Consumer who are locked out of the NHTSA Car Allowance Rebate System have a few choices on how to handle their clunker.  There is no immediate remedy for car owners looking to get quick cash for their cars if their don’t meet the requirements of the Cash for Clunkers bill.

The NHTSA who is administering the Cash for Clunkers bill does not have any power to change the rules created by Congress.

Consumers are reminded that other options exist:

1. Sign the Cash for Clunkers Petition – If additional funding is needed, which we predict, to operate the program until November 1st, consumers can join in a nationwide petition to change the rules that would apply to supplemental program funding. 

   The online petition at http://www.nocashforclunkers.com is requesting that Congress update the rules for the Cash for Clunkers to accommodate real-life mpg ratings. If additional monies are approved, consumers want those new monies open to a NET-10 rule.  Purchase a new car that is rated at 10 mpg better than your existing clunker, regardless of age and you get a $4,500 credit. See petition website for details.

2. Sell Your Car for Cash- If your clunker won’t qualify for the NHTSA Cars credit there are car buying services that will pay cash for any clunker regardless of its condition, mpg rating or age.  If your car is not in driveable condition, the cash for your car would be based on scrapyard prices.  For consumers who have cars that are still in drive-able condition, car buying service may be a way to get fast cash for your clunker.  You can use that cash towards a new or used car with better gas mileage.  List your car for sale.
3. Purchase a new car and shop for incentives- There are many car manufacturers that are offering significant cash incentives on 2008 and 2009 models.  Car sales are down and dealers are sitting on aging inventory which puts you in a strong position to negotiate a great deal.  Here are some starting point examples:

1. 2009 Hyundai Elantra – $2,000 factory incentive
2. 2009 Ford Focus – $2,500 factory incentives
3. 2008 Chevy Malibu – $2,750 factory incentives
4. 2009 Nissan Sentra – $2,000 factory incentives

Keep in mind that consumers should also ask for additional “dealer cash” to lower the price of the new car even more.  Any leftover 2008 models will be priced to move, if they exist in your area.

Used Car Sales

Consumers who still can not qualify for a new car loan should consider the value and savings that used cars may offer.  There are many late model used cars with considerably higher gas mileage available for purchase.  Some critics of the bill had advocated that the CARS credit should be applied to qualifying used car sales.  The reason was clear; the cars already were depreciated. 

However, the Cash for Clunkers bill was also designed to stimulate new car sales so using the CARS credit for used cars was not approved.

• National Clunker Memorial Gallery
• Links
• Archives