Many Quad-Cities area car dealerships are experiencing a surge in sales following Friday's release of the official rules for the Cash for Clunkers program.
"Starting on Friday it kind of really lit up," said Steve Pauley, general sales manager of Reynolds Ford, East Moline. "We've had a lot of inquiries about Cash for Clunkers."
He estimated the dealership has received five calls every 30 minutes from customers wanting to know if their car qualifies. For the month, Reynolds has sold almost 20 cars through the program.
Although the program began July 1, official rules were not worked out until Friday. The federal government has set aside $1 billion for the program, called the Car Allowance Rebate System (CARS). It is scheduled to run until November or until the money runs out, whichever comes first.
Peter Kautz, general sales manager of Key Auto Mall in Moline, said the latter will happen before the former and may happen by the end of July. "It can go real fast," he said.
Rex Pauley of Sexton Ford Sales, Moline, said he was getting so much business because of the program and spending so much time getting his dealership ready that he had little time to discuss it.
"We're jammed with customers," he said.
Jill Green of Green Chevrolet said her dealership sold 26 cars with the program last weekend. More people were interested but did not qualify. "Most bought cars anyway," she said.
The Cash for Clunkers program has not been without its own clunkiness, however; dealers have to go through several steps to qualify, and the program's Web site crashed Friday. Ms. Green said it took her dealership from 6 a.m. to 6:30 p.m. to register.
Problems notwithstanding, dealers are positive about the results.
"It's actually been a huge success so far," Mr. Kautz said. On Saturday Key sold five cars through the program, he added. Since the beginning of the month, Key has sold about 20 cars through the program.
Mr. Kautz said people have brought in everything from a Toyota truck with 300,000 miles on it to a Ford from the 1980s.
"As long as it's drivable," Mr. Kautz said.
In return, many people shopping at Key are buying G series Pontiac passenger cars like the G3, G5, and G6, he said.
At Reynolds Ford, people have been taking home everything from a Ford Ranger to a Ford Escape. "It's a pretty good mix," Mr. Pauley said.
Zimmerman Honda in Rock Island has sold about 20 vehicles through CARS, said R.C. Rogers, sales manager. The most popular purchase so far has been the Honda Civic.
Jim Essig, owner/manager of Essig Motors, Aledo, said he started getting orders weeks ago, but did not start the actual sales until the guidelines came out Friday. He said three people have taken part since then.
In exchange for a Mercury van, a Chevrolet Blazer and a Jeep Cherokee, he has sold a Pontiac Vibe, a Dodge Caliber and a Jeep Patriot, Mr. Essig said.
The program requirements and restrictions are numerous and can be complicated. "Most people are informed, but most are still confused about the requirements they have to provide," Mr. Pauley said.
Many dealers are offering additional incentives to sweeten the deal.
"All the manufacturers are stepping up," Ms. Green said.
She said if a new car is priced at $13,000, with $4,500 off from the clunkers program and an additional $1,000 rebate, a new car could cost less than $8,000. "I don't know the last time that has been available," she said.
At Essig, the person who bought the Patriot was able to get the $21,785 vehicle for about $9,500 less because of the program, a manufacturer's rebate, a discount and other perks, Mr. Essig said.
Shoppers at Key also can get a rebate and can get vehicles at suppliers' prices through July, Mr. Kautz said.
At Zimmerman, a customer could see as much as $6,000 or $7,000 shaved off the sticker price, counting the program bonus and manufacturer incentives, Mr. Rogers said.
"Trying to get those vehicles off the road, it's going to be good in the long run," Ms. Green said.
Other dealerships were contacted but could not be reached for comment Monday.
Clunker check list Have a clunker of your own? Here are the requirements in order for it to qualify for the Cash for Clunkers program:
* It must be a 1984 model or newer
* It must get 18 miles per gallon or less in combined highway/city rating — based on the "Estimated New EPA MPG" ratings available at www.fueleconomy.gov.
* The vehicle needs to be drivable, insured and licensed for at least a year.
For more information, visit. www.cars.gov.
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