Umm, where are all those "Cash for clunkers" going to go? If you have a clunker, and trade it in for a new car, the dealer is just going to re-sell it, right? So, the clunker is still on the road ... Or, does it get melted down? If it gets put in the junkyard, it could be a bigger environmental disaster than just driving the thing, right? Inquiring minds want to know ...
In addition, are people really saving anything on the new cars? If you have a clunker and they have marked up the MSRP with a ADM - or additional dealer markup - then you really don't save anything, it's just another auto dealer scam.
I remember the AutoFair Hyundai in Manch trying to pull that on buyers back in June 2007, tacking on another $1,500 on top of the MSRP of an Accent that was overpriced to begin with. After telling the sales rep. that I wasn't going to buy that day, I was just looking around, he called over his manager for a high pressure close ... I remember his words to this day: "How much am I going to have to lose to get your business today ..." Oh, this isn't a good sign, I thought. After toying with him - "OK, I'll give your $3,000 for it ..." They looked at me like I had three heads. See ya, wouldn't want to be ya ...
If you have a clunker and you're thinking about getting something new, don't fall for the MSRP or ADM crap. Go to www.edmunds.com, get the invoice price of the car you want, go into the dealer with your trade, ask for the invoice price and the clunker money. You will then get a good deal and a new car. Good luck!
In addition, are people really saving anything on the new cars? If you have a clunker and they have marked up the MSRP with a ADM - or additional dealer markup - then you really don't save anything, it's just another auto dealer scam.
I remember the AutoFair Hyundai in Manch trying to pull that on buyers back in June 2007, tacking on another $1,500 on top of the MSRP of an Accent that was overpriced to begin with. After telling the sales rep. that I wasn't going to buy that day, I was just looking around, he called over his manager for a high pressure close ... I remember his words to this day: "How much am I going to have to lose to get your business today ..." Oh, this isn't a good sign, I thought. After toying with him - "OK, I'll give your $3,000 for it ..." They looked at me like I had three heads. See ya, wouldn't want to be ya ...
If you have a clunker and you're thinking about getting something new, don't fall for the MSRP or ADM crap. Go to www.edmunds.com, get the invoice price of the car you want, go into the dealer with your trade, ask for the invoice price and the clunker money. You will then get a good deal and a new car. Good luck!
3 comments:
My understanding is that the clunker cars are required to be crushed. They can't be resold, or parted out, or anything. They need to be destroyed, and there is some sort of proof required for the disposition.
There has been some concern that there would be a shortage of cheap cars due to this requirement, and that there is a chance that the average price of cheap used cars will go up a bit due to low supply.
Hey Anon9:36,
Thanks for the information. Interesting point about the cheap cars. That seems like a reasonable fear.
I hope that the legislation has a provision for the "Additional Dealer Mark-up." I hope that the dealers that took advantage are charged back. The program was not intended as a profit boom for dealers. The program was intended to stimulate. The only dealers that I personally witnessed putting and ADM on the MSRP were the import dealers. Trust me, I am fully in favor of letting the market run free. I was against the stimulus and "cash for clunkers." We did not need it and neither program will restore order to the financial system any quicker. The stimulus program will actually add to the looming inflation problem.
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