Customers ditch clunkers

2009-08-06 / Front Page

A LINE OF CLUNKERS SET in a field at Bossier Country in Fairfield after being traded for new cars in the government cash-for-clunkers program. School to start A LINE OF CLUNKERS SET in a field at Bossier Country in Fairfield after being traded for new cars in the government cash-for-clunkers program. School to start The government cashfor clunkers rebate program to stimulate the automotive business is proving popular in Fairfield as people trade in their older, gas guzzling vehicles for new models.

"We're selling a few," Randy Pretzer of Bossier Country says.

The program, which was slated to start July 1, really got underway on July 23 when rules on rebates were published.

Pretzer, and partner Scott Bossier, report they already have sold 10 new cars and taken a like number of clunkers in trade.

Customers can qualify for rebates of $4,500 or $3,500 depending on fuel economy—-if a trade for a new car nets 10 miles per gallon better combined fuel economy the rebate is $4,500, and if the fuel savings is 4-9 mpg the rebate is $3,500.

Rebate rules apply to cars, trucks and vans, and can be used at participating new car dealerships.

Bossier sells Dodge, Chrysler, Chevrolet and Hyundai vehicles. Most of their traffic is coming through Chrysler-Dodge and Hyundai lines.

"We are selling mostly Chrysler-Dodge cars, so far, because of their matching offer," Pretzer says.

Chrysler-Dodge offers a $4,500 rebate in addition to what is offered through the cash-for-clunkers program, a potential $9,000 savings on a new vehicle.

But, the partners point out, Hyundai is taking a proactive approach and is contacting owners of quali- fying clunkers to invite them to showrooms.

"We've got about 15 appointments through Hyundai set up," Pretzer says.

The government rebate program has proved so popular through the country that is was suspended last Thursday for fear of running through its allocated $1 billion, but it was reinstated Friday morning.

The program was originally slated to run until Nov. 1, but more money will have to be earmarked for it to continue that long.

An additional $2 billion is being sought and would extend the program through September.

About 16,000 dealers nationwide are participating and it was anticipated that 250,000 cars would be sold, which works out to about 13 vehicles per dealer. Bossier and others are running through that allotment quickly.

Because the program has proved so popular, it has taken time for dealers to submit government paperwork to claim the rebates for sales. Bossier reports that he was able to successfully submit his first claim last Thursday, a week after starting rebate sales.

"It took us a week just to get in the program," he says.

Initially, dealers were concerned that they would largely see customers that were poor credit risks, or with vehicles that were out of service, but that has not proven to be the case.

"It's not cleaning up the yards. It has been a pleasant surprise," Pretzer says.

He reports that many of the clunker deals have been made by older people who were driving older vehicles, and that had top credit marks.

The cash-for-clunkers program prohibits trading in vehicles that have not been driven regularly, or that were bought cheaply just to take advantage of the program—-customers must show that trade-in vehicles were owned and registered by them for at least a year.

After the deal is completed, the dealer must disable the motor so that the vehicle can be put back out on the road. The clunkers then will be transported to scrap yards to be destroyed.

Also, the vehicle must be less than 25 years old.

Bossier and Pretzer point out that the cash-forclunkers has brought new customers into their dealerships and it has especially stimulated Chrysler- Dodge sales because of the extra manufacture incentive.

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