"Cash for Clunkers"--What Is It and How Will It Work

Yesterday I was reading up on the Consumer Assistance to Recycle and Save Program (CARS), better known as 'Cash for Clunkers which President Obama had just signed, hoping to understand it and explain it here. So here is a summary of what this program is, why it was created, how it should work, and some mixed reviews from supporters, detractors, and skeptics.

What is CARS?
CARS is a government program intended to help individuals purchase new, more fuel efficient vehicles when they trade in less fuel efficient vehicles.

Why was CARS created?
The program is the result of a joint venture between the struggling auto industry and the emissions hawks to champion a potential victory for both the economy and the environment. The auto industry hoped to get Americans back into dealerships and shopping for cars while the 'green backers' hoped for fuel economy improvements and decrease pollution caused by cars.

How will CARS work?

1. Determine if your car qualifies

• Your vehicle must be less than 25 years old on the trade-in date, domestic and foreign vehicles apply.
• Trade in vehicles must get 18 or less MPG. To see if your vehicle qualifies you can visit: http://www.fueleconomy.gov/feg/sbs.htm
• Trade in must be registered and insured to the same owner continuously for the full year preceding the trade-in (proof will be required).
• Work trucks must be from model year 2001 or earlier and the year of manufactured be less than 25 years from the date you trade it in.
• Make sure your car is worth less than the maximum voucher of $4,500 otherwise you loose money on the deal. You will not get the full value of your trade-in vehicle in addition to the credit.

2. If your car qualifies, Shop for a Car

• Can only be applied to the purchase or lease of new vehicles. If you lease a vehicle, the lease must be for at least 5 years.
• The manufacturer's suggested retail price of the new vehicle cannot exceed $45,000
• If your new car beats the old one at least 10mpg, you get $4,500. If the difference is less than 10 but greater than 4 mpg, the credit is $3,500.

3. Bring title and proof of registration/insurance to dealer

• Papers must show continuous registration and insurance coverage for the past full year, under the same owner (whom must be the buyer).
• You do not need a voucher, the dealer will submit all required information to NHTSA
• If your purchase meets all the requirements, 10 days later NHTSA will issue a financial credit to the dealer which will be used towards your total.

4. Your old car will be destroyed

• The surrendered cars must be scrapped, but parts can be salvaged.
• The engine block must be destroyed.

Reviews of CARS:

• Most vehicles thristy enough to qualify for the program are SUVs or pickups. This means there is no reward for buyers who long ago opted out of the gas-guzzling market or who are willing to trade their small sedan car for a more fuel efficient car.
• It can only be used to buy new cars. In this economy many families that need this incenctive are those who cannot afford a new car, so they loose out of this opportunity.
• Supporters point out that a similar program in Germany sparked car sales and that voucher programs in Texas have proven to work (note: both of these programs are not exactly like the one being passed).

--Melissa (info@ivacars.com)

Automotive Humor

How To Change Your Oil

Women:

1. Pull up to Jiffy Lube when the mileage reaches 3000 since the last oil change.
2. Drink a cup of coffee.
3. 15 minutes later, write a check and leave with a properly maintained vehicle.

Men:

1. Go to O'Reilly auto parts and write a check for 50 dollars for oil, filter, oil lift (AKA kitty litter), hand cleaner and scented tree.
2. Discover that the used oil container is full. Instead of taking it back to O'Reilly to recycle, dump in hole in back yard.
3. Open a beer and drink it.
4. Jack car up. Spend 30 minutes looking for jack stands.
5. Find jack stands under kid's pedal car.
6. In frustration, open another beer and drink it.
7. Place drain pan under engine.
8. Look for 9/16 box end wrench.
9. Give up and use crescent wrench.
10. Unscrew drain plug.
11. Drop drain plug in pan of hot oil; get hot oil on you in process.
12. Clean up.
13. Have another beer while oil is draining.
14. Look for oil filter wrench.
15. Give up; poke oil filter with Phillips screwdriver and twist it off.
16. Beer.
17. Buddy shows up; finish case with him. Finish oil change tomorrow.
18. Next day, drag pan full of old oil out from underneath car.
19. Throw oil lift (AKA kitty litter) on oil spilled during step 18.
20. Beer. No, drank it all yesterday.
21. Walk to 7-11; buy beer.
22. Install new oil filter making sure to apply thin coat of clean oil to gasket first.
23. Dump first quart of fresh oil into engine.
24. Remember drain plug from step 11.
25. Hurry to find drain plug in drain pan.
26. Hurry to replace drain plug before the whole quart of fresh oil drains onto floor.
27. Slip with wrench and bang knuckles on frame.
28. Bang head on floor board in reaction.
29. Begin cussing fit.
30. Throw wrench.
31. Cuss for additional 10 minutes because wrench hit Miss December(1992) in the left boob.
32. Clean up; apply Band-Aid to knuckle.
33. Beer.
34. Beer.
35. Dump in additional 4 quarts of oil.
36. Beer.
37. Lower car from jack stands.
38. Accidentally crush one of the jack stands.
39. Move car back to apply more oil lift (AKA kitty litter) to fresh oil spilled during step 23.
40. Drive car.

Fight Against "Car Cloning"

On March 24, the FBI issued arrest warrants for 17 people in Tampa, Miami, Chicago, Mexico, and Canada against individuals accused of 'car cloning'--stealing the identity of legitimately owned vehicles and tranferring it to stolen cars to make them look legal. The FBI stated that the ring had been operating in the U.S. for over 20 years; had cloned over 1000s of vehicles which were moved and sold in 20 states and several countries; and had caused more than $25 million in losses to consumers and banks. Unfourtunately this ring is just one of many that law enforcement officials across the nation are trying to break, and until then if you are car shopping you should beware.

Following is a list of things that are being done by officials and car auctions/sellers to help protect vehicle consumers, and a list of things you could do if looking to buy a car:

• NMVTIS--an electronic system, established by federal law in 1992, that enables users to access automobile titling information, including brand(title) history and certain historical theft data. A "brand" is a descriptive label assigned to a vehicle by a state that identifies the vehicle's current or prior condition, such as "junk," "salvage," or "flood." By capturing into one system specific pieces of information from state motor vehicle titling agencies, automobile recyclers, junk and salvage yards, and insurance carriers, NMVTIS protects states and consumers from title fraud, keeps stolen vehicles from being retitled, and makes it more difficult for criminals to conceal stolen vehicles for criminal purposes. Currently 27 states participate in it, with 10 more working towards participation. To see a complete list of participating states go here: http://www.nmvtis.gov/NMVTIS_Map.pdf
• Many Online Car Auctions now decode their vehicles VIN when listing their vehicles and will only let registered appraisers into their storage facilities. The appraisers must sign in and out when they go to the facilities. Once vehicles are sold, the customers or transporters pick up the vehicle outside of the facilities.
• In addition, the Better Business Bureau and F.B. I. offer the following advice to car-buying consumers to avoid getting snared into buying a cloned vehicle, and determine if a vehicle is cloned:

1. Get a copy of the car’s vehicle history report.
2. Always check under the hood to ensure V.I.N. numbers match, and check for signs of tampering such as scratches.
3. If you are car shopping, beware of a car being sold for substantially less than comparable makes and models.
4. Look for incorrect spellings on paperwork, like vehicle titles.
5. If you think your car was cloned (for instance, you receive notice of unpaid parking tickets that aren't yours), contact your local police.
6. Trust your intuition—if it sounds too good to be true, it probably is!

--Melissa

The Difference between Clear Title and Clean Title

Frequently, when searching for information on salvage titled cars, you encounter the following questions (or a modified version of the questions):

1. Can I clear the title of my salvage car?
2. How can I get a Clean Title if my car was salvaged?

And I am sure that as often as you encounter these questions you notice that there seems to be an incongruency on the answers: some people answer yes and some people answer no to both of these questions, so what is the real answer? Why do the answers often disagree?

I believe that the problem is due to the misconception that clearing a title is the same as converting a title into a clean title. Following is an explanation of both terms:

***CLEAR TITLE: a clear title is issued once a salvage vehicle has been repaired and has passed the state's inspection. A clear title is the same color as a clean title from that state and gives driveability clearance to the owner of a previously salvaged car; in other words the owner is able to operate such vehicle in US streets once a salvage title is cleared. In addition, the clear title usually has a note stating that the vehicle has been rebuilt or reconstructed.
***CLEAN TITLE: a clean title is issued to a vehicle that has never been in a reported accident, or if in an accident has not been deemed a total loss by the insurance company involved in the claim. Notice that a clean title does not guarantee that the car has never been involved in an accident or if it has that the damages are not extensive.

So now as to answer the questions often asked:
1. Yes, a salvage title can be cleared in all states, in fact you must first clear the salvage title before you can operate a vehicle in any state of the U.S.
2. No, you can not obtain a clean title from a salvage title in any state of the U.S.. Once a car is deemed as salvage, it shall never be able to appear as a clean title again in any state. The few exceptions would be when the state personnel processing the title makes a mistake, but even then the history of the vehicle will always show that it was salvaged before.

--
Melissa

Why Do Insurances Auction Autos?

Apart from insuring autos, all insurance companies buy and sell cars. When a vehicle is declared a total loss, the insurance company pays the insured owners for their loss and in turn becomes the owner of a wrecked, weather damaged, stolen, or burned vehicle. The insurance company then turns around and attempts to recover some of its money by selling these cars.

Storing and auctioning damaged autos could cost insurance companies more than the revenue of their sales, therefore they use other companies to auction and negotiate the sale of their automobiles. Some of the auctions deal with used car dealers and vehicle dismantlers only, whicle others like Insurance Vehicle Access, IVACars.com, also deal with the public.

If you are an individual, or would like to start a small car sales business, salvage insurance auctions online is a good place to start if you have patience and take the time to learn how they work. You may start by making sure you read the auction's rules and obtain as much information as possible about the bidding and purchasing proceedures. Following is an example of things you should know about the auction you are considering to deal with:

1. Are all highest bids final or do you still have to wait for approval
2. How much information about the vehicle is actually available to you
3. Can you personally inspect the car? If no can you send a professional to inspect the car? (Note: some companies do not allow the public in to see the cars but they do allow professionals--also known as Appraisals, to inspect the autos for a customer.)
4. Are there any additional costs if your offer is accepted? Are the additional costs subject to change? What are their forms of payment?
5. How long does it take for you to receive the title and complete purchase paperwork after your sale?

We invite you to send us your comments, experiences, and/or knowledge about salvage vehicles, car auctions, shipping/transporting cars, buying car parts, etc....

Melissa