My company has polled dealers over the past week regarding Cash for Clunkers sales. The number of qualified transactions is staggering considering that many dealers waited to start booking sales until Monday July 27th.  The dozens of dealers that PCG contacted had completed the paperwork on at least 15 Car Allowance Rebate System (CARS) transactions.

David Wilson, CEO of the Preston Automotive group in Maryland  told PCG that the Preston Autoplex outside of Baltimore had completed over  60 car and truck sales. Classic Chevrolet in the Dallas Fort Worth area has 30 deals done according to General Manager, Hagen Durant.  John Cleaves, GM at Midway Chevrolet in Phoenix said that his Chevy dealership  has been flooded with car buyers and that over 20 deals were completed.

Conservative reports say that 18,000 dealers will register for the NHTSA CARS program.  If 50% of the dealers were very cautious and waited to do CARS transaction until the official starting date of July 27th, that leaves 9,000 dealers that have been making deals for at least for one week.

To create our projections, we also had to figure in the Hyundai franchises that started selling CARS deals on July 1st.  When you consider these numbers you can see how the $1 billion in funding could be exhausted in the first 30 days of the official start.

Close to 250,000 cars could be processed under the Cash for Clunkers bill without additional funding.  If 9,000 car dealers have completed 15 deals by today (9,000 x 15 = 135,00 cars) the money for the Car Allowance Rebate System (CARS) will be gone in a few weeks. 

Our prediction earlier this month  that the CARS funding will run out by Labor Day weekend is looking very solid.  Dealers are writing into our Cash for Clunkers blog (www.cashforclunkersfacts.com)  with feedback that confirms this prediction.  Each registered dealership could easily have 10 sales in the wings.  If that is true, funding could run out by August 10th.

The NHTSA should pick up the phone and call President Obama as soon as the data from CARS sales can be analyzed; the NHTSA will be the first to know the true numbers.  Someone has ask Congress to start the process  of requesting additional funding.  If the program will only get the initial $1 billion allocated, then all the hard work the NHTSA did to get the program started will come to a quick stop.

The NHTSA has indicated that they will be posting the remaining funds for the program on the official website for the CARS program (www.cars.gov).  The countdown clock has yet to be posted but we predict that dealers will have to stop taking deals when the funds get near zero due to processing delays.

Congress will have to act quickly to allocate additional funding before the program comes to a screeching halt.  If that is the case, consumers hope that Congress will amend the language of the bill according to the Cash for Clunkers petition located at:  www.nocashforclunkers.com .  The petition has over 3,000 signatures and will be sent to sponsors of the original legislation next week.

American ingenuity.  Chrysler played their poker hand perfectly, waiting until the last minute to unveil their Cash for Clunkers sales strategy.  With their cards on the table, Chrysler announces that they will offer additional rebates and incentives for consumers using a Cash for Clunkers credit.    The additional rebates can be combined with government issued CARS credits, adding up to $9,000 in saving on new Chrysler cars.

Chrysler’s timing couldn’t be better.  The American auto maker is the first US manufacturer to rival Hyundai’s Royal Flush.  Early in July, Hyundai was the first to disclose their Cash for Clunkers sale strategy, announcing that they would accept qualifying clunker trade-ins and issue rebates for clunkers turned in as early as July 1^st. .

The ‘Chrysler Double Cash for Your Old Car’ will offer consumers additional incentives that can be combined with the Car Allowance Rebate System (CARS) credit.  For some consumers this can equal up to $9,000 off the MSRP for new cars that qualify for the NHTSA CARS program.  The program will start on July 23^rd. 

Consumers Who Were Locked Out Now Have Options

The program also gives hope to consumers who don’t qualify for the NHTSA CARS program.  With the Chrysler incentives, consumers can realize savings equivalent to consumers who can get government credits under the Car Allowance Rebate System (CARS).  In effect, Chrysler has created a universal Cash for Clunkers program for all Americans without all the paperwork.

Under the Double Your Cash program, Chrysler dealers will offer up to $4,500 Consumer Cash or 0% financing for 72 months through GMAC Financial Services on most 2009 model vehicles.  For example, qualifying consumers can get $9,250  in credits to purchase a 2008 PT Cruiser by combining a CARS credit of $3,500 and with Chrysler incentives.  If their clunker doesn’t qualify for CARS credit, they can still get $5,750 off the MSRP of a PT Cruiser.

Cash for Clunkers Website

 This information and more details about Chrysler, Jeep and Dodge specific incentives by model, you can view the summary incentives chart on:  http://www.cashforclunkersfacts.com/car-dealers/incentives/chrysler

Chrysler car shoppers who do not have a qualifying CARS clunker to trade in are still eligible for consumer cash and bonus cash.  Consumers can learn more about the Cash for Clunkers program and request a call from a participating local dealer by visiting http://www.cashforclunkersfacts.com/

On July 28th, I will be leading a webinar sponsored by Dealers Edge to discuss dealer marketing strategies for the Cash for Clunkers program.

The CARS program is a great opportunity for car dealers to deliver great customer service and great prices on new car sales.  By combining factory rebates with the government CARS credits, dealers can help consumers get into a new car at prices never thought possible.

The webinar is designed to help dealers communicate the program rules accurately to consumers.  The webinar is also design to help dealers focus their advertising dollars in the most effective places.  You can register for the webinar online by clicking here.

This is what Dealers Edge put together for the email blast to their members.

Cash for Clunkers Marketing Webinar

The gun will sound on July 24 and it will be off to the races.  “Cash for Clunkers” is promising to bring more excitement and customers into your showroom than you have seen for a long, long time.  Those that focus on just the “qualified” clunker owners are making a big mistake as many more customers, ready-to-buy, will be in search of a deal.  Many “not qualifed” shoppers will be primed to accept a good used car deal or may just be moved by existing factory incentives!

Handle the customers properly and you will build your brand integrity in your local community.

Dealers Edge has waited till just after the “Rules” are released to make sure you can take advantage of every opportunity while still complying with complicated government regs.  Brian Pasch (of the DealersEdge Digital Marketing Guide WebCast Series) has put together a comprehensive marketing plan using digital as well as traditional marketing techniques to help you get more customers into your showroom.

He will share that plan on July 28 in a Live WebCast at 1:00 PM EST.  Please join us and make sure that your current marketing plans are in compliance with NHTSA rules and standards.

Dealers are also reminded that if they plan to use the NHTSA green CARS logo in the marketing plans, they must get prior approval by the NHTSA.  By submitting your materials now, you can get them approved in time to be first to market with compliant messaging.

You will learn how to develop a digital market plan to capitalize on the Cash for Clunkers program and the consumer interest it will generate.  Specifically:

• How to make sure your website takes full advantage of organic search in your trading area with a full page of “Cash for Clunker” text including a clear call to contact your dealership.
• How to use this text-optimized landing page for Google Adwords- Pay-For-Click
• How to develop your online and offline marketing graphics and mailers for maximum impact that comply with the NHTSA
• How some are using a merge of dealership customer lists and external data sources to identify prospects or customers who might qualify for a CARS credit
• How to decide whether or not to employ outside data to identify “predicted” Cash for Clunkers candidates
• How to develop a digital organic marketing strategy, including blogs and press releases to drive more Cash for Clunker prospects to your website
• How to develop a cross selling strategy that emphasizes automaker rebates or sales of used vehicles to customers who do not qualify
• How to maximize the sales related to this program in your dealership – both to those who qualify and to those who do not qualify under Cash for Clunkers guidelines.

Join us on July 28th and you will walk away with a marketing template that is sure to bring more customers through your showroom than through your competitors.  This program has only a small window of opportunity – there is no time to sit back and see how things work out.  The winners over the next couple of months will be the dealers who were proactive in seeking out this business.

Members Only Registration Details:

This 90+ minute WebCast presentation will cost you only $198!  Non-Members Pay $298 and You Save $100 because you are a Network Member!

This session will be recorded and a download of the entire program made available to every attendee at no additional charge -So you can review the marketing suggestions and share it with fellow dealership managers and marketing planners.

You will receive immediate confirmation that your registration order has been received and then within 5 days of the WebCast, specific connection details.

To register right now, online, just click here or call 800-321-5312.  If you care calling from outside the U.S. and Canada, call 609-879-4456 and ask for Member Services.

The DealersEdge Satisfaction Guarantee

All DealersEdge Webinars come with a full money-back guarantee.  If you are dissatisfied for any reason, you only need to tell us and we will issue a prompt and full refund.  We realize that purchasing a program online and in advance carries some risk.  It might not be exactly what you thought it was or what you actually need.  Not to worry – just let us know and you get all your money back.  Your total satisfaction is our utmost concern.

But we are certain that you will be more than satisfied with this presentation.  Based on Brian’s performance on four previous WebCast this year and the many positive reviews, we just know you will be fully and happily satisfied.

The Cash for Clunkers bill goes into effect on Friday July 24th and the NHTSA launches their Car Allowance Rebate System (CARS).  The program will give consumers $3,500 or $4,500 toward the purchase of a new fuel efficient car or truck.  For program details visit http://wwwcashforclunkersfacts.com or the NHTSA website at http://www.cars.gov.

The government program is their own version of Cash for Cars but the key is to make sure your “clunker” qualifies.  If you qualify there is a small window of opportunity to buy a new car at significant savings.

Cash for Cars

For example, a 2009 Kia Spectra that has an starting MSRP of $13,550 can be reduce 59% if a consumer qualifies for the CARS $4,500 rebate since Kia is also also offering a $3,500 rebate. That’s a total of $8,000 bringing the car price down to $5,550. Every car that a Kia dealer sells at this price is a public relations bonanza.

Another example is a 2009 Hyundai Accent which has a started MSRP of $13,818.00. Consumer who purchase this car in July get a $1,500 factory rebate and if their clunker qualifies for a $4,500 credit that gives them a total of $6,000 toward a new Accent. This would reduce the cost of the MSRP by 43.4% which is like getting the car for half price.

On the domestic front, Ford car shoppers can get similar savings when they purchase a Ford Focus Coupe in July. With a $2,500 factory rebate and a $4,500 CARS credit consumers can deduct $7,000 off the price of a 2009 Ford Focus Coupe SE. This brings down the starting MSRP of $16,875 over 41% to $9,875. That’s a great story to tell and Ford dealers are ready to take advantage of this limited time program.

Without additional funding I predict the CARS program will run out of money by Labor Day weekend so consumers are encouraged to start shopping on Friday 24, 2009 and not delay their purchases until September or October.