Nick, does the cash-for–clunkers program work for used cars?

Well no but here are some issues to ponder while considering whether the cash- for-clunkers program makes sense for you. First of all, there are a lot of restrictions on which vehicles qualify for the program and what vehicles you’re eligible to purchase. The car you trade in must get less than 18 miles per gallon which automatically eliminates almost all small and mid-sized cars. So here’s what’s happening on countless new-car deals: The customer goes down to the dealership thinking they’re going to get $4500 for their car that in the marketplace might be worth say $1500. The customer finds out their car won’t qualify because it gets better than 18 miles per gallon but they become very excited about the prospect of a new car so they end up buying one anyway which is great for everyone right? Well, let me ask you this: In this scenario would it make more sense for that customer to buy a new 09 Chev Malibu for around $21000 or would it make more sense to buy a used 09 Malibu with 15000 miles for say $ 16000 saving that customer the initial depreciation that every new car takes? I’m a used car dealer so you can probably guess what my answer would be but I’ll bet a lot of folks get caught up in the moment and don’t necessarily make the most educated decision.Secondly, the vehicle you buy must get at least 2 miles per gallon better than the vehicle you trade in. So let’s say you currently have a ford focus and would like to get into a minivan for your growing family. Sorry, but you’re scenario would not work for the cash-for-clunkers program.Third, the vehicle you trade in must be a 2001 or older to qualify. I’m trying to think of who I know that drives a car that old and I’m coming up blank.Fourth, if you’re car is say a 2000 Chev Silverado 1500 Extended Cab with say 120,000 miles it’s probably worth more than $4500. If this is the case you would be much better off trading that truck in for a used truck and probably getting more for it off of a much better priced vehicle than you would using it in the clunkers program.Folks, don’t get me wrong. I’m happy when anything comes along that gets the wheels turning in terms of sales. It helps new and used dealers alike. You just want to go in making a good decision for you and your family and you should know whether your trade qualifies before shopping for a new car or that new car smell will put you under a spell and you’ll be forced into what may not be the best decision for you and your family.If you’re not sure whether your car qualifies for the cash-for-clunkers program check our www.cars.gov. All your questions will be answered on that website or feel free to contact us. We’ll be happy to fill you in.Here is our own cash-for-clunkers program: If you’re car is older than a 2002 and does not qualify for the cash-for-clunkers program we will guarantee you a minimum of $2000 for your trade or $1000 over fair market value up to $8000. You must trade your vehicle in for something worth at least $3000 more than the car you trade in. Give us a call and we’ll give you the details.