Dealers ready for Clunker program

By Aleasha Sandley, Herald Bulletin Staff Writer

July 01, 2009 11:46 pm

— ANDERSON — Local car dealers are waiting for the word “go” from the federal government to begin offering rebates for gas guzzlers.
Under the Car Allowance Rebate System — commonly known as Cash for Clunkers — the government will give $1 billion in rebates to 250,000 people who trade in their cars that get less than 18 miles per gallon for new, more fuel-efficient vehicles.
Derek Manis of Ed Martin Toyota-Scion and Chevrolet-Cadillac in Anderson said that dealership had customers lining up to take advantage of the deal.
“The customer this will attract is the person who’s got a vehicle at home, an old truck maybe worth 1,000 bucks,” Manis said. “This will inspire them to now know that they will get $4,500 for it.
“Those are the customers that I have waiting in the back for this thing to take effect.”
The National Highway Traffic Safety Administration, which is overseeing the program, told dealers it would be July 24 before all the information and paperwork is available to them to start offering the rebates to customers. The program’s original start date was July 1.
For now, dealers don’t have enough information from the federal government to be able to assume liability for the rebate-eligible vehicles, Manis said.
“We are not going to take action until we have exact information,” he said. “What is supposed to help the dealers could hurt them if we don’t follow the exact program.”
Still, Manis said Ed Martin was already working with customers to figure out exactly what rebate they will get and whether their trade-in vehicles apply for the rebate.
Chris DeFord, general sales manager for Tom Wood Honda in Anderson, said that dealership also is preparing for customers wanting to take advantage of the federal program.
“We’ve already started a list of customers,” he said.
Under the program, which is designed to give the economy a jump start by increasing demand for new cars, customers must trade in their gas guzzlers for a new car that gets at least 10 miles more per gallon to get a $4,500 rebate. The new car must get between four and nine miles per gallon more to qualify for a $3,500 rebate.
Manis said dealerships likely would receive incremental sales due to the program, not large volumes of new customers.
“I would assume that every dealer would want to be a part of it,” he said. “It would ultimately give us more customers. We’re excited about it.”
DeFord said his Honda dealership was poised to benefit from the program because it specializes in fuel-efficient vehicles.
“Almost everything that we sell fits into the parameters of the gas mileage stipulation,” he said. “(Honda has) been ahead of the curve for years and will prove their prowess once again.
“We’re obviously real excited about it. We expect it to be huge for us.”
Manis said the Cash for Clunkers program wasn’t aimed at helping those who struggle financially.
“It mandates that you buy a brand new car,” he said. “This will give them a very, very, very large incentive to trade. I think it’s going to be a win-win for those people that take advantage of it.”

Contact Aleasha Sandley: 640-4805, aleasha.sandley@heraldbulletin.com.