Maryland auto dealers are prepared today to give new car buyers up to $4,500 for their old gas-guzzlers under the government's "cash for clunkers" program designed to protect the environment and boost the troubled auto industry.
"Anything in this market that improves ... sales, you got to get a little excited over," says Bob Bell, owner of Bob Bell Automotive Group. The dealership has more than a dozen traded-in clunkers on its lot waiting for their owners to pick out their new vehicles.
The "cash for clunkers" program, officially named the Car Allowance Rebate System, was signed into law a month ago, and government officials have until today to post the details online. Dealers can start registering today for the program, under which consumers can get $3,500 or $4,500 off the purchase or lease of a new fuel-efficient vehicle if they scrap their old heaps. The incentive applies to car and truck purchases made between July 1 through Nov. 1, or until the $1 billion in federal funding dries up.
Ever since the legislation was passed, there has been confusion over which vehicles qualify, when and how dealers will be reimbursed, and what needs to be done to prove the vehicle has been scrapped as required by law. Auto dealer associations have advised their members to wait until the government issued final regulations before giving out the cash incentives or risk not being reimbursed if a vehicle didn't qualify for the incentive.
Some haven't waited. Hyundai, for example, started making short-term cash advances to dealers early this month to give to consumers trading in an old car for a new Hyundai. Bell says his dealership sold a dozen Hyundai vehicles this month that were eligible for the cash incentive.
The official Web site for information on qualifying vehicles and participating dealers is www.cars.gov. The National Highway Traffic Safety Administration has warned against Web sites that appear to be affiliated with the program but are "phishing" for personal information.
Jose Ucles, a spokesman for the government highway administration, advises consumers to wait until dealers are certified to participate in the program, which could be the start of next week, before signing to purchase a vehicle. Consumers can check the government's Web site for certified dealers or ask the dealer to see its certification, Ucles says.
He also warns consumers against signing any paperwork promising to reimburse the dealer for the cash incentive if the government doesn't.
