Now is the time to take advantage of Cash for Clunkers. New car dealers are realizing that interest is cooling, there is a lot of money left in the Cash for Clunkers program, and manufacturers are going to start pushing hard to clear out models that have been largely overlooked. Follow these tips for getting the top dollar under Cash for Clunkers.
Basically, Cash for Clunkers gives you $3500 to trade in your used car as long as it is 25 years older or newer and gets 18 mpg or less, according to EPA stats for when it was sold new based on the new fuel economy guidelines. The car you are buying has to get 22 mpg or more in average fuel economy. If the new car gets 10 mpg better, you are eligible for $4500 under the Cash for Clunkers program. Complete information is available at www.cars.gov.
The Cash for Clunkers program burned through its first $1 billion in a week’s time. Then, Congress appropriated another $2 billion. But, according to the Department of Transportation, only about $400 million was spent in the following 10 days after the extra money was approved. That leaves about $1.5 billion as this article is being published on Aug. 16, 2009.
Here is how you can optimize the trade-in value of your clunker under the Cash for Clunkers program.
- Shop the off-brands for better prices. The Ford Focus and Toyota Corolla are white hot right now. Consider the Mazda3, Nissan Sentra or the Hyundai Elantra. VW tends to run a little more expensive, but you can find deals. If you want a Ford Escape, consider a Mazda Tribute instead. Information about new cars is available at cars.about.com and trucks and SUVs are covered at suvs.about.com and trucks.about.com.
- Dealers have invested a lot of marketing money in Cash for Clunkers. If you stay away from Ford and Toyota dealers, you are likely to find dealers who feel they aren’t going to recoup their marketing investment. They will be ready to deal.
- Negotiate as if you are not taking advantage of Cash for Clunkers. Tell the sales person you don’t have a trade in. Pretend you’re keeping your car for your son or daughter. Whatever you do, don’t mention Cash for Clunkers. You’re going to get a better deal on your new car.
- Why should you not mention your trade-in? Well, Cash for Clunkers customers are being treated differently. Dealers rightly assume that Cash for Clunkers customers are going to be happy getting $3500 and won’t want more from the deal. Plus, you should never mention a trade-in until the end of any negotiating process, as Aaron Gold, the About.Com guide to Cars points out in his article http://cars.about.com/od/buyingadvice/a/trade_in.htm on new car negotiations.
- Only at the very end of the process should you mention Cash for Clunkers. There is no way the dealer can go back on what he or she has offered you at this point. If the dealer does, then walk away from the deal.
- Walking away from the deal puts you in a strong negotiating position at the next dealer you visit. You will already have a complete set of numbers worked out for you. See if the next dealer can match the numbers or better them.
- When you should mention Cash for Clunkers. Some carmakers are offering special incentives tied into Cash for Clunkers, such as lower financing or matching payments. These deals are fluid and I can’t hope to cover everyone. However, do your homework. See if the numbers work to your advantage. They have for some readers.
