Last-minute clunkers

Now that the Cash for Clunkers program is winding down, Edmunds.com offers a few tips for car-shoppers who are still looking for a new car.

The program was launched in mid- to late June when Congress passed the Consumer Assistance to Recycle and Save and Act (CARS). The legislation provided a tax credit up to $4,500 to trade in a gas guzzler for a more fuel efficient car.

Key aspects of the bill include:
• The trade-in vehicle must be crushed;
• Vehicles eligible to be crushed must have an EPA combined fuel economy rating of 18 miles per gallon or less, and the new vehicle must have a better mileage rate; and
• Eligible car owners must have owned the car to for more than one year.

Edmunds.com, recognized as a market-based, objective watchers of the auto sector, reported Friday (Aug. 21) that “it is likely that consumers will rush into dealerships in the coming days to take advantage of the program before the deadline.” Edmunds, which has written much about the Cash for Clunkers program, offered the following tips to those last-minute shoppers.

• Call the dealer and ensure that it is still participating in the program. “Many dealerships have dropped out of the program because it’s been a hassle for them to participate,” Edmunds noted.

• Ask the dealership personnel if they require buyers to sign additional paperwork beyond the sales contract, and if so, find another participating dealership. No such paperwork is legally required for the program.

• Review the qualifications and seriously consider if there is any reason why your application could be rejected.

• Realize that many “Cash for Clunkers” shoppers have paid a higher price for a new car because they neglected to do their homework before making the purchase. Don’t get swept up and forget to negotiate a good price on the car.

• Appraise your used car to make sure it is worth less than the Cash for Clunkers rebate for which your new purchase qualifies. This program is not the best financial decision for everyone who drives an older car.

• Consider that inventories at dealerships are generally rather light right now, so if you buy in a rush you might not get the car that you want.

• Prepare to bring an extra set of keys for your “clunker” so that you can drive away if the dealership isn’t doing business in a way that makes you feel comfortable. Don’t leave the dealership without a car.

“Some consumers have complained that their dealership held their cars ‘hostage’ through the application process, but this is neither necessary nor appropriate,” Edmunds noted.