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Cash For Clunkers Auto Sales Stimulus and Twitter Feed

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Cash For Clunkers Auto Sales Stimulus and Twitter Feed

This group is for all things related to the Federal Government's Cash For Clunkers Auto Sales Stimulus legislation which creates a $1,000,000,000 fund to drive increased new car sales.

Website: http://twitter.com/cashforclunker
Location: Washington, DC
Members: 91
Latest ADM Activity: Sep 14, 2011

Cash For Clunkers Facts and How It Works

Curious exactly how the Cash For Clunkers bill works? This handy chart and fact sheet provide all you need to know about trading in a beater Isuzu for a shiny new car.

At first, a look at the chart gives the impression there's a lot of money to be made by trading in your old car for a new one. Unfortunately, the compromises in this bill make it unlikely many people will be able to utilize it and save a great deal. There are two factors working against making this a worthwhile proposition and they both have to do with the logic of the bill.

First of all, operable vehicles are required and there aren't many people driving around with vehicles worth less than $1,500. Many old crappy cars, in fact, can still demand up to $2,500 on the open market. This means you're going to get, max, $2000 for your trade-in. The least valuable qualifying cars, of course, are actually the more efficient compact vehicles, which makes getting the necessary 10 MPG improvement unlikely.

The second problem, stemming from the first, is quantifying the number of people who actually drive around in cars worth less than $2,500 and can actually afford a new car. Our instinct tells us there aren't many people. This means people taking advantage of the program will, typically, have to be excited by the prospect of saving $1,000 or $2,000. These people should already have been swayed by intense discounting from automakers in recent months.

This isn't to say there aren't people who won't be able to get money from the program because, say, they have an old light duty truck and have been meaning to trade up to a newer car for a while. But the greatest number taking advantage of this deal may be people who can afford a new car and have, for one reason or another, decided not to buy one. These people will likely be lured in by dealers combining the $4,500 voucher with $2,000 in additional savings for big numbers like "$6,500 off a new Focus" that ignore the actual original value of the trade-in.

Either way, the promise of raising car sales by 1,000,000 units this year depends heavily on people with either poor mathematical abilities or an irrational fear of new car dealerships.

Cash For Clunkers Fact Sheet
"The CARS program is established at National Highway Traffic Safety Administration under the Department of Transportation (DOT). DOT is required to promulgate regulations to implement the program within 30 days. The program will run for one year from the date the regulations are promulgated. The program is authorized for $4 billion which will provide for the purchase of approximately one million new vehicles.

Older Trade-In Vehicles:
* Must be in drivable condition;
* Have been continuously insured to the same owner for at least one year immediately prior to trade-in;
* Manufactured in model year 1984 or later; and
* Have a combined fuel economy of 18 mpg or less.

New Vehicles (divided in to 4 categories) - The mpg values are EPA combined city/highway fuel economy as posted on the window sticker of the new vehicle.

Passenger Cars: New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.

Light-Duty Trucks: New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.

Large Light-Duty Trucks: New large trucks (pick-up trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.

Work Trucks: Consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. Vouchers are limited to 7.5 percent of total funds. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also "trade down," receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 – 8,500 pounds."

Twitter.com/CashForClunker RSS Feed

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Comment by Ralph Paglia on June 25, 2009 at 12:08pm
June 24, 2009 - WASHINGTON -- President Obama has signed the Cash for Clunkers legislation providing a guaranteed trade-in value between $3500 and $4500 to car buyers who trade-in their older cars or trucks for a new car, truck or SUV that meets the program fuel efficiency requirements.

The program will have a government administration initiative that has been named C.A.R.S. or Car Allowance Rebate System (CARS) and will be run by the NHTSA, which will issue payments through NHTSA registered car dealers.

Car buyers get the benefit of $3,500 or $4,500 paid to dealers who scrap their trade-in.

Rules for dealer participation in the program will be issued by the NHTSA within 30 days of June 24, 2009.

From: http://CARS.gov
President Obama signed into law a program NHTSA is calling the Car Allowance Rebate System (CARS). This is a government program that helps you purchase a new, more fuel efficient vehicle when you trade in a less fuel efficient vehicle. See the Frequently Asked Questions for more details.

Under the CARS program, NHTSA is charged with rules for program implementation in 30 days. You may want to contact your local dealer in mid-July.

REGISTER YOUR EMAIL WITH NHTSA FOR UPDATES
When you complete the form by clicking on the linked text above, you should receive a similar confirmation to what I received below:
"Your information has been submitted. Thanks!
A confirmation email is on its way to ralph_paglia@adp.com and should arrive shortly.

Note: To ensure proper delivery of our emails, take a moment now and add us - info@cars.gov - to your address book, trusted sender list, or company white list.

email ralph_paglia@adp.com"


5 Important Things to Know
Your vehicle must be less than 25 years old on the trade-in date
Only purchase or lease of new vehicles qualify
Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
You don't need a voucher, dealers will apply a credit at purchase
Check the http://CARS.gov site frequently for the most recent updates from the government.


What Does The Deal Look Like?

You can click on the chart above to open a full size view in a new window

The following questions (bold) and answers (italics) are based on the relevant provisions within the Consumer Assistance to Recycle and Save Act of 2009.

What is the Car Allowance Rebate System?
The Car Allowance Rebate System is a new program from the government that will help you pay for a new, more fuel efficient car or truck from a participating dealer when you trade in a less fuel efficient car or truck.

How do I know if a dealer is participating in the program?
The law requires dealers to be registered to participate in the program. We are moving as quickly as possible to register interested dealers. As dealers are registered, we will list them on this website. We will continue to update this list during the life of the program. Meanwhile, you may wish to contact dealers in your area to ask whether they plan to participate in the program.

What is NHTSA doing to implement the program?
As required under the law, NHTSA will publish rules for the program in 30 days. We are currently working closely with manufacturers, dealers, and disposal facilities to get a workable, effective program up and running.

Do I need to get a voucher or sign up for this program?
No. You do not need a voucher and you are not required to sign up or enroll in this program. Participating new car dealers will apply a credit, reducing the price you pay at the time of your purchase or lease, provided the vehicle you buy or lease and the vehicle you trade in meet the program requirements. The dealer will then obtain reimbursement from the government.

How do I know if my car or truck is an eligible trade-in vehicle?
There are several requirements (but you also have to meet certain conditions for the car or truck you wish to buy). Your dealer can help you determine whether you have an eligible trade in vehicle. Your trade-in vehicle must have been manufactured less than 25 years before the date you trade it in have a “new” combined city/highway fuel economy of 18 miles per gallon or less, be in drivable condition, and have been continuously insured and registered to the same owner for the full year preceding the trade-in. PLEASE NOTE: Work Trucks (i.e., very large pickup trucks and cargo vans) have different requirements.

How do I find out when my vehicle was manufactured?
The month and year of manufacture (e.g., 1-96 (January 1996)) appear on the safety standard certification label that is located on the frame or edge of the driver’s door in most vehicles.

How do I find out the combined city/highway fuel economy rating of my trade-in vehicle?
Go to http://www.fueleconomy.gov/feg/sbs.htm and click on the model year of your vehicle, the make, and then the model. Under the words "ESTIMATED NEW EPA MPG" in the red banner, there is a red number with the word "COMBINED" under it. That is the new combined city/highway fuel economy for your vehicle. You may then enter the make, model, and model year of a new vehicle you may want to buy and see its combined MPG for comparison.

Does the program apply if I want to lease a vehicle, or must I purchase a vehicle?
Under the program, you may purchase a new vehicle or lease a new vehicle, provided the lease period for the new vehicle is at least five years.

Is there a cap on the price of the vehicle I can buy or lease under the program?
Yes. The manufacturer's suggested retail price cannot exceed $45,000.

Does the program apply if I want to buy a used car?
No. The program does not apply to the purchase of used vehicles.

What is the amount of the credit?
The amount of the credit is $3,500 or $4,500, and generally depends on the type of vehicle you purchase and the difference in fuel economy between the purchased vehicle and the trade-in vehicle. Different requirements apply for work trucks.

In addition to the credit, will I get the full value of my trade-in vehicle?
No. The law requires your trade-in vehicle to be destroyed. Therefore, the value you negotiate with the dealer for your trade-in vehicle is not likely to exceed its scrap value. The law requires the dealer to disclose to you an estimate of the scrap value of your trade-in vehicle.

I don’t drive an American car but I would like to trade in my old car for a newer, more fuel efficient one. Is this program only for American cars?
No. You may trade in or buy a domestic or a foreign vehicle.

I have a truck and I cannot find its fuel economy rating. Is it an eligible trade-in vehicle?
Maybe. Some trucks, such as work trucks, were never rated for fuel economy. For these trucks, age is the only criterion for determining whether they are eligible trade-in vehicles. If you have one of these trucks, it must be from model year 2001 or earlier, but also the date of manufacture must be less than 25 years from the date you trade it in, to be an eligible trade-in vehicle. Other restrictions may also apply.

I just traded in my old car for a new vehicle last month. Will I get some money back?
No. The program does not apply retroactively.

As a service to ADM Professionals, we uploaded the
ACTUAL CASH FOR CLUNKERS LEGISLATION
in a PDF document for you to download
and print a hard copy, frame for posterity,
or even have it available in a binder or
other hand-out format at your dealership:
CARS-Law.pdf


ADP Digital Advertising is offering a "Turn Key" Cash For Clunkers Digital Marketing Program ofr dealers who would like to drive more showroom and website traffic, phone calls and leads by leveraging public interest in the Cash For Clunkers CARS government funded automotive sales stimulus program. You can simply fill out the lead form at www.SEMdealer.com, or if a Ford or Lincoln Mercury dealer use the form at www.FLMDigital.com or call the ADP Digital Advertising team at 888-243-2935. The promotional program ADP is offering includes three packages:

1. CFC Headquarters Digital Advertising Campaign Package - $10,000 a month
This package includes a Cash For Clunkers dealership VIDEO microsite with a Cash For Clunkers keyword enriched domain name, locally formatted SEO services, AdTracker toll-free number, lead form sourcing ID, $2500 a month in paid Search Engine Advertising and $5000 a month in Behavioral Targeted display advertising, $2500 a month in Website Placements of Display Advertising (includes Kelley Blue Book), animated Flash based advertising creatives, Double-Click hosting with Floodlight and Spotlight tracking and reporting of both Post-Click and Post-Impression Key Buying Activities (KBA), along with Omniture SiteCatalyst reporting and tracking application for a full suite of metrics.
A 3 month ADP Digital Advertising agreement is used for this package.

2. CFC Participating Dealer Digital Advertising Campaign Package - $5295 a month
This package includes a CFC dealership VIDEO microsite with a Cash For Clunkers keyword enriched domain name, AdTracker toll-free number, lead form sourcing ID, $1500 a month in paid Search Engine Advertising, $2500 a month in Behavioral Targeted display advertising, $1000 a month in Kelley Blue Book website advertising, animated Flash based advertising creatives, Double-Click hosting with Floodlight and Spotlight tracking and reporting of both Post-Click and Post-Impression Key Buying Activities (KBA), A 3 month ADP Digital Advertising agreement is used.

3. CFC Dealer Microsite - $595 a month
Includes a CFC dealership VIDEO microsite with locally formatted SEO services, AdTracker toll-free number, lead form sourcing ID and Google Analytics installed for reporting and tracking. This package requires 12 month ADP Digital Advertising agreement for microsite only, with the option to change the microsite's theme after the CFC program expires to any of the 35 microsite designs at www.DealerMicrosites.com ..

Here are a few images of the ADP Digital Advertising Cash For Clunker Dealer Advertisements, you can click on each image to open a window with the animated Flash advertisements running in full glory as they do on a web site:

Comment by Ralph Paglia on June 25, 2009 at 12:00pm
DTG - Good sound advice, thank you for the guidance. I will take steps to get the dealer's landing page verbiage changed. Something as simple as "One of..." or "participating" instead of "Official" would go a long ways towards reducing likelihood of a problem without reducing the message's meaning.
Comment by David T. Gould on June 25, 2009 at 7:45am
Words of caution from DTG:

First paragraph from - www.CashForClunkerNow.com

"Thorobred Chevrolet is Arizona's official "Cash For Clunkers" authorized dealership." Strong statement. If it is true, it deserves a bigger digital presence (microsite separate from KBB valuation)... If it is not... Dealers should be careful to stay within advertising guidelines (state / federal) to not draw more heart ache than profits while hurrying to be first to the gate... GOOD SELLING! DTG
Comment by David Ruggles on June 25, 2009 at 4:59am
My father is fond of saying, "A camel is a horse designed by committee," and unfortunately this is what this bill is. Originally Cash for Clunkers it evolved into Cash for Guzzlers. Wait 'til everyone figures out that their 12 mpg $4500. ACV trade doesn't qualify for an gov't money because it has to go to the crusher, and the dealer can't resell it. Yes, the trade AVC amount gets subtracted from the gov't voucher. The vehicles traded in to be crushed are called "clunkers" or "guzzlers" by some, but are called "inventory" by the BHPH industry. I imagine there will be some impact on their business!
Comment by Ralph Paglia on June 19, 2009 at 7:06am
ADP Digital Advertising has created several online advertising campaigns and deployed them for several dealers already. We have Search Advertising, Display Advertising using BT, RT and Site Targeting as well as Microsites and vanity URL's that are templated and ready to go... You can see an example of a dealership landing page that we modified from a Cobalt GM website, then attached a vanity URL to at www.CashForClunkerNow.com for Thorobred Chevrolet in Chandler, AZ. And, you can see an example of our animated Flash based display advertising at https://apps.bzresults.net/bcc/adbuilder/previewSwfsForAdSet?adSetI...
Comment by Ralph Paglia on June 18, 2009 at 6:38am
The Cash For Clunkers Act is part of a much larger appropriations bill and has been passed by both the House of Representatives and the US Senate. The overall $106 Billion (but, who's counting any more?) Appropriations Bill must be signed by President Obama, which should happen as soon as tomorrow, but probably next week. The CFC Act will expire on September 30, 2009 and has enough funding for the sale of between 200,000 and 230,000 new cars. It was originally supposed to be a 1 year and $4.5B program, but has been cut down to a 90 day and $1B program. Most experts I know, and my own opinion, is that a relatively small number of dealers will jump all over this opportunity and use up all the money before September 30, 2009. You can expect to see the more capable large dealer groups like AutoNation, Penske, Sonic, etc. come out with a major marketing and advertising blitz to snag as much of that $1 Billion dollars away from other dealers who are asleep at the wheel or just too lazy to have had their plans and campaigns in order and ready to go at the moment the bill is signed into law... Think of it like the Oklahoma Land Rush of the late 1800's... A mad dash to claim your stake.

At up to $4,500 on the hood of any vehicle that gets at least 10% better MPG than the one the customer currently drives, despite what anybody says, qualifying for the $3,500 to $4,500 for each deal is not going to be much of a problem. Since the CFC Act allocates a specific amount of money to each category of vehicle, I personally believe some categories will be fully tapped by the smarter and more effective dealerships by the end of August.

My team is already running campaigns for several aggressive dealers who will have dozens of deals lined up and ready to go the moment the bill is signed into law... Preparing a landing page is easy. Check out www.CashForClunkerNow.com which is the landing page converted from a standard Cobalt website trade-in form by Thorobred Chevrolet in Phoenix.
Comment by Ralph Paglia on June 17, 2009 at 9:56pm
Thursday, June 17, 2009 - The House and Senate have agreed on a $106 billion wartime spending bill that includes $1 Billion dollars for the Cash for Clunkers Bill.

This is BIG news for consumers who are following the bill because many felt that the Senate would hold up the bill or pull it from the spending bill.

The bill will be coming out of negotiations next week and prepared to be signed by President Obama.

According to Detroit News:


"House and Senate negotiators reached agreement late Thursday
on a $106 billion wartime spending bill that includes $1 billion for a "cash
for clunkers" program to boost auto sales.

The House and Senate are expected to pass the compromise version of the
spending bill next week. But the $1 billion set aside for the auto-purchase
program is far short of the full cost of such an effort, estimated at $4
billion. The $1 billion is expected to fund the program through Sept. 30,
the end of this fiscal year, according to two congressional sources close to
the negotiations who asked to remain anonymous."
 
 
 

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