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What is Cash for Clunkers (C.A.R.S.) Doing for YOU?

$50 scrap value is all we gave our customers. We delivered all sold vehicles under the CARS program as told, the same day, or when we got it in on trade from another dealer. The junker picked up every clunker within 24 hours. What they make on the clunker is irrelevant to us and our customers. The $3500 or $4500 in CARS rebate was given to the customers by our dealership. We are still waiting for the Government to pay us about $300,000 which we should be paid with interest. The Obama administration lied about the payout to dealers and if this program ever comes back, one of the biggest Nissan dealers in America will say - sorry, we don't participate. The $300K we're owed is hurting. The customers need to thank the dealership if any thanks is possible from a trend in car buyers that think they're owed something. Just another reason we're selling more cars at full sticker, because that's what they are worth.
 
I bought a car under the cash for clunkers program on July 31, and am still waiting for delivery. I have been very understanding of the dealerships position but just was told my warranty started on July 31. I have now lost one month of coverage and there seems to be no end is sight. What are my options?
 
Kim, I was in your same position with not receiving my new car and still driving my clunker. I also finished my deal on July 31st. I emailed the GM of the dealership yesterday as my sales rep was steadfast in not giving me my vehicle. I mentioned to the GM the date my deal was done, as well as my rights under the program (having my car the day of the deal), and the dealerships violations under the program (not accepting my trade in). I also mentioned that the CARS hotline people and the NHTSA rep. I talked to both agreed that I should have my new car and asked me to report the dealership ; they also mentioned the dealership could face fines as a result. In any case, the GM emailed me back, and we set up a time to take delivery and hand over my trade-in..I should have the car later today. My advice - move up the ladder and talk to someone other than your sales rep.
 
To the post above that states “we’re selling more cars at full sticker, because that’s what they are worth.” While I appreciate that you would like that to be the case (and sometimes it may be), what an item is “worth” is dictated by what a buyer and seller agree on and transact. More often this is readily apparent in the used car market. I have an 06 Lotus Elise, pristine condition with about 12K miles, that I was considering selling. In talking to many other Lotus owners they seemed to believe that my car was “worth” around $36K (sticker was 51). THEN..when looking at comments on various forums, people who did not own one but were talking about buying one thought they were “worth” the high 20K’s. Of course, many could site an e-bay sale etc to support their argument. The reality is somewhere in between. Neither the Buyer nor Seller sets what an item is worth. The merely suggest their opinion by means of an offer to buy or sell. I suppose the best indicator of a new cars worth would be historical prices paid within a specific geography. What I have seen is that sticker price seems to have been often quite a bit higher than what the Market has decided in terms of “worth”. Now, if we are talking some F-Cars that sell over sticker… :)
 
@ Chris, you are 100% correct. The market does indeed determine the supply/demand equilibruim of goods offered for sale by sellers and prices buyers are willing to pay. I think what the OP was trying to point out that with the large amount of retail pricing support provided by the US government and depending on the manufacturer the large amount of support in the form of factory rebates, this supply/demand equilibrium is being reached without much discounting from the dealer, if any at all.
 
We are in a similar position to Steve and Kim- it has been 27 days since we signed for the new car. Our dealership is 3 hours away so it isn't convenient to run down there. We expected to take our clunker to sign for the new car, we haven't had a new car in 11 years so we have been socking away the cash for when we "had to" get a new car. This program was the incentive to get out the checkbook. You can have cash in hand if you save it over a long time. The salesperson told us to bring all the paperwork but not bring the clunker. I have since learned that we were supposed to leave the clunker but the dealership seems to have no interest in taking it. They also will not release the car to us unless we sign an agreement to return it if our voucher is not approved. This is a new contingency they have come up with as of August 13-about 2 weeks after we signed all the CARS program paperwork and agreed to buy the car. The advice they have from their lawyers is that if the customer refuses to sign, the dealer can choose not to deal. It seems like a threat. I am confused as to how that applies to a deal already entered into. We have a downpayment on the car, they didn't require full payment on our part. Per the Sales Manager our "invoice" shows pending approval. It has been 28 days. I spoke with the state dealership association, they "guessed" the dealer didn't want the clunker yet because of space issues but didn't really know. I also was told that the dealer's association for this state advises their dealers to not release the cars. I have spoken with the consumer arm of my state attorney general's office and they are confused as to what is right. They have read the CARS.gov site info and agree the dealer's stance is in conflict with what is stated about delivery of a car and taking possession of the clunker. There doesn't seem to be anyone or entity that has the interest in pursuing compliance by a dealer. I don't feel comfortable having this clunker with me- the title has been signed over. It's a 3 hour ride over a weekend (no government agency answering the phones on the weekend). If I show up with the clunker and they don't want to take it-it is a big deal. If I show up with a clunker and they still won't release the new car then I must drive up two cars if I have to insist on leaving the clunker behind. It's a mess.

Advice?
 
Ann,
I a so sorry for your situation. Our situation came to a head when my husband looked at me and said "When does our warranty start? I looked u our manufacturers Customer service number and after talking to the found out it had started on July 31. My husband visited the dealership and at first things did not go well. He asked about when we could get our car and was told to pay the 4500 and we could have it today. He told them that was against the guidelines. The man walked away from him. He was able to talk to our salesman and told him he wanted to speak to the sales manager and was taken right to him. Unbeknown to us the manufacture had called the dealership. A date and time was set up right then. The women I talked to from the manufacture calle dus this afternoon and let us know our car would be released I was able to tell her yes on Monday at 3:30. She is going to call us Tuesday to make sure there were not problems. Hope this helps.
 
Thanks Kim. I have been talking with the Sales Manager. He is the one that provided the info regarding signing an agreement to return the car or pay $4500 if the deal is not approved by the CARS program. Our clunker qualifies in every way so that aspect shouldn't be in question. I am thinking I will call the NHTSA on Monday, and also look to talk to the manufacturer. This dealership is part of some large "group" over several states-I don't know if you get more or no better attention if you go up that type of ladder. I guess I will talk to the AG office again on Monday. I have the same fear as some others that this might threaten the deal altogether...can a dealer cancel a deal that is already submitted when I want to comply but they are choosing not to?