Cash For Clunkers Rolls On

Cash For Clunkers Eastern Shore Toyota The trade in program is on track for an additional $2 billion. Some local dealerships say the federal paperwork is a hassle.

by Chad Petri

Published: Fri, July 31, 2009 - 3:59 pm CST Last Updated: Fri, July 31, 2009 - 5:05 pm CST

Len Yonge is trying to finagle a better deal on his old truck since he heard “Cash for Clunkers” was running out of money.

“Figured I'd better come down and talk to them, not sure if I'm going to make the deal, depends on depends on if they make a good deal,” says the savvy shopper. Clunkers like the ones lining a small plot of land near Eastern Shore Toyota in Spanish Fort have been netting customers $3,500 to $4,500 on their trade-in. However, upstairs in the accounting office, it's been a struggle to get the paperwork to the federal government for reimbursement.

“It's taking anywhere from six to eight hours per voucher to get submitted, I know dealers that have been trying for days and have got two,” says Eastern Shore Toyota General Manager Terry Bell. The website Cars.gov apparently keeps crashing because it's overwhelmed with workers like these to process order after order.

“[There’s a] lot of confusion with the government on this program there, I think they weren't prepared for the amount of business coming their way,” says Bell. Some managers say they're worried about getting reimbursed from the government with so few orders processed at this time

“We've done the deals based on all the data in, delivered to use correctly, delivered the cars and now we're out the money,” says Bell. Bell his dealership has made more than 50 Cash for Clunkers deals--but only had a couple submitted. He says the program, while frustrating, has brought more people in the door.

“Because the trade's so much more than what we could get for them on the market if we tried to outright sell them,” says Linda Robertson. She’s a customer sitting with her husband. Both were looking to unload their two vehicles today, Friday, July 31, 2009. Officials aren’t exactly sure how much longer the program will last. Eastern Shore Toyota Owner Shawn Esfahani says he thinks the additional money may last for another two weeks. He says they’ll stop when the government tells them the program is over.

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carl Says:

Sat, Aug 01, 2009 at 2:43 pm

Don’t suspose the President will try to save all the cars from being repo-ed like he did on the houses do ya BamaBob? I bet the repo people are grinning ear to ear and getting their ducks in a row.Sho would like one of them 4 door trucks or a Ford Fusion Hybrid but I can’t quite justify the need yet. You get rid of your green car yet Bamabob? This 2002 SES still hasn’t had a drop of E85 in it yet and still running like a new one.

BamaBob Says:

Sat, Aug 01, 2009 at 2:23 pm

I have a hunch the repo business will be booming in a few months.

carl Says:

Sat, Aug 01, 2009 at 1:36 pm

There will be repos for sell and another group of financial businesses that want a bailout before it’s over.Speaking of bailouts,did everyone see where the big banks are going to pay out $156 BILLION in bonuses for 2009.Where’s that money tree they are using for all that money they’re using?I guess the car people figure if we’re all gonna go down the tubes we might as well ride in style.

rmseek1234 Says:

Sat, Aug 01, 2009 at 11:57 am

Exactly. My car has over 200,000 miles on it, and the transmission is starting to slip. But I have decided that even though I REALLY want a HUMMER,and could afford it, it makes more sense financially to fix mine if it needs fixing and keep on trucking. I would rather put a few thousand into fixing what I have,than to be stuck with another car payment for years. I would rather save that money,or spend it on necessities, than “wants.” I also wonder how much of a “deal” it REALLY is-seriously, $4500 off a car is only going to save you about $40/month in payments. And are the prices jacked up by the dealer?

Razorsharp Says:

Sat, Aug 01, 2009 at 11:48 am

My thoughts exactly, rmseek. There are a lot of people who will go broke trying to save money. The majority of these people actually can’t afford the cost of a new car, but are purchasing one anyway just to take advantage of a “deal”. It’s sad, but this is how a lot of people got into a bad situation to begin with…it’s like an addiction. My vehicle is almost 12 years old, but it is paid for and I wouldn’t trade or sell it for anything. People need to think before they leap and learn to be happy and take care of what they have. I agree wiith you that in the long run, when the missed payments, repos and bankruptcys start, this will have a negative effect on the economy.

rmseek1234 Says:

Sat, Aug 01, 2009 at 8:03 am

I wonder how this is going to effect the economy on down the road. First, is it a good idea to make a major purchase like this in this economy? How many cars will be repossessed in the next 6 months to a year? I can afford it,but I sure don’t want a car payment right now. How many REALLY can’t afford it? How will this effect salvage yards, when parts become limited for the do-it-your-self folks? How many cars are being purchased that are really out of an individuals price range? I heard Lexus was a hot car to buy. Will we bail out people when they default on these loans?