Cash for Clunkers Suspended? Maybe. Maybe Not.

Friday, July 31st, 2009

The latest cash for clunkers program news is that the program has been suspended. I’ve scanned various media reports and have surmised the following.

1. There is huge support for this program in the government, from consumers, and from the business community. You can bet your patootie there will be a massive campaign to push for a cash for clunkers extension. Such a push was already underway before the program even started, now it will just intensify.

2. From the information I’ve read it sounds like the suspension could be temporary. The sales have outpaced the government’s and dealer’s ability to process the cash for clunker paperwork. They don’t actually know how many cars they’ve sold that qualify for the cash for clunkers rebate. Once they catch up, it may very well be the case that there will be funds left in the program.

3.Hedge your bets. You need to be able to act very quickly should the program come back online. Now is the time to do research on what car you want to buy. Read our articles on the Cash for Clunker Process and about Cash for Clunker Eligible Vehicles so that when/if the program comes back you will be the first person on the car lot.  Here is a short list of some vehicles you may want to research as they should garner you a $4500 rebate under the cash for clunker program. (Whether or not they do qualify for the $4500 credit depends on your trade-in vehicle–car dealers should be able to assist you in making a final determination on how much of a rebate you can expect.)

Model; MSRP; Price Range

2010 Toyota Prius, $22,000; $17,500
2009 Hyundai Sonata, $18,700; $12,200
2009 Mini Cooper, $18,550; $14,050
2009 Nissan Altima, $19,900; $13,900
2009 Pontiac Vibe, $16,100l; $9,100
2009 Honda Odyssey, $26,355; $21,855
2009 Subaru Forester, $19,995; $15,495
2009 Toyota Venza, $25,975; $21,475
2009 Ford Escape, $20,435; $13,435
2009 Toyota Tacoma, $15,170; $9,170
2009 Ford Escape, $20,435; $13,435
2009 Toyota Tacoma, $15,170; $9,170

4. Because Congress is set to start their summer recess after today, additional funding may not arrive until the Fall. So if there are no funds left, there may additional funds allocated once Congress comes back from the Hamptons (or wherever they go).  Follow media reports and bookmark this blog to get up-to-date information on the cash for clunkers program. You can also sign up for a Google Alert.

I fully expect the cash for clunkers program to continue. These kinds of programs have been used successfully in Europe, setting a great precedent that creates a positive market incentive–business wants this, consumers want this, lawmakers want this, it’s just a matter of bringing it to a vote. Further, in just one month, the program has worked miracles in a sagging economy. To walk away from it now would be unwise.

Too many people want cash for clunkers to succeed for it to die so quickly. So do your research, keep your ear to the ground for news and be ready to jump on the cash for clunkers bandwagon the second the program goes live again.

Tags: cash for clunkers qualifying vehicles, cash for clunkers suspended
Posted in Uncategorized | No Comments »