<img src="http://www.joplinglobeonline.com/images/zope/extra.gif" border=0>Incentive plan saves couple $4,500 on new car<font color="#ff0000"> w/ Cash for Clunkers info</font>

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July 28, 2009

Anonymous The Joplin Globe Tue Jul 28, 2009, 10:20 PM CDT

By Colby Williams

news@joplinglobe.com

Armed with the federal government’s $4,500 voucher, Kenny and Dianne Arbuckle turned their weathered SUV into a 2009 Honda Accord.

The couple own a sod farm about six miles outside Oxford, Miss. The 1995 GMC Suburban that they drove to Joplin to visit their daughter had 150,000 miles on it.

This week’s trip to Joplin was its last, however. After taking advantage of the Car Allowance Rebate System, better known as “cash for clunkers,” the Arbuckles will drive home in a car that gets better than twice the mileage.

“I’m really excited about getting a new car,” Dianne Arbuckle said. “Probably if this hadn’t come out, I wouldn’t have traded right now.”

“I am, too — for the gas mileage part of it,” said Kenny Arbuckle, whose daughter works at St. John’s Regional Medical Center in Joplin. “I wasn’t pressed to do it, but I called up here and they had a better deal.”

The Arbuckles began considering a swap about a year ago but found that their Suburban’s trade-in value was not enough to make a deal. Kenny Arbuckle called all around in Mississippi and even checked Web sites in surrounding states. With the deal they found in Joplin and the CARS incentive, the Arbuckles decided that Monday was the right time.

The 2009 Honda Accord, according to the Web site fueleconomy.gov, gets 25 miles per gallon (combined city and highway), more than twice the 12 miles per gallon rated for a 1995 GMC Suburban. That means a round trip from Oxford, Miss., to Joplin, about 680 miles, will cost about $63 in gas now, at $2.30 per gallon, compared with about $130 in the Suburban.

Inundated

The Arbuckles are among millions of car owners wondering if this is the right time to make a trade.

The CARS hot line reports receiving 45,730 calls nationwide over the weekend. The CARS Web site already is approaching 4 million visitors so far. And, the program didn’t officially kick off until Monday.

“We’re all kind of holding our breath and crossing our fingers,” said Steve Miller, sales manager at Roper Kia in Joplin. “We have several deals in waiting right now. They want to make sure the car they have qualifies and the car they’re picking out works for them.

“What we see the most of is the ’90 models with 150,000 to 200,000 miles. Cars that are pretty much used up, those are the ones we are seeing first.”

Roper Kia has had several trade-ins, Miller said Tuesday, including an old Dodge pickup and an older van, neither of which would be worth more than $1,000 to $1,500 without the incentive. Each of the owners in those instances qualified for $4,500.

The CARS bill started out requesting $4 billion for the vouchers, but that eventually was reduced to $1 billion.

One local dealership worries that $1 billion won’t go far enough.

“I’m not sure how long the billion dollars will last, but it has generated some business,” said Gary Kratz, sales manager at Pittsburg Ford-Mercury-Lincoln in Pittsburg, Kan. “I’m surprised there are so many people coming in and really looking at it. Our business has been pretty good for the last couple of months, but this helps somewhat.

“I don’t know how quick the government will pay us, so as of right now I don’t know if this will be a good idea or not. It’s maybe a shot in the arm, but it’s not by any means a long-term remedy.”

Other local dealers are optimistic about the program.

“The program seems to be going well,” said Jared Jefferson, a salesman at Frank Fletcher Toyota in Joplin. “It’s a real customer-friendly program. We’re getting lots and lots of people in. These cars that they’re trading in have a real value of anywhere from $500 to $1,000, and they’re getting $3,500 to 4,500.”

Bill Hughes, general manager at John Hoffer Dodge in Joplin, was unavailable for comment Tuesday. In a statement issued last week, he said his dealership is offering to add another $4,500 to the government’s incentive for qualifying vehicles.

Only two hours into the business day on Monday morning, Roper Honda reported selling four vehicles because of the program. At that time, around 16,000 dealerships had registered nationwide.

Fix or trade?

For some, saving money is not the only factor when making the decision to trade.

Dan Eberle is the interim director of the Missouri Alternative and Renewable Energy Technology Center at Crowder College, and he drives a Toyota Prius. Eberle said he has saved around $3,000 on fuel since 2004. He does not necessarily recommend buying new, fuel-efficient vehicles, however.

“If it is money we are trying to save, it almost always makes sense to fix rather than toss,” Eberle said of vehicles. “If it is energy that we want to save, the best thing to get economical gas mileage is to drive slower and less often. In my Prius, I get over 55 mpg at 55 mph but only 45 mpg at 70. My car lasts longer. It takes more time to drive but saves fuel.”

Eberle also said that scrapping an old car and purchasing a new one is not worth it unless purchasing a new car was already in the plans.

“The fuel savings will not pay for the depreciation in the first six months,” he said.

He said the energy consumed by the machines that are used to recycle cars is an added cost that many do not consider.

“Bottom line is that unless your car is getting gallons to the mile rather than miles to the gallon or is unviable in some other way, it is better to fix it and conserve,” Eberle said.

Double the cost

According to the Web site fueleconomy.gov, a 2009 Honda Accord costs the typical driver $1,464 a year, while a 1995 GMC Suburban costs $3,049 per year.

‘Cash for clunkers’

Q: What can I trade in?

A: Your trade-in vehicle must be made in the past 25 years, registered and in use for at least a year, and have a combined fuel economy rating of 18 miles per gallon or less.

Q: Where can I go to determine the fuel rating for my make and model of vehicle?

A: Fuel economy ratings are available at fueleconomy.gov.

Q: How do I find out when my vehicle was manufactured?

A: The month and year it was made appear on the safety standard certification label that is located on the frame or edge of the driver’s door in most vehicles.

Q: What can I get?

A: Your new vehicle must cost $45,000 or less. If it is a car, it must have at least a 22 mpg combined fuel economy rating. If it is at least four mpg better than your trade-in, you get $3,500. If it is at least 10 mpg better, you get $4,500.

Most new trucks, SUVs and vans must have a combined rating of at least 18 mpg. If it is at least two mpg better than your trade-in, you get $3,500. If it is at least five mpg better, you get $4,500.

Q: May I receive or use more than one credit under the CARS program?

A: No. The Consumer Assistance to Recycle and Save Act specifies that not more than one credit may be issued to a single person, that not more than one credit may be issued for joint-registered owners of a single eligible trade-in vehicle, and that only one credit under this program may be applied toward the purchase or lease of any single new vehicle.

Q: What rules apply to new work trucks?

A: A work truck, which is called a category 3 truck under the CARS Act, is subject to special rules. Work trucks are not rated for fuel economy by the Environmental Protection Agency. Thus, the eligibility of work trucks for the program does not depend on combined fuel economy. Instead, work trucks may be traded in under the program only if they were manufactured not later than model year 2001 and not earlier than 25 years before the date of the trade-in. In addition, work trucks may be traded in only for the purchase of a category 2 truck or another category 3 truck that is of similar size or smaller than the traded-in vehicle. The act provides for a $3,500 credit for trading in a work truck.

Q: What will I need to take to the dealer in order to participate in the program?

A: You should provide documentation establishing the identity of the person who owns the vehicle, preferably the title of the vehicle, and documentary proof that the vehicle “has been continuously insured consistent with the applicable state law and registered to the same owner for a period of not less than one year immediately prior to the trade-in.”

Source: www.cars.gov