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Brian Pasch

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cash-for-clunkers-we-can-helpThe consumer interest in the Cash for Clunkers program is getting red hot. If your dealership is not preparing for the Cash for Clunkers program start date in Late July you better get moving.

A number of consumers have been holding back to purchase a new car as they waited to see if the bill would pass the House and Senate votes.

The bill is now signed and a law so dealers can start to prepare and educate their staff on the program. Dealers should go to, the official dealer registration website for the voucher program.

The big problem for car dealers is that while the program starts officially July 1st, the NHTSA is stating that the program will not be implemented until Late July. The National Highway Traffic Safety Administration is calling the program Car Allowance Rebate System (CARS).

Car dealers will have to prepare for the "float" of monies that will be due to them as cars are sold. A car dealership selling 100 cars in the first 30 days could have close to a half a million dollars owed to them if the CARS takes longer than 10 days to pay them back. Aside from the money float issues, dealers need to prepare for the storage and salvaging of the cars that are traded.

The process and paperwork has not been defined for qualifying trade-ins yet so it looks like dealers will have to stockpile these cars until it is clear what paperwork and validation must be in place before the car can be scrapped. Insiders say that the approval process will not be immediate.

Cash for Clunkers: Holiday or Headache?

For a sales professionals in high demand brands (see below), Cash for Clunkers will be a holiday celebration. For dealer principles, this will be a compliance headache as well as added liability. From over 10,000 data points collected from the top 10 brands that consumers have indicated they will buy are:

  1. Toyota 18.2%
  2. Honda 14.7%
  3. Ford 13.3%
  4. Chevrolet 10.1%
  5. Nissan 5.4%
  6. Hyundai 4.1%
  7. Dodge 3.6%
  8. Volkswagen 3.3%
  9. Acura 3.2%
  10. Kia 2.9%

To view the top 20 list visit: Cash for Clunkers Top 20 List. Toyota dealers have hit the jackpot.

Cash for Clunkers Website

The website the Pasch Consulting Group was asked to create to help car dealers and consumers with the Cash for Clunkers program has been a great success. We are responding to over 100 emails and 200 calls per day from people asking about the Cash for Clunkers program.

For car dealers, we have created a National Cash for Clunkers Dealer directory and a Participating Dealer logo to display on your website. The directory is voluntary of course and will not replace the registration that dealers will have to do with the federal government. To be added to the directory follow these instructions: 3 Steps for CFC Directory

We have also made up some free CFC banners branded with your dealership car brands, if you want to use them in email blasts or on your website. Logos and banners are free. Banners can be downloaded Here.

Consumers Aware of Cash for Clunkers Program

On Friday June 19, 2009 we had over 65,000 visitors to the website which confirms that consumers are aware and ready to purchase a new car with their Cash for Clunkers voucher. This will be at least a 90 day sprint and with additional funding, this could run much longer.

For additional information on the Cash for Clunkers program, read our FAQ sheet which gets updated almost daily. Cash for Clunkers Answers

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