General Motors and Chrysler Group are in talks with lawmakers to try to fashion a new agreement on dealer closings and avoid legislation that would unwind the closing of thousands of these stores, spokesmen for the two companies said. "We're interested in a non-legislative solution," GM spokesman Greg Martin said in an e-mail. "We want to move forward, and we're trying to address congressional concerns

---------------------

Chrysler Financial said today it has paid off $1.5 billion in loans it had received from the U.S. Department of Treasury in January to fund vehicle loans and incentive programs for Chrysler consumers.  Chrysler Financial, the former lending arm of Chrysler, received the funding from the U.S. Treasury's financial bailout package, or Troubled Asset Relief Program, to support the automaker's sales by providing incentives and consumer loans.  As part of the U.S. government-sponsored restructuring of Chrysler and General Motors, GMAC is taking over responsibility for providing loans to finance inventory for Chrysler dealers from Chrysler Financial.

------------------------

Steven Rattner will leave as head of the U.S. autos task force, which oversaw bankruptcies at General Motors and Chrysler Group, at a time when a probe into how the private equity firm he co-founded gained New York pension business has intensified.  In announcing Rattner's resignation on Monday, Treasury Secretary Timothy Geithner said that the investor would be returning to private life and his family in New York. A source close to Rattner said he does not plan to rejoin his former firm, Quadrangle.    Smells like a scandal brewing.

 -------------------

Former General Motors CEO Rick Wagoner, ousted in March by the Obama administration, will retire in August with a package worth $8.6 million in the first five years, the company said on Tuesday.  Wagoner's retirement will take effect on August 1 and he will draw sharply reduced benefits after GM's federally financed bankruptcy, the company said on Tuesday.  The value of Wagoner's retirement package is about 60 percent lower than it would have been at the end of last year, before the largest U.S. automaker fell into a government-funded bankruptcy and its assets were sold to a new GM, federal regulatory filings show.

 --------------------

I saw this coming!  General Motors is considering a plan to save the Pontiac G8 sedan from extinction by making it the next Chevrolet Caprice sedan, says a source familiar with GM's product planning.  One answer to saving the G8 is to make a Chevrolet flagship sedan in limited volume and priced fairly high, the source said, and that sedan would likely be a Caprice.  GM also is considering using the high-performance underpinnings of the G8 GXP, which had a 415-hp V-8 engine in it, as a sort of "five-passenger Corvette" type of vehicle, the source said. GM definitely plans to use the vehicle for law enforcement, the source said.

--------------------

Chrysler Group will continue making and selling Dodge Vipers after all.   The company, under new ownership, today removed the for-sale sign from its Viper business and will continue making the sports car through 2010 and beyond.   "Chrysler Group is no longer pursuing a sale of the Viper business assets," the company said in a statement.   Michael Accavitti, CEO of the Dodge brand, said: "We're extremely proud that the ultimate American-built sports car with its world-class performance will live on as the iconic image leader of the Dodge brand."

--------------------

Chevrolet's use of "An American Revolution" will end this fall when it unveils a new advertising campaign.  We're in the process of developing a new campaign for Chevrolet this fall and it could potentially have a new tag line," Ed Peper, vice president of Chevrolet, told Automotive News. "It's really to evolve the brand. I don't want to give anything away to our competition, but it'll be very focused on our consumers."  Peper said the campaign will emphasize the message that Chevrolet delivers "great products."  Chevrolet has been using the "American Revolution" brand campaign since 2004.  

AirCheck Texas is a program to take old cars off the roads of Texas.  You can get either $3000 or $3500 for your 2000 model or older car, if you buy a 2007 or newer car.  This is in addition to the CARS program below.  All indications are the programs can be combined.

 

Although the program ended last week, they will begin taking applications again on August 3^rd, 2009 and will be distributing funds again in early September.  The money will be sent on a first come-first served basis.

*I have removed the rules from the bottom of the page, but if you need information, you can go directly to their website at: AIRCHECK TEXAS PROGRAM

Unfortunately, there is nothing new to report this week.  I am starting to have doubts that the final rules will be announced on July 23, 2009.   As I have told you on air, I'll let my listeners know first what is going on, when I have solid info.

 

I had a phone conversation recently with a media person at NHTSA in Washington.  They are as in the dark as the rest of us.  It was not exactly a fruitful conversation, but they were very nice.  I've requested an on-air interview with them once the rules are set.

 

Here is a Question/Answer that is right up to date to the best of my knowledge.  Remember, many things can and may change before the final rules are published, but for now this is it.  Stay tuned to the show and to the CarGuy Weekly for further details.  If you know anyone that might qualify, please encourage them to join the CarGuy Weekly mailing list.

 

What is C.A.R.S. - Cars Allowance Rebate System (also known as Cash for Clunkers)?

CARS is a Government sponsored program to assist customers in trading off certain

qualified vehicles for a new, fuel-efficient vehicle. Customers receive a $3,500 or $4,500 C.A.R.S. incentive from the Government on top of all other incentives in exchange for their vehicle.

What vehicles qualify for this program?

The trade in vehicle must meet the following criteria:

· have been manufactured less than 25 years before the date you trade it in

· have a "new" combined city/highway fuel economy of 18 miles per gallon or less

· be in drivable condition

· be continuously insured and registered to the same owner for the full year preceding the trade-in.

Note that for some transactions, work trucks (i.e., very large pickup trucks and cargo vans) only qualify if they are 2001 models or earlier.

How do I find out when my vehicle was manufactured?

The month and year of manufacture date will appear on the safety standard certification label that is located on the frame or edge of the driver's door in most vehicles.

How do I find out if my vehicle qualifies?

 The ONLY source that counts to find out your current vehicles combined city/highway mileage is www.fueleconomy.gov 

Do I need to get a C.A.R.S. incentive or sign up for this program?

No. You do not need an actual voucher and you are not required to sign up or enroll in this program. Participating CarGuy Show dealers will apply a credit, reducing the price you pay at the time of your purchase or lease, provided the vehicle you buy or lease and the vehicle you trade in meet the program requirements. Your CarGuy Show dealer will then obtain reimbursement from the government.

How many C.A.R.S. incentives are available?

The government has approved funding for $1 billion under this program and the program will end when the budget has been exhausted or by November 1 2009, whichever comes first.

When will this program take effect?

The U.S. Department of Transportation has 30 days from the date the President signs the bill, which was June 23, 2009 to finalize the program rules and initiate the program, however the start date could be delayed.

Am I limited to what new vehicle I can purchase?

Yes. First, for most transactions, the EPA combined city/highway fuel economy of the vehicle you purchase must be higher (by specified amount) than that of the vehicle you are trading in. The amount of the difference that is required depends on the specific types of vehicles involved in the transaction. Second, the manufacturers' suggested retail price for the new vehicle cannot exceed $45,000. Third, the program requires that the new vehicle meets certain MPG requirements. 

To get the $3500 incentive:

• The new car must get at least 4 miles per gallon better fuel economy than the old car.  This is based on EPA Fuel Economy COMBINED city/highway mileage as determined by the EPA.
• If you select a truck or SUV as your new vehicle, the new vehicle must get at least 2 miles per gallon better fuel economy than the old vehicle.

To get a $4500 incentive:

• The new car must get at least 10 miles per gallon better fuel economy than the old car.  This is based on EPA Fuel Economy COMBINED city/highway mileage as determined by the EPA.
• If you select a truck or SUV as your new vehicle, the new vehicle must get at least 5 miles per gallon better fuel economy than the old vehicle.

What do consumers need to do to claim and redeem their C.A.R.S. incentive?

Participating CarGuy Show dealers will be able to seamlessly handle this program for consumers. The dealer will take a customer's qualifying vehicle as a trade in and deduct the C.A.R.S. incentive amount from the purchase price of the new vehicle. The dealer will handle all of the paperwork and will apply for the C.A.R.S. incentive on the customer's behalf.

How do I trade in my old vehicle?

The C.A.R.S. incentive amount will be applied to the new vehicle purchase price rather than sent to you.

In addition to the C.A.R.S. incentive, will I get the full value of my trade-in vehicle?

No. The law requires your trade-in vehicle to be destroyed. Therefore, the value you negotiate with the dealer for your trade-in vehicle is not likely to exceed its scrap value. 

How can I reserve a C.A.R.S. incentive?

This C.A.R.S. incentive program cannot be reserved; they are available on a first-come, first-served basis.

I have a truck and I cannot find its fuel economy rating. Is it an eligible trade-in vehicle?

Maybe. Large trucks (3/4 ton and up) do not have an EPA fuel economy number. For these trucks, age is the only criterion for determining whether they are eligible trade-in vehicles. If you have one of these trucks, it must be from model year 2001 or earlier. The other criteria for an eligible unit must also be met in order for the vehicle to be eligible.

I just traded in my old car for a new vehicle last month. Will I get some money back?

No. The program does not apply retroactively.

How many C.A.R.S. incentives claims can I make?

The program limits the number of C.A.R.S. incentives to one per customer, including joint registered owners of a single eligible trade-in vehicle.

Can I apply more than one C.A.R.S. incentive claim to the same new vehicle sale?

No, only one C.A.R.S. incentive can be used on each sale.

Can I combine this C.A.R.S. incentive with other Manufacturer rebates or incentives?

Yes, you can use this C.A.R.S. incentive with all manufacturer rebates that you currently qualify for.

Can I combine this with other government incentives?

Yes. You can combine this with other State and Federal incentives, such as the hybrid vehicle credit.

Where can I get more information?

The government has set up cars.gov as their website for additional information.  I have found this to be the BEST source of information as it becomes available.

WARNING:  There will be many websites intended to make you think they are associated with the CARS program.  www.cars.gov is the only official Government site.  If a website requires you to register, it is not a legitimate website for this program.  It is someone trying to get a lead on people interested in this program.

Does the program apply if I want to lease a vehicle, or must I purchase a vehicle?

Under the program, you may purchase a new vehicle or lease a new vehicle, provided the lease period for the new vehicle is at least five years, which I do not normally recommend.

Do I have to pay taxes on the amount of the C.A.R.S. incentive?

No, this incentive is not taxed.

Is there an income limit that disqualifies certain vehicle owners?

No, there is no income limit for this program.  

The Houston CarGuy Show rolls on every Saturday for a total of FIVE HOURS of the CarGuy Show weekly!   We are on Sports Radio 610, KILT for 3 hours.   We start about 5 minutes after we go off the air on WBAP at 11 AM and run until 2 PM.   If you want to join us over the Internet for more of the CarGuy Show:  THE HOUSTON CARGUY SHOW: LISTEN LIVE

Wow.   What a week for this segment to return.  The dealers are going nuts!  You really have to be careful out there NOT of fall for crap like this.

 

We have a Honda dealer spending a TON of money on a campaign touting "hundreds of new Hondas at $149 per month".    A close look at the fine print shows it to be a stripped Civic on a 3 year lease with $3300 down.  The "special $149 per month" cars are parked in their "clearance section" and there is a specific stock number, meaning there is only one at that price.  Imagine that.

 

Then a Ford dealer is screaming at us about a new $6994 Ford Focus or Ranger.  Only problem is he has deducted the $4500 CARS Federal program rebate, which most won't qualify for and that is HIGHLY illegal.  What a shame to stoop to such lows, I hope the State of Texas finds out somehow!

 

And finally, my least favorite Nissan dealer started running the "buy one, get one free" sale again on Wednesday.  They had been off that for a while.  Like I always say, if you charge enough for the first car, the second one can be really cheap.  The hook here is that once you pay full price for a used car, you can choose from a group of junkers in the "winners circle", of course "as long as supplies last".

 

UPDATE:  Here is an email an astute listener sent me right before deadline for the newsletter!  HEY, maybe we ARE making a difference here!

 

UNEDITED from the Dallas Better Business Bureau:

 

TxDOT Warns Trophy Nissan on "Buy One, Get One" Ads

Following BBB challenges and referral to TxDOT

A local car dealer has been notified by the Texas Department of Transportation (TxDOT) to stop its "Buy One, Get One" advertising. The warning came after the Better Business Bureau serving Dallas and Northeast Texas (BBB) referred concerns about the advertising claim to TxDOT.

Trophy Nissan, Inc., 5031 N. Galloway Ave., Mesquite, advertised repeatedly "Buy One, Get One for a Buck" and "Buy One, Get One Free".
 
But would the second car truly cost only "a Buck" or be "free"? When purchasing something like a car where the price is negotiated, how can a buyer tell whether the negotiated price includes the cost of the item offered "free"?

The answer is that the customer can't tell. That's why the BBB Code of Advertising says:

In a negotiated sale no "free" offer of another product or service should be made where the product or service to be purchased usually is sold at a price arrived at through bargaining, rather than a regular price.

The BBB's Advertising Review program identifies ads that do not meet the BBB Code of Advertising and asks advertisers to voluntarily substantiate, modify, or discontinue the ads. The BBB first brought its concerns about Trophy Nissan's advertising to the dealer's attention, and when the advertising claims continued, the BBB referred information about the ads to the Texas Department of Transportation.

The Texas Administrative Code states:

No merchandise or enticement may be described as "free" if the vehicle can be purchased or leased for a lesser price without the merchandise or enticement or if the price of the vehicle has been increased to cover the cost or any part of the cost of the merchandise or enticement. The advertisement shall clearly and conspicuously disclose the conditions under which the "free" offer may be obtained.

In November, 2006, Trophy Nissan advertised "Buy One Vehicle, Get One for a Buck". The BBB asked the company to substantiate that claim. The business temporarily discontinued the advertising campaign in early 2007, and the BBB asked Trophy Nissan to supply substantiation before using the claim in the future.

In April, 2007, without providing any substantiation to the BBB, the business continued the "Buy One, Get One for a Buck" advertising.

In May, 2007, Trophy Nissan advised the BBB that it would permanently discontinue the "Buy One, Get One for a Buck" advertising.

In January, 2008, the business began a "Buy One Get One Free" campaign, and failed to respond to the BBB's request to modify that advertising.

In early 2009, Trophy Nissan ran the 'Buy One, Get One'  campaign again. The BBB immediately alerted the Texas Department of Transportation.

In April, 2009, the Texas Department of Transportation informed the BBB that, after an investigation, a warning letter was sent to Trophy Nissan. The warning letter notified the dealer of violation of applicable statutes, and warned that another violation of the statute within one year would result in formal disciplinary action.

Due in part to Trophy Nissan's failure to cooperate with the BBB's Advertising Review program, the business has a BBB rating of "F". Other reasons for the rating include:

     ·  52 complaints filed against business
     ·  Failure to respond to 2 complaints filed against business

Brought to you by North Texas Fleet Services www.ntxfleet.com

 

Q.  Are run flat tires a smart buy?

A.   Sort of depends on who you ask Average dude.  If you have them and puncture a tire, you'll love them.  If you wear a set out and have to replace them you probably won't love them, they are expensive.  But I get mixed reactions from people.  Some love them and others don't like the ride or expense.

Decide before you buy a car with them, unless you don't have a choice, like the late model Corvettes.  If you have them, I am told you cannot put regular tires on the same wheels.

Word:  Importunate

Pronunciation:  im POR chuh net

Definition:  Troublesome, bothersome, annoying

Used in a sentence:Even after dozens of repair visits, the staff at Herb's Paint and Body never find Kevin importunate.

 

 

 

 

 

Thank you Jerry! I am now the proud owner of a 2010 Fusion Sport!

On Monday, my husband stopped by Five Star Ford and met BJ.  He showed him around.  Due to my work schedule I was unable to get there until Thursday.  We called BJ about 5:00 to see if he would be there.  He stated he would wait for us.  He was awesome!  Unbeknownst to us, he was suppose to get off at 6:00. You would never have guessed it.  He was very patient with us, took time to show us every Fusion they had.  I was very impressed with the inventory compared to Rodeo Ford.

We test drove the Fusion Sport and I loved it!  Thanks to you we also got the great deal on the extended warranty and other items.  Everyone we dealt with BJ, Sheila, and Brandon were very customer friendly.  It truly was a great car buying experience.

Needless to say, as I was driving away from the dealership at 8:30 p.m., BJ was working with another customer!  He is very dedicated to his customers.

Thanks again for your help.

Laurie

 

****************

 

Hello Jerry,

OK, I won't bother you anymore, but had to say thank you one more time.  I just brought home the cutest R/T Challenger from Park Cities and I didn't have to pay over MSRP. (Paid $33,200 and was glad to do so") I also purchased the lifetime bumper to bumper warranty which I think was a real bargain since I expect to keep the car till I die.  Kind of like the movie "Grand Toreno". My wife is so happy that I will definitely be king of the house for a few days.  

Leo Griggs the Owner and my salesman Curtis was everything you said they would be.  They made me feel like family. I've had several good experiences in the past buying cars, but haven't experienced the "down home" and honest feeling I received today.  Curtis introduced me to several department heads I might be dealing with down the line and everyone seemed to appreciate my business.  I will never set foot in a dealership owned by Allen Samuels again.  It's a shame that he will probably never hear about his management team's poor business ethics or maybe he already knows. I know I will tell at least 100 people about them. I've already contacted Becky Oliver with a lengthy email.  I am going to relay my disgust on the internet also.  I've never complained like this before just to let you how upset I was.

Please extend my warmest regards and appreciation to all the folks at Park Cities!  I am also blown away by your prompt, thorough, and experienced suggestions on what I should do.  You are real servant of others. Everything you told me was so right. Please tell me where you like to eat as I want to at least buy you and your wife dinner.  I will be buying a new pick up in about 2 years or so. I have a 2002 F-250 four wheel drive with 90,000 miles that still looks and drives like new.  I probably won't trade it off as it just won't die. I definitely would like your newsletter.  If you ever need any furniture repaired let me know.  I worked at Weir's Furniture for 33 years leaving as their customer service manager of all 3 stores.  I have my own furniture repair business now named Circle J Furniture Repair and can guarantee you a great discount as well as the best quality and service.

Sincerely,

Dennis & Lisa

Leonard, Texas

 

*****************

 

Jerry, I went to Freeman Hyundai, met Mr. Gibson and Brad Collins who gave me a great deal on a car and left very pleased .

 Thanks so much for your help.

Wade

 

*****************

 

Jerry,

 

I just wanted to let you know that I took a 90 degree turn as a result of your newsletter last week.  I had decided I might take a look at the VW, but would probably wait a few months and buy a Camry.   I didn't read your Thursday newsletter last week until Friday morning.  I saw the offer at Autobahn Volvo for $11,000 off the S80, and I my heart started racing.  My wife had always wanted a Volvo, but they were always just out of reach for our budget, or just not practical for our stage of life (when we bought our Yukon).  Right now, it was the budget that had kept us from even looking.  When I saw a base S80 under $30,000, we just had to drive it.  It was still stretching what we intended to spend, but within reach. 

 

The base S80 has virtually all the features of a fully loaded Camry, and was now almost the same price.  Because your newsletter said you were out for the weekend, I didn't bother sending you an email to get your referral.  However, we did mention you were the only reason we were even there, and in the closing process, listed you as the referral source.  

 

Now, for a review on the car buying experience:

 

I did a little more research before contacting Autobahn, and found out about the 5 yr Safe and Sound program Volvo is offering -- which was the thing that put me over the top.  We keep our cars a long time, so having a maintenance free car for 5 years was a great selling point.  We then looked at the Autobahn website and found the one we wanted.  The cars priced at the loaner price stated they were not eligible for the 5 year program, but Autobaun was selling them with a 6 year, 100,000 mile warranty.  Some showed the odometer with only a few hundred miles.  The one we wanted, however, showed 5 miles on the odometer.   We called Alan Edwards, the internet sales contact, who verified that it was one of the loaner cars, but had simply never been loaned.   We made an appointment for late Friday afternoon. 

 

Alan was the perfect sales person for us.  Laid back, low pressure, and informative.  He has a dry sense of humor similar to my own.  We may have been his easiest sale ever, because we drove the car for 10 minutes, looked at each other and knew we were buyers.  After your email below, I had already decided to sell my pickup outright, so when Alan asked when we thought we would be making a purchase decision, my wife said "NOW".  Thankfully, our Credit Union was able to turn paperwork quickly, so they had us out of there in our card by close of business Friday.  We were thrilled because they were closed Saturday, and we would have had to wait until Monday evening to get the car.  

 

This was the most enjoyable car buying experience I've ever had.  Thanks to you and your newsletter we found out about the deal of a lifetime that would have passed us by. And thanks to Alan Edwards and Ronnie Dempsey, we're confident we've found an exceptional car and an exceptional dealership that will get the first shot at our business with all future car purchases. We'll also refer friends and family there at any opportunity.  

 

A million thanks!

 

Mike

 

***************

 

Jerry:

 

Thanks for your assistance.  My daughter Adrianne bought a beautiful blue Honda Civic today.  Your help was most appreciated.  That little car has so many amenities.  I told her I was jealous. The sales team at Rusty Wallis definitely operated on a level five. 

 

Anyway, thanks again and thanks to my wife who is your faithful listener.

 

Bill

 

**************

 

Jerry:

We purchased the truck from Leo Griggs at Park Cities Dodge and got a great deal! As stated in your e-mail Leo came off of the price to make it an even better deal plus he added in a trailer receiver and ball, detailed the inside and fixed a couple of interior scratches, fixed a dent on the tail gate and put on a new antenna. Overall just a great experience! The best part about the whole process was that it was done quickly, efficiently and my son (driver of the truck) and my wife are very happy which makes my like much less complicated. Thx again so much for the help - you are the best! Keep up the great work.

I have one additional question for you. The truck did not come with keyless entry so we need to find someone who can do this. Do you have anyone in particular who is "car guy endorsed" who can help us? Thx again.   

 

*********************

 

Jerry,

 

I just wanted to let you know you are always showing letters of listeners
who buy cars from one of your sponsors, but I wanted to say a good word
about the service at Courtesy Nissan. We bought our Murano right after it
came out in 2003 and haven't looked back. It is an excellent car, fun to
drive and carries all we need to Atlanta to see our grandchildren. Ever
since we bought the car at Courtesy, we've taken it there for service and
Mark Bailey was our service advisor. Last year Mark left and there were
several advisors rotating through his office. We've used Joe Burke and he is
excellent, but now Mark is back and it's like an old friend has returned
home. The service techs are excellent and efficient and what I like is if
there is something wrong, it's fixed right the first time. It's good to have
Mark back in the fold along side Joe in the best Nissan service department
in the Dallas area. I can't wait to go see Mike Cory and get a new 2009
Murano, now that I drooled over one yesterday. We love the show and stay
well.

 

Bob and Dinah

 

****************

 

Hi Jerry:

 

This is just a followup on our previous emails. I want to thank you very much for setting me up with  Five Star Ford in North Richland Hills. On the same day you sent me your email, i received calls from two of their salespeople, but I wasn't able to talk with them since I wasn't home when they called. I then called Terry Rich on Monday the 22nd and told him we planned to visit him on the 24th to discuss buying the 2010 Ford Fusion you sent me the window sticker on.

 

In brief, my wife and I traveled to the dealership from Abilene on Wednesday the 24th and bought that car.

 

Following are my experiences with the dealership and its personnel during that visit:

 

1. Since I descended on them with my wife and my daughter (who lives in Ft. Worth) and her two kids I was afraid my entourage might test their hospitality.  Not so - Terry Rich was extremely hospitable.

 

2. When Terry learned that my daughter had bought a vehicle from his dealership previously and had dealt with Mark Lancaster, their Internet Manager, he immediately set us up with Mark to take care of our needs. (As a side note, my daughter and Mark were childhood friends back in Kentucky where they both lived one street apart from each other - both attended the same high school. She wouldn't hear of us dealing with anyone else.)

 

3. Our experience with Mark Lancaster was first-rate. I'm 71+ years old and have had many, many car buying experiences all over the country. This was, by far, my best experience. They weren't able to offer us enough trade-in on our 2004 Camry XLE (100,000+ miles) to satisfy us, but we bought the new Fusion anyway, since the price on the unit was quite acceptable. We drove both the Fusion and the Camry back to Abilene and my son's wife now has a meticulously cared for Camry to drive and is quite happy.

 

4. We also had a very positive experience with their finance representative. Tony (I've mentally misplaced his last name) was very helpful in setting up the financing on the car.

 

5. We've had several followup calls from the dealership since we returned to make sure we were satisfied with everything. Mark even called my daughter to tell her that he'd be available to help us with any features on the car that might give us trouble, since the car has many "bells and whistles". He wasn't kidding - the car has many marvelous features and we're having fun learning to use them.

 

Thanks again for recommending the Five Star Ford dealership and setting us up with Terry Rich and his people. HOPE YOU'RE STILL RECOVERING WELL! 

Sometime during this week's show, I will use the term GRAN TORINO .  When you hear that word, the SECOND person to call 817 695-0037 will win golf for three including two carts at the new and refurbished Eastern Hills Country Club in Garland.  You'll want to be sure to eat there too...they have a terrific Chef and he is putting out some of the best food I have ever eaten!

 

Here is the website to Eastern Hills:  www.easternhillscc.com

As an audience you have certainly showed interest in the Federal CARS program, which stands for Car Allowance Rebate System.  Most of us know it as the "cash for clunkers" program.  It is slated to begin on July 23^rd, a week from yesterday although I have doubts about it.

 

For some of you, this will be a great program.  Many will be unhappy with it however, as I am learning already.  For those that it benefits, I am thrilled!  After all, whatever is good for our dealers is good for the show.  Straight talk and honest answers as you have come to expect.

 

But don't lose sight of the fact that this IS a Federal program.  Many questions remain and may still be there after the program starts.  This puts consumers AND dealers in an odd place.  I have already heard from people who have vehicles clearly worth more the government is going to give for them to scrap it.

 

As a former retailer, I would sure want clarity from the government before extending a credit of $3500 to $4500 which they say they'll pay within 30 days.  Even small dealers could do 10 deals in just a few days, putting them on the hook for between $35000 and $45000 dollars.  If the NHTSA doesn't pay over a technicality, who do you complain to?  Big dealers will do 10 times that amount of sales in short order and could be out a half million dollars.

 

Estimates say this program will cover 250,000 new vehicle sales.  That is GOOD news.  The bad news is this program won't last long.  Let's look at the numbers:

 

Even in this TOUGH year for sales, if the pace doesn't pick up, there should be a total of 9,500,000 new car sales.  That is 182,692 sales per WEEK.  Yes per week.  This Federal program, under even normal conditions, could be over in 10 days.  Yes, I realize many people won't qualify and many won't have cars that are less than 25 years old and get less than 18 miles per gallon.  But many will and there will be a surge of business.

 

So looking at the numbers, this program will hit hard and fast and end quickly.  Our listeners and particularly you newsletter subscribers will know the most, that's a promise.  I just don't want everyone to get their hopes too high. 

 

I had to laugh at a number of emails this week that wanted to take advantage of this Federal program, but expressed they didn't want to buy a GM or Chrysler product because they took bailout money.

 

HUH?

 

Until next week, stay safe!