If you think the new “Cash for Clunkers” program is going to help you buy a new car, think again.  Our government’s latest, misguided attempt at saving the environment and boosting the economy isn’t all it’s cracked up to be.

What is the “Cash for Clunkers” Program?
 
Cash for Clunkers, officially known as the Car Allowance Rebate System (CARS), is a federal program passed by Congress and signed into law by President Obama will provide a voucher worth up to $4,500 to consumers trading in an old gas guzzler for new, more fuel efficient vehicle.  The program is effective beginning July 1, 2009 and ending on November 1, 2009 (or when the funding runs out, whichever comes first).

Sounds pretty good, huh?  Well… maybe not.  The government vouchers for $3,500 or $4,500 are in replacement of — not in addition to — the ordinary trade-in value of the vehicle.  If your trade is worth more than $4,500, forget it.  If your trade is worth less than the voucher, then the program might benefit you.  But, it’s only good for purchasing a new car, not a used one.  Purchasing a good, used car will likely save you more money overall than buying a new car with the voucher.

What’s the Catch?

Your trade must also be drivable, must have been made in 1984 or later, owned, insured and operated by you for one year, and must get 18 mpg or less city/highway combined.  The trade vehicle must be crushed, not resold.  (The idea is to get them off the road) If that’s not enough restrictions for you, there’s more!  You must purchase a new vehicle with a sticker price of $45,000 or less.  If you buy a new passenger car, it must get at least 4 mpg MORE than your trade vehicle.  If you buy a new SUV, minivan or small truck, it must get at least 2 mpg more than your trade.  (Larger trucks have different requirements and restrictions.)  Only one voucher is allowed per person.  Confused yet?  Visit the government’s website (www.cars.gov) or call a Women’s Automotive Solutions consultant for more information.

Who could benefit from this program?

Critics of this program (myself included) argue that this program won’t benefit most consumers. It doesn’t apply to used car purchases, and most people who drive “clunkers” do so because they can’t afford a brand new car in the first place.  However, there are a few folks who could take advantage of it:

1.  People who buy a new vehicle once in a blue moon, drive it until it almost dies, and then buy a new one again.
2.  Students or young professionals driving an old, college clunker who now have a good job and are ready to buy their first, new car.
3.  Parents who bought their teenager a piece of junk and now want a shiny new car for themselves.

The good news is that the voucher is in addition to (not in lieu of) any dealer incentives and rebates available on the new vehicle.   If you are thinking about taking advantage of this program, contact a Women’s Automotive Solutions consultant to see if you qualify and if the program is right for you.  Even if it’s not, Women’s Automotive Solutions will get you the best possible deal no matter what vehicle you buy – or what you trade in.

This email was sent to us from a future client, Adam Pack.  It really hits the nail on the head, so I wanted to share it (with Adam’s blessing, of course).  Thanks, Adam!

LeeAnn,

I like your style and your message.  You’ve got a kicken business model.  I checked out your site.   I like it all.  I will definitely use you when I go to buy or lease. I’ll also refer to anyone I know that is looking as an option to consider.  I’m sure you get objections like….”I can do that I’m in sales, etc. etc.”  I say bs.  It is much like getting a job.  Anyone may be good at business, sales, or just have good common sense but unless you eat, sleep, and breathe you are not in the know and are in a risky position to get taken advantage or innocently miss out.  A service like yours is golden cause you know how the system works and you work it each day.  Were someone going to get a car does it once every 3-10 years.  No one is good at doing something when they only do it once every 3-10 years.  Not only are you saving your clients $$ but you are giving them piece of mind.  I’ve bought cars in the past that from the moment I signed the paperwork I was haunted with the feeling that those [guys] screwed me over.  It stuck with me for years.    Car salespeople and dealerships are one of the least trusted people in the world.  So why would anyone chance a large capital expenditure that they will keep for years to trying to do it on their own.  You are an equalizer my friend whose purpose is for common good for man/woman kind!

 - Adam Pack

Kia is known for producing inexpensive cars with long warranties. That has been the basis of their success in the United States for 15 years. Producing exciting cars has not. Until now. Enter the 2010 Kia Soul, a fun, four-door boxy hatchback that is clearly designed to compete with the slightly larger Scion xB.

Taking a complete 180 from its traditional boring style, Kia makes the funky new Soul in wacky colors such as Java, Molten and Alien. Interiors are available in two-tone, houndstooth and even glow-in-the-dark upholstery. The interior space is quite impressive, given the Soul’s overall small size. High-mounted seats and a tall roofline offer even tall passengers sufficient head and legroom. Cargo room is significantly less than its Japanese competitors, but the Soul’s boxy shape can still haul reasonably large items.

The 2010 Kia Soul is available in four ridiculously named trim levels – Base, +, ! and Sport. The base model comes decently equipped with 15-inch steel wheels, rear drum brakes, air-conditioning, full power accessories, tilt steering, a 60/40-split rear seat and a four-speaker stereo with CD/MP3 player, satellite radio, USB and auxiliary audio jacks. The Soul + has a larger engine, 16-inch alloy wheels, rear disc brakes, cruise control, keyless entry, tinted rear windows, a height-adjustable driver seat, Bluetooth, and steering-wheel-mounted audio controls. The Soul ! adds 18-inch wheels and two-tone upholstery. The top level Soul Sport has an upgraded audio system, a sport-tuned suspension, red-black two-tone interior and special exterior trim. A sunroof is optional on the ! and the Sport. Standard safety equipment includes antilock brakes, stability control, front side airbags and side curtain airbags.

The quirky Soul is equally fun to drive, staying reasonably tight and planted in the corners. The ride is comfortable at “tooling around town” speeds, but can get a bit choppy on the highway. The based Soul offers a 1.6-liter four-cylinder engine that puts out 122 horsepower and 115 pound-feet of torque. The +, ! and Sport trim levels get a 2.0-liter four-cylinder with 142 hp and 137 lb-ft of torque. The base model is available only in a five-speed manual, but the upgraded trims offer a four-speed automatic. The 5-speed manual Soul Sport reportedly goes from zero to 60 mph in 8.8 seconds. Not too shabby for a lunch box on wheels.

(Photo courtesy of Kia Motors.)