Is Cash for Clunkers Improving Your Business?
Now that the Cash for Clunkers program has been out for a few weeks have you noticed an increase in new car volume? The program is much more consumer based and puts a lot of the work on the dealership. Many dealerships I have talked to wish that the US followed the German system where after the customer purchases the car for the full price the customer sends in all the information to the state, and then they issue a check directly to the customer. In the US the dealership must determine if the car qualifies, then give the discount to the customer immediately, then must dispose of the vehicle. Some dealerships are illegally making consumers sign an agreement that, if for some reason the government does not agree the car is a clunker, the customer must return the cash to the dealership. If you see any type document in the funding packet, be warned!