AzPete
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Area Car Dealers Waiting for Government "Clunker" Money Save Email Print
Posted: 6:19 PM Aug 5, 2009
Last Updated: 6:19 PM Aug 5, 2009
Reporter: Matt de Nesnera
Email Address: matthew.denesnera@wjhg.com
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As the U.S. Senate debates another $2 billion for the "Cash for Clunkers" program, local car dealers are reporting more problems. Under the federal program, the trade-in vehicles are supposed to be destroyed.
The rules require dealers to destroy the clunker by pouring sodium silicate, or "liquid glass," into the engine, causing it to freeze up. That in itself has been emotionally difficult for local car dealers. George Gainer, owner of Bay Lincoln-Mercury-Dodge says, "It has been a very sad occasion to euthanize these vehicles."
Gainer says those cars could be donated to the community, helping local schools or fire departments. But right now, most dealers are not destroying the vehicles. Gainer says, "We won't be blowing up any cars till we see that cash because in God we trust, but we don't particularly trust the federal government."
Under the "Cash for Clunkers" program, dealers are giving buyers up to $4,500 in discounts for their old gas guzzler. That can be used towards the purchase of a new, more fuel-efficient car. The government is then supposed to reimburse the dealer for that rebate. So far, that hasn't happened; the dealers are keeping the clunkers as insurance.
J.R. Ezzell, the business manager at Bill Byrd Kia, says, "If, for some reason, the dealer doesn't get paid, then we'll have to just wholesale the cars to an auction like we normally would."
As for the program itself, it has meant a boost in local car sales. Gainer says there's still a market for SUV's and pickup trucks. Others say fuel efficient vehicles have been flying off the lot. Jimmy Darnell, general sales manager at Cook-Whitehead Ford, says, "It's been great. We're getting in people we haven't seen in 15 years."
Jennifer Sikes recently traded in a 1997 Ford Expedition for a special edition 2010 Kia Soul. The Expedition got 12 miles to the gallon; Sikes says her new car gets about 30: "I filled up Friday and I haven't had to fill up again since." Despite the extra business, some dealers wonder if it's really worth the trouble. Gainer says, "This has been a nightmare for the dealers."
Senate Majority Leader Harry Reid said the Senate would act on the additional $2 billion for the "Cash for Clunkers" program before the summer recess.
http://www.wjhg.com/home/headlines/52552512.html
Posted: 6:19 PM Aug 5, 2009
Last Updated: 6:19 PM Aug 5, 2009
Reporter: Matt de Nesnera
Email Address: matthew.denesnera@wjhg.com
0 comments
A | A | A
As the U.S. Senate debates another $2 billion for the "Cash for Clunkers" program, local car dealers are reporting more problems. Under the federal program, the trade-in vehicles are supposed to be destroyed.
The rules require dealers to destroy the clunker by pouring sodium silicate, or "liquid glass," into the engine, causing it to freeze up. That in itself has been emotionally difficult for local car dealers. George Gainer, owner of Bay Lincoln-Mercury-Dodge says, "It has been a very sad occasion to euthanize these vehicles."
Gainer says those cars could be donated to the community, helping local schools or fire departments. But right now, most dealers are not destroying the vehicles. Gainer says, "We won't be blowing up any cars till we see that cash because in God we trust, but we don't particularly trust the federal government."
Under the "Cash for Clunkers" program, dealers are giving buyers up to $4,500 in discounts for their old gas guzzler. That can be used towards the purchase of a new, more fuel-efficient car. The government is then supposed to reimburse the dealer for that rebate. So far, that hasn't happened; the dealers are keeping the clunkers as insurance.
J.R. Ezzell, the business manager at Bill Byrd Kia, says, "If, for some reason, the dealer doesn't get paid, then we'll have to just wholesale the cars to an auction like we normally would."
As for the program itself, it has meant a boost in local car sales. Gainer says there's still a market for SUV's and pickup trucks. Others say fuel efficient vehicles have been flying off the lot. Jimmy Darnell, general sales manager at Cook-Whitehead Ford, says, "It's been great. We're getting in people we haven't seen in 15 years."
Jennifer Sikes recently traded in a 1997 Ford Expedition for a special edition 2010 Kia Soul. The Expedition got 12 miles to the gallon; Sikes says her new car gets about 30: "I filled up Friday and I haven't had to fill up again since." Despite the extra business, some dealers wonder if it's really worth the trouble. Gainer says, "This has been a nightmare for the dealers."
Senate Majority Leader Harry Reid said the Senate would act on the additional $2 billion for the "Cash for Clunkers" program before the summer recess.
http://www.wjhg.com/home/headlines/52552512.html
