But Peter Kitzmiller, president of the Maryland Automobile Dealers Association, says consumers don't need to wait. Most Maryland dealers are expected to participate, and the dealers - not the consumers - will be on the hook if they give out cash for a vehicle that doesn't qualify for the program, he says.
"The dealers are going to want to get people in the program as quickly as possible," Kitzmiller says. His group is posting the names of Maryland dealers registering for the program on its site at www.mdauto.org.
Dealers and manufacturers view the program as a chance to jump-start sales and have been offering additional incentives, Kitzmiller says. "There are very, very large rebates across the board," he says.
Chrysler, for instance, recently announced it would match the government's incentive or offer 0 percent financing for consumers who turn in a clunker and buy a 2009 model. This Chrysler incentive runs through August and also will apply to trade-ins that don't qualify for the government program.
Annual auto sales are running about 9 million, compared with about 17 million in good times, Bell says. But dealers say the clunkers program is generating interest among consumers.
Customer traffic at the dealership picked up by 30 percent to 40 percent since the program was signed into law last month, says Russell Martin, new-car sales manager at Koons Ford of Baltimore. Martin says he has had preliminary paperwork filled out for about a dozen customers who plan to take advantage of the program.
Critics, though, say cash for clunkers will generate only about 250,000 auto sales and that the criteria to qualify for the cash incentive is too narrow to have widespread impact. Besides, the rules are complicated. For instance, a trade-in vehicle must have a combined fuel economy rating of 18 miles per gallon or less. Buyers will get $3,500 or $4,500 depending on the fuel efficiency of the new car.
Other critics worry the program will have a negative impact on charities that receive money from donated vehicles.
There also may be some disappointed consumers. Sam Weaver, a vice president with Chevy Chase Acura Nissan in Bethesda, says some consumers early on thought they got the cash incentive on top of the trade-in value of the car. Trade-ins are scrapped and can't be resold.
Also, the program isn't suited for those whose old vehicle is worth more than the cash incentive.
