Local auto dealers are already reporting steady interest and deposits for new cars as part of the federal government’s “cash for clunkers” program, which begins today.
The program offers $3,500 to $4,500 to car owners who trade in a gas-guzzler at least eight years old — and dating back no further than 1984 — for a new, more fuel-efficient vehicle. More information on the program is available online at www.cars.gov.
“We have 16 vehicles with deposits on them (and) signatures on buyers’ orders — just waiting for the final registration process to take place,” said Rick Resing-er, general sales manager with Champion Chevrolet in Genoa Township.
Today is the day that dealers can start registering for the program. The government won’t start approving transactions until Monday.
Rob Gatchell, sales manager at Brighton Honda, said his dealership is offering additional discounts in an attempt to lure even more prospective participants in the Car Allowance Rebate System, although he added the government allowance alone is a good deal.
“If you have the right vehicle, you qualify for $4,500,” Gatchell said. “You’re looking at a high percentage, almost 30 percent of the (new) vehicle.”
Program participants can re-ceive the $4,500 rebate if the new car they purchase has at least a fuel-economy standard of 10 miles per gallon more than the clunker. Different standards apply for different types of vehicles. The $3,500 rebate applies to cars that get at least 4 mpg, but less than 10 mpg, more than the clunker.
Gatchell said his dealership also has received several deposits.
Tina Socha, inventory and lease manager at Fowlerville Ford, said her office has received many calls of inquiry. However, she said many customers are also receiving some bad news.
“A lot of people have been disappointed,” Socha said. “Even if they have an older vehicle that’s running and driving, it doesn’t qualify.”
All clunkers must have a “new” — as defined by the government — combined city/highway fuel economy of 18 mpg or less. That might shock some people when they see their 1998 Ford Taurus, for example, has a new fuel-economy rating of 19 mpg, making it ineligible for the program.
Socha said it’s also unclear as to how long the $1 billion invested in the rebate program will run.
“They say it’s until Nov. 1, and they have $1 billion, but I think it’s going to run out,” Socha said. “But there’s another guy here who says I’m crazy, so it’s a matter of opinion.”
