This coming Friday, July 24th the NHTSA will launch its version of Cash for Cars empowered by the Cash for Clunkers bill signed last month by the President. The final “rules” from NHTSA lawyers will be published after careful review of the law by this Friday.  

Consumers have been advised by the NHTSA that they can head to a local new car dealer and trade in a qualifying clunker starting Friday.

The term “qualifying clunker” is the key phrase to remember since many consumer vehicles that look or drive like a clunker will not qualify. We created a Cash for Clunkers Infographic to make the qualification process easier to understand which drew over 25,000 views in one day. 

Keep in mind that once the final rules are published, anyone having an open question about the CARS program should receive clarification.  Some of those gray areas include:

• Can a clunker with a lien be traded in?
• Can a husband & wife pass a titled clunker to each other or there children?
• Can non US citizens that are legally registered to work participate?
• How is the cash received by dealers from the scrapyard distributed to the consumer?

 The NHTSA consumer hotline is still the best place to get a final answer AFTER the rules are published.  That number is: 866-CAR-7891

CARS Advertising Campaigns

Consumers are also warned about strong advertising messages that imply that every “clunker” qualifies.   The only place to qualify your car is the NHTSA website at http://www.cars.gov.  If your car qualifies you should shop around for the best deals since many manufacturer rebate programs can be combined with a CARS credit.  View our growing list of car incentives.

In the coming weeks direct mail pieces will be arriving that may include the CARS or NHTSA logo.  Consumers are advised that these mail pieces are from local car dealers and not the NHTSA.  We are not aware of any consumer direct mailers that the NHTSA will be doing.  The NHTSA has asked car dealers to submit any marketing materials that use the green CARS logo to the NHTSA before being used. 

If you would like to simplify the process you can also complete the form on the left and a local dealer will call you about trading in your qualifying clunker.

Consumers Are Wary But Dealers Can Shine

Mailers, radio and TV are a great way to promote this program as long as the messages clearly educate consumers about the program.  Consumers have written to us saying that they are wary of dealers pulling incentives when they shop for a new car.  

It is our belief that most car dealers will do all they can to give consumers the full package of rebates and incentives  from the factory and the NHTSA.  In fact, this program will allow the best car dealers from around the country to shine. They will shine because of the opportunity for good public relations and market share growth. 

Factory Incentives Sweeten CARS Program

For example, a 2009 Kia Spectra that has an starting MSRP of $13,550 can be reduce 59% if a consumer qualifies for the CARS $4,500 rebate since Kia is also also offering a $3,500 rebate.  That’s a total of $8,000 bringing the car price down to $5,550.  Every car that a Kia dealer sells at this price is a public relations bonanza.

Another example is a 2009 Hyundai Accent which has a started MSRP of $13,818.00.  Consumer who purchase this car in July get a $1,500 factory rebate and if their clunker qualifies for a $4,500 credit that gives them a total of $6,000 toward a new Accent.  This would reduce the cost of the MSRP by 43.4% which is like getting the car for half price.

On the domestic front, Ford car shoppers can get similar savings when they purchase a Ford Focus Coupe in July.  With a $2,500 factory rebate and a $4,500 CARS credit consumers can deduct $7,000 off the price of a 2009 Ford Focus Coupe SE.  This brings down the starting MSRP of $16,875 over 41% to $9,875.   That’s a great story to tell and Ford dealers are ready to take advantage of this limited time program.

Without additional funding we predict the CARS program will run out of money by Labor Day weekend so consumers are encouraged to start shopping on Friday 24, 2009 and not delay their purchases until September or October.

Tags: cash for cars, nhtsa cars advertising, nhtsa logo