Per capita, Minnesota drivers traded in the most clunkers. At a voucher average of $4,205, an estimated 7,178 vehicles were traded in. North Dakota and South Dakota were close behind, followed by the upper midwest and New England states.
North Dakota dealerships estimated $3.3 million in sales and 785 trade-ins.
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“The program was very good for the customer, good for us and good for Ford Motor Company,” said Brent Wolfe, president. “It drew a lot of traffic to us, so we were happy with it.”
Although Wolfe said he had a lot of traffic through his doors, many of those potential sales didn’t meet government requirements.
The trade-in vehicle had to:
• Be in drivable condition;
• Be registered in the owner’s name and insured consistent with state law continuously for at least one year, immediately prior to the trade-in date;
• Be manufactured less than 25 years before the month the trade-in was made;
• Have a combined miles per gallon of 18 or less.
There were seven trade-ins made in Lidgerwood as part of the federal program. The seven vehicles ranged from a 1987 Ford F150 to a Jeep Cherokee. One of the requirements for the program is the clunkers must be made undrivable and not resold.
“All of [the clunkers] are pretty tired and have seen better days,” Wolfe said. “The actual trade-in value for these vehicles would have been $500 to $1,500, but our customers received $3,500-$4,500 credit as part of the program.”
The only problem most dealers had with the Clunkers program was the administration side. Wolfe said the first time he entered a vehicle into the system it took him six to seven hours to complete. Dealers had forms they needed to scan including proof of insurance and registration. The rule book was 2 inches thick, Wolfe said.
Although there are seven clunkers on the lot, Wolfe Ford hasn’t received official notification the vehicles have been approved, but they also haven’t been rejected either. Wolfe wasn’t too worried as it may take 30-90 days for his dealership to be reimbursed the credit. The first time any federal program is instituted it takes time for the paperwork to move more efficiently, he said.
Throughout the country dealers shared the same concerns. But as a boost to the economy, most felt the Cash for Clunkers program was a success. Congress had set aside $3 billion to run the program. As the program came to a close last week, applications worth $2.877 billion were submitted.
right wrote on Sep 11, 2009 4:34 PM:
Approach With Caution wrote on Sep 8, 2009 7:09 AM:
Don wrote on Sep 7, 2009 1:30 PM:
sloane wrote on Sep 4, 2009 11:00 PM:
Dr. John Tantillo has a marketing blog on which he does a weekly brand winner/loser post - in one he named the Cash For Clunkers program the Brand Loser--because the program wasn't thoroughly thought out--unclear rules and regulations as far as eligibility, and a failure to foresee just how high the demand would be. "A great sales promotion is ultimately a Brand Loser if it´s not guided by solid brand management." "