If you bought a car under the CFC Program you may have been scammed by the dealer who sold you the new car! Might be worth checking!

Seeking more cash for their clunkers!

Buyers, dealers scrap over fees!

"The federal Car Allowance Rebate System program gave rebates of $3,500 or $4,500 to car buyers who traded in a gas guzzler when they bought a new vehicle. But although many buyers did not know it, they were also potentially eligible for up to hundreds of dollars more for the scrap value of their old cars.
The law called on dealers to share with customers the estimated amount each trade-in was worth as scrap. The dealers were allowed to keep $50 of that value, with the rest “negotiable between the consumer and the dealer,’’ according to Eric Bolton, a spokesman for the National Highway Traffic Safety Administration, which ran Cash for Clunkers."

http://www.boston.com/yourtown/framingham/articles/2010/01/02/seeking_more_cash_for_their_clunkers/?page=1

it also has not come out many of the cars did not qualify for the clunker money

they will be taxed and or back charged for the money maybe

pictures on the news were showing Mini vans painted up clunker and the junk yards were full of them

right under trusting a snake not to bite you is a car dealer salesman

The G'ment did such a swell job with CFC I can't wait for them to run my healthcare!

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So many Women so little duct tape.

From what I can tell the CFC program worked about as it should have. People traded in old cars and bought new ones, reducing inventory on lots all over the country.

An unintended consequence is that it probably hurt used car dealers.

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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC]

..I also have a 427 Cobra replica with an aluminum chassis.

CFC destroyed a lot of nice Mercedes Benz engines. These were engines that had many usable parts the rest of us could have used to keep our older cars going. oldest trick in the book: forced obsolescence

and let's not forget that there were people who took older PAID FOR cars and trucks and traded them in for 60 month CAR PAYMENTS PLUS INTEREST. higher insurance and car payments.....gotta keep the debt machine going....

AND

auto parts stores

repair shops

tire companys

it did to some degree save some fuel sure

but it was and still is a mess the way they just through tax payer money at a program that was to last 2 years - ended up 2 months i think and they had to stop it as the cars being sold did nothing for the USA

( japan ) yea dont tell me toyopet is an american car puting in a dozen bolts to an already painted and assembled unit shipped from japon it not BUILDING a car in the USA

60% were foregion cars doing nothing but taking US tax dollars and sending it over to another country

Scrap value on a running car is $250 last I checked. But I think its a lot lower now since steel is down. Since they had to destory the engines they would be worth a lot less.

I don't see the problem here, maybe the dealer screwed people out of $50? But if you factor in transporting the junkers the dealers probably should have charged the people $50.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Ah! The benefits of higher education!

What's the difference between the "scrap value" of a running car versus the “scrap value” of a non-running car last time you checked?

The "scrap value" is determined based upon the weight of the scrap in question not whether the engine which constitutes scrap is running or not. The condition of the engine is irrelevant whether "steel is down or up"!

You don’t see a problem here maybe because you didn’t have money due you not paid to you. The law is clear dealers where required to notify buyers of the provision and then buyers could negotiate with the dealers regarding anything more than $50 value of their trade in. If the dealer did not inform you of the provision they violated the law and are subject to fines per violation for each their failures. There where 800,000+ cars scrapped as a result of the CFC assuming dealers only received $100 per car that is a theft from the consumer of up to $40,000,000.

You obviously have little knowledge of the auto scrap business or you would know that a recycler will come to you and pay you the going “auto scrap steel spot” rate, on Friday in Boston $125 a ton for any vehicle and will gladly do so for a dozen vehicles. You’d likely get a couple cases of beer or bottles of liquor in appreciation. The cost of transportation of scrap to the recycler is very often born by the scrap buyer. There is an entire industry of independent truck owners who contract with recyclers to transport scrap to there facilities. Even scrap recyclers make the effort to segregate out high value items such as good used tires, petroleum fluids, catalytic converters, alloy wheels etc. that create quite the differential between the auto scrap steel spot price paid and the overall value of their return on this investment. The scrap industry is a commodity business and the people involved make their profit on volume and the spread between what they pay for raw material and what theprocessed materials are eventually sold for. Their profit per unit remains fairly constant.

If the dealers sold the vehicles to an auto parts recycler as opposed to a scrap recycler the value of the condemned vehicles could be significantly higher than the scrap value and the vehicle value to the buyer would correspondingly be higher.

There is a subaru plant here in Lafayette....a honda plant in Marysville ohio, a toyota or nissan truck plant in southern INdiana, mb plant in alabama, bmw in one of the carolinas.

If you ask someone who works there I think you wil find they do a lot more than put a few bolts in.

Sure I'd rather that GM and Chrysler and Ford made cars that people would choose on their own to buy, but heck I would still like to be able to buy a new Studebaker too.

I don't want any of those companies to go under because of all the fine folks who work in them....but I suppose if they do that the japanese/american companies will pick up the slack.

The CFC was not mainly about saving fuel it was about giving the economy a boost and saving jobs.

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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC]

..I also have a 427 Cobra replica with an aluminum chassis.

Just wait until April when people have to report that money as income on their taxes

Yup it's going to be a cold day in hell!

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-Typos courtesy of my mobile phone.

The CFC was not mainly about saving fuel it was about giving the economy a boost and saving jobs.


i did not see that it did anything but send the bulk of tax dollars to another country

and a saved job is smoke and mirror gimmick did the unemployment go down in your state as a result if so i will stand corrected but i think not - jz

as in government programs, there are 'winners' and their are 'losers'.

Winners

Scrap yard recyclers
Auto Dealers
Banks and auto financiers

Losers

Car parts stores (until the new car gets a few years on it)
Tire Dealers
Auto repair shops

.....and those of us who operate older Mercedes Benz automobiles. CFC destroyed the engines. if the recyclers recycled the steel bodies, there were additional parts lost.

Nope I don't know much about the scrap business, I'm not in the scrap business are you? I know I got $250 for the last VW I junked because it ran. If it wasn't running I think they were going to give me $150 for it. I got nothing for the 420SEL I junked which did not run, but they did come and pick it up.

I'm just a consumer thats happy to get rid of worthless cars since I don't live in an area where its acceptable to keep them on my property. If someone will come and pick the car up for free and save me the trouble great, if they make $125 off it fine they need to eat to.


I know their is good money to be made in the junk and recyling business. But I'm in real estate, not scrap metal.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

i thought 20 MPG cars like MB were to be exempt for good fuel mileage maybe they changed it