The Tribune Democrat, Johnstown, PA

July 24, 2009

Cash for Clunkers hits roadblock

By RANDY GRIFFITH

Some local car dealers are looking forward to a new federal program that pays cash for old gas-guzzlers traded in for new, fuel-efficient models.

Trouble is, the Car Allowance Rebate System program officially started Friday.

Delays in getting information to dealers and a backlog of businesses trying to register Friday had the operators of at least two local businesses pulling their hair.

“When they hear ‘starting today,’ the public thinks they can do this today,” said Jim Cover, vice president of Cover Chevrolet in Windber.

“Once they get the kinks worked out, I think it will be a good program.”

By noon Friday, Cover had been online for five hours trying to register the dealership for the CARS program, also known as Cash for Clunkers.

Under the program, those trading in cars that get 18 miles per gallon or less can receive up to $4,500 toward the purchase of a more fuel-efficient new car.

Customers have been inquiring about the program for the past week or so, said Forrest Spangler at Spangler Subaru in Richland Township.

Until Friday, he had few answers for them.

“The rules have just been published this morning,” Spangler said.

While most new cars qualify, customers have been confused about rules for their trade-in cars.

Vehicles rated higher than 18 mpg will not qualify as trades.

If a customer thinks a vehicle is worth more than $4,500 on a trade, additional investigation is warranted before applying for the Cash for Clunkers, said Rick Cover, Cover Chevrolet president.

“There is a misconception,” Rick Cover said.

“People think there is a trade-in allowance plus the CARS money. “The (federal money) is your trade-in allowance.”

The law requires gas guzzlers acquired under the program to be crushed for scrap, not resold, he said.

Cash for Clunkers was introduced as a way to boost the auto industry and reduce energy consumption.

“I think it’s going to be a good program for both the businesses and the consumer,” Rick Cover said.

“I hope it helps everybody,” Spangler said.

“Everybody could use a little bit of help. It has been a long 10 months.”