Cash for Clunkers Honeymoon Over
The Cash for Clunkers honeymoon is over.
The initial euphoria for consumers who qualified has turned into frustration and anger. In fact, consumers who were locked out of participating because of the rules have emailed us to say that they are no longer envious of those who did.
Simple stated, they don’t need the aggravation and hassle.
Consumers are reporting despite a NHTSA announcement this week, dealers are not releasing their new cars once they have submitted all the required paperwork. Dealers and consumers are now at odds with each other. The automotive industry did not need another black eye or controversy that pits dealers against consumers.
If you take the time to read the comments on our SPEAK-OUT forum or the comments on our recent news articles you will understand why Cash for Clunkers has become a very negative experience for thousands of Americans.
Not all consumers are unhappy; many posts on our website show that reputable car dealers are delivering new cars and not holding consumer cars hostage which complies with the NHTSA press release. Many fine dealers have made the program work. We believe that their professionalism will be rewarded with loyal customers in the future.
Consumer Interest Stalled
The net result from all the Cash for Clunkers controversy this month is a drop in consumer interest. In the past week, consumer traffic visiting this website has dropped 25%. There are false reports that have confused the consumer and many have just given up after reading how difficult the process has become.
Our email box is full of stories that include:
- Consumers saying that they are not particpating in CARS because their computer data will become the property of the Federal Government. A falsehood perpetuated by a national newscaster.
- Consumers not seeking a CARS rebate because the government is requiring them to payback the rebates. This is perpetuated from the sales contingency agreements dealers have created to protection themselves.
- Consumers withdrawing from the program after dealers changed deals, terms and conditions which made them feel uncomfortable. The NHTSA has changed the game a few times and were late to speak out against contigency sales agreements but in the end, dealers are blamed.
- Consumers calling the fraud hot-line, inspector general and their legislators and getting a run around.
Dealers Seeking CARS Divorce
Dealers are pulling out of the program due to lack of payments and frustration that their applications that are being rejected for various reasons. One report this week claimed that the NHTSA was rejected 80% of initial applications that were submitted. If this is the case, dealers must be horribly unprepared to deal with the CARS program requirements.
Could it be that the NHTSA underestimated the amount of training dealers would need? Training? What training some dealers have told us. Is the NHTSA data input system that horribly flawed? If a teacher had 80% of his students failing, what would that indicate?
Dealers are at arms with the lack of payments they are seeing and some cannot take on any more risk. Stories from around the country are being published documenting dealer frustration; many are heading to divorce court.
We believe that this all could have been avoided in Congress did not require the NHTSA to start the program in 30 days. The problems that have cascaded out of control are primarily due to this unrealistic timeline; NHTSA under-staffing, lack of dealer training, lack of website server testing and dealer feedback on the processes and procedures for reimbursement.
If the Cash for Clunkers program running out of steam? Tell us what you think.
Tags: cash for clunkers honeymoon, cash for clunkers problems, cash for clunkers sales, NHTSA
33 Responses to “Cash for Clunkers Honeymoon Over”
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Karen, cheer up, you still might be able to get a very good deal on a car, as dealers will be trying to sustain the great business they’ve been having. My Ford dealer said they are going to be doing their own “Cash For Cream-puffs” starting next week, giving almost as-good deals on trade-ins.
I have ALL my paperwork in order, but my title is “paperless” It is notarized and shows that it is clear of the lien as I recently paid it off yet none of the dealers will accept it. The dealers all want the actual PAPER title which will take 2-4 weeks to be mailed from the DMV and being in California with extreme budget cuts that timeline will probably take twice as long! I am ready to buy but can’t because I am at the mercy of the state govt who insists that they have to mail the title to my house and there is no way to expedite the process. So my title will probably be in my mailbox a few days after the program closes (if the DMV is not behind…wishful thinking). It is so frustrating. Not having any cars in stock is also a huge problem because I only have one car that I have to drive every day so I can’t just give the dealer my old car and wait until the new one is delivered. I can’t afford to rent a car and my work schedule prohibits me from carpooling or using public transportation. I really do need new car (or at least newer car with better mileage). HEAVY SIGH
wishing I could have participated…
I suspect Cael does not work at a Dealership or is a salesman! I think he does not like the cash for clunker program. Cael is probable a customer who did not have a car that would qualify for the program or was rejected because he did not have proof of insurance or ownership. The dealer does not get a reduced payment or reduction of the rebate. If the dealer does not fill out the proper forms and provide all the information the transaction is rejected and the dealer has to refile. There was no computer error, just slow internet times due to the overwhelming usage for the servers and not enough personnel. This was a optional program for the dealers to sign up for, not mandatory. The customer should not sign anything saying they are liable for the $4500 if the Government does not send them their money. It is up to the dealer to submit the proper paperwork and follow all the instructions. There is no risk for the dealer if everything is done correctly. The only problem I have with this Bill is the destruction of the cars or clunkers. Some of the car are in good condition and should be resold to people who cannot afford new cars or high car payments.
Re: Pamela’s complaints.
Cael, I agree with you. I’ve never seen so many whiners and crybabies as on this site. So many people whining. Yuck.
This site seems to just love pushing any bad news about C4C.
Well, the majority of people buying new cars are NOT having any problems, including myself and my son. Heck, I did my C4C deal back on July 3 with my Ford dealer, gave me my new car and waited until July 27 to submit the paperwork. Smooth as can be. And my son did his C4C deal at a Subaru dealer August 8, smooth also.
Pamela,
You seem to have a real sense of entitlement. Next time you go to the grocery store just bring all of your food to the counter and tell the clerk you are going to take it home. They should not worry because you applied for food stamps last week and they should get them some time in the future. How does the store know if you lied on your application? We have had deals rejected where consumers have provided bogus proofs of insurance that did not get past the audit. The dealer should not risk their necks on these deals there are no guarantees. What if we had rolled the car and now had to go chase it down and sell it as used now? Also, we would have destroyed that person’s clunker.
You have had your turd for how long? A few more weeks won’t kill you. YOU ARE NOT ENTITLED TO A NEW CAR. If you want one, pony up the money. Otherwise, afford the dealer some patience.
You sound like the woman that called 911 on Burger King for not making her Western Burger correctly.
Cael says:
August 17, 2009 at 10:10 am
“At my dealership we have just learned the hard way that if our customer happens to owe back taxes or child support their voucher is intercepted leaving the dealer holding the bag. We had a $4,500 rebate reduced to $1,800.
Cael, My cash strapped State will search out Gov’t monies for back child support. I find your statement totally believable and anyone who doesn’t is in their own State of Denial. It’s a misconception if people don’t think this rebate is tied to their name.
You shopuld check the CARS.COM website to find out the rule before talking with the dealer. You can’t use your mother card to trade in. Period.
I dropped by a couple of dealerships this morning to ask if I could use my recently deceased mother’s ’95 Thunderbird to buy a new car under this Cash for Clunkers boondoggle. The guy at the first dealership was eager to help me until I told him that although I had been driving the car and paying the insurance on it since my mom went into the nursing home a few years ago, I had never had the title changed so that it was in my name. When he found out the title wasn’t in my name he immediately lost all interest and all the color went out of his face. When I asked if there wasn’t something creative he could do to work out a deal and get me a rebate, he got a little brusque, and didn’t even want to consider it. Struck me as kind of strange that a car salesman didn’t even want to think about a deal that might not be as cut and dried as most. He did say that he had had a couple of “Clunker” deals rejected by the feds. It wasn’t until I got to the next dealer that I figured out what was going through the first guy’s head. Turns out that if the feds reject a “Clunker” deal because it didn’t meet all the requirements, they can fine (punish) the dealership up to $15,000 per incident. Don’t you just love the ways the idiots in Washington come up with to “stimulate” the economy?
Cael also tried to tell us that they had a voucher “intercepted” because of back taxes or child support owed by the customer. Bull Shit. The invoice is submitted in the name of the dealer, the $$$$ is owed to the dealer, not the consumer, and the consumer’s social security # appears nowhere in the submission process. The credit goes directly from the govt to the dealer’s bank account.
Cael,
I do hope you were turned into NHSTA. If not, why not give out the name of your dealership so that we can do so? You obviously had no intention of going the the rules that you signed and agreed to. You should be prosecuted to the fullest length of the law.
Somebody needs to drop a dime on Cael and all these other dealers that make up their own rules.
Cael wrote: “If you have a payment due before you get the car, too bad. You are an adult and have enetered into a finance contract. If you don’t want to pay interest, pay cash. That’s what Dave Ramsey tells you to do anyway. I am forthright in giving my customers a realistic timeline for the transaction of possibly over 30 days.”
While I understand that dealers are left “holding the bag” and need to protect themselves, why are you accepting payment in full (minus rebate) when you know full well that it may take over 30 days for the customer to get the car? Why not accept a deposit until the sale is finalized and the vehicle is delivered? Why do you expect the consumer to float $20,000 when your dealership will not float $4,500?
Like some of the folks posted here, I also started to look at the C4C progrm early on. None of the dealers knew more then I did, and I knew more then some of the sales people.
I purchased my car on July 24th, but didn’t had a paper work that showed I owned the car more than 1 year. So, the customers need to get that from their Secretary of State prior to going to the dealerships.
After I bought car and drove home, the salesman started sending fax to me. He said they forgot to get me to sign some documentation because they weren’t aware of C4C government paper. One of them was I would pay back $4500 if they don’t get the voucher payment from the government. I added addendum requring them to give me by Caddy back in same condition was I gave to them. If I’m paying them the money, then I wanted my car back. This didn’t go well with the salesman. He said his sales manager would call me, but never did. I wished they told me this before I signed the paper. They may have put this in place as “after thought”
I checked with them couple days ago. He said my paper work has been approved, but the government hasn’t paid them a cent. I’m still not out of woods yet.