Consumers have been reporting that calls into their local dealer have produced some interesting spin on the true opportunity that new car buyers may experience when the CARS program starts.  Trading in their old “clunker” for a new car may not be as cheap as they had calculated.

Consumers are concerned that manufacturers will be pulling their direct rebates and incentives off the market when the CARS program is in effect.  Many consumers were hoping that the combined incentives from the CARS program and the dealer would make buying a new car more affordable.

July Incentives

In the coming days we will know what manufacturer incentives are in place for July and August.  We do not believe that manufacturers will pull incentives. The spot check calls we made did not raise any red flags.

Automotive Executives should be prepared for a heaping pile of bad press if they revoked their rebates when the CARS program starts.   The CARS program has already created a polarized US public response. Automotive manufacturers do not need any more negative press when the industry had had its share of self imposed torture.

We are hoping that the reports from consumers are from misinformed car dealers or pranksters. 

Will Dealers Pull Incentives?

Here is what one consumer wrote in to say on www.cashforclunkersfacts.com SPEAK UP forum:

“This is a govt program people, what do you expect? I talked to a dealer (honda) and they flat out said the company incentives would be eliminated when this program is implemented. lol !  We also have a free market , for at least now, and I am free to shop other dealers who have loads of inventory of 09 models with the ‘10 models on the way. Do your homework and get invoice prices and deal hard, you have they money and control, they have aging inventory in a depreciating asset.”

Of course  this dealer does not represent or speak for the Honda Corporation.  The key point is that consumers are very concerned that they are getting the best deal with the CARS rebate credits. 

Manufacturers could get some good PR this month if they advertised their July incentives on cars that also qualify for the CARS program.

Car Dealers Are Concerned

Car dealers have their own concerns.  Many dealers that we have spoken to are not looking forward to the headaches that will start around July 23rd when the CARS program commences.  Automotive retailers have been warned not to make sales based on the CARS outline until the final rules are in place.

The compliance and verification measures that will be needed to be in place in just three weeks are not without cost.  Cash-flow issues are also a concern so local dealers are looking at the CARS program with bittersweet feelings. 

This CARS program will be interesting to follow and we’ll be there with you along the way.  Some experts are predicting that the funding will run out by the end of August.  Others have expressed that the CARS program heavily favors truck sales and not cars.  Let’s see what happens when the green light is flashed later this month.

Sharing Your Story

If you have been talking to a local dealer about their confirmed July incentives, send us an email or participate in the SPEAK UP forum.

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