota dealership sites, all the 2009 models are completely sold out, and there aren''t many 2010 models around, only white and some light silver. If you do not believe me, go to the forum at edmunds.com. You will also learn that the price shot up by $3000 in just 3 months and that now is the height of the CFC program.

 

[VRBeauty]

In the case of my carpool buddy, a very "by the numbers" guy, the CARS program encouraged him to get into a new, more efficient car sooner than he otherwise would have, and ensured that his old car would be junked, not passed on to another driver. In his case the program is working exactly the way it was intended to work. The dealership did try to jack up the price of the car, by the way, but he had done his homework and stood firm, and they backed down.

 

[atroop711]

Date: 8/12/2009 7:30:14 PM
Author: radiantquest
I agree. It seems to me that this program would cause people who really don''t have the money for a new car to go out a buy one because of the incentive. I almost got caught up in it. Most of the cars offered are about a $400/mth payment. If people have these clunkers it is prob. because they cannot afford the higher payment to begin with.

many of the ppl with clunkers that I know are just too cheap to buy a new car..they will drive it until it dies (mind you 4 ppl I know like this have very deep pockets)

 

[Amethyste]

I am glad I got my car before this program... And I fully intend to drive my Smart car until it dies!