Dealer groups begin own 'Clunker' program - - Aftermarket Business - Wholesaler, retailer automotive parts

Dealer groups begin own 'Clunker' program

Source: Aftermarket Business

The Federal Cash for Clunkers incentive burned through $1 billion in a week as consumers rushed to trade in gas guzzlers for more efficient models, spurring Congress to add another $2 billion to the program. But many consumers hoping for the $4,500 credit discovered that their older cars did not quality for the program, or that they couldn't afford to purchase a brand new car, even with the credit.

Now, a group of approximately 50 large auto dealers have come up with their own Clunkers-style plan that is open to a larger number of consumers, and should be easier on the salvage and used vehicle markets. The Automotive Stimulus Plan (www.automtoivestimulus.org) provides up to $4,500 in incentives for customers who are buying more fuel-efficient vehicles, but consumers are able to buy used vehicles with the credit, and their trade-ins aren't scrapped. Under the federal program, dealers were required to scrap the clunkers permanently.

"We thought this was a good opportunity to broaden the reach of the program," says Brian Benstock, vice president and general manager of Paragon Honda & Acura in Queens, N.Y. "There are quite few customers who wanted to take advantage of Cash for Clunkers, but didn't qualify under the government rules."

"Only about ten percent of customer qualified for Clunkers," adds John Malishenko, operations manager at Germain Automotive, which has dealerships in Florida, Arizona, Ohio and Arkansas. "We liked the merits of the program, so we looked for a way to expand eligibility but stay consistent with the things that the customers liked about Clunkers."

Under the dealer program, which was scheduled to run through the fall, customers can purchase a new or pre-owned vehicle with a minimum of 2mpg of improved fuel economy. The vehicles had be a 2006 model or older; operable; and owned and registered for at least six months.

The other significant difference is that customers can purchase a used vehicle, something not allowed under the government program. The dealers hope the new program will help them continue the sales momentum they gained with Cash for Clunkers.

"This isn't going to be as big as the government program, but we feel we're going to get an increase in foot traffic and Web traffic," says Scott Gruwell, sales director at Courtesy Chevrolet in California and Arizona.

post a comment
Your email address will NOT be published.
appears with your comment
read our privacy policy
Note: does not support HTML
All comments submitted are subject to review, and may be delayed before posting. We reserve the right not to post comments.
Survey
How do you use April's Car Care Month?
I offer vehicle inspections at my shop.
I am a distributor and I encourage increased sale of vehicle maintenance parts.
I hang Car Car Month signage and have pamphlets available to customers.
I host lane-check events or Car Care Fairs.
Other
I do nothing for Car Care Month.
I offer vehicle inspections at my shop.
10%
I am a distributor and I encourage increased sale of vehicle maintenance parts.
19%
I hang Car Car Month signage and have pamphlets available to customers.
15%
I host lane-check events or Car Care Fairs.
2%
Other
13%
I do nothing for Car Care Month.
42%
View Results
Thank you for sharing your opinion with Aftermarket Business!
E-News envelope

Check the e-newsletter(s) you would like to receive.

Rollover each title for information.

Distribution - Anyone interested in auto parts issues will enhance their business by subscribing to our Distribution newsletter from Aftermarket Business. Published every Tuesday and Friday.
Collision Repair - Our Collision Repair newsletter from ABRN provides up-to-date news, innovative products, technical discussions and shop management features designed to enhance your business. Published every Tuesday and Friday.
Service Repair - Sign up today for Service Repair news from Motor Age. Benefiting auto technicians, this e-newsletter provides the latest news and analysis, technical automotive service information and business management tips. Published every Monday and Thursday.
Certified Technician - Professional automotive technicians and parts distributors seeking aftermarket products should sign up for the Certified Technician e-newsletter. This is your source for information about the latest tools, equipment and parts that can help you better service your customers. Published every Monday and Thursday.

Source: Aftermarket Business,
Click here