'Cash for Clunkers' program off to fast start locally

Car dealers and marketing experts are saying the time to trade in your gas-guzzler is now, before government funding runs out and scams take over, and suburban consumers appear to be listening.

The nationwide Car Allowance Rebate System, known affectionately as CARS or Cash For Clunkers, launched on Friday and has roughly $250 million available. A consumer could receive up to $4,500 for a new qualifying vehicle purchased with your trade-in before Nov. 1.

But that federal funding could dry up much sooner, based on the response suburban dealerships are experiencing.

"We're really concerned that they will run out of funds before the program ends," said Colin Wickstrom, partner in Barrington-based Wickstrom Auto Group, which includes Ford, Lincoln, Mercury, Chrysler, Jeep and Dodge. "Customers are very motivated to take advantage of this and it's really helped our business. The reaction has been phenomenal."

The government launched its Web site www.cars.gov with guidelines for both consumers and dealerships on Friday as well. The program intends to replace older cars with new, more gas efficient models. The dealership is then required by law to destroy those trade-ins to keep them off the road.

The new vehicle must be less than $45,000 and passenger vehicles must have a combined fuel economy of at least 22 miles per gallon. The program provides a credit of $3,500 or $4,500, depending on the difference between the combined fuel economy of the trade-in and the new vehicle. Trade-ins must not be older than 25 years old and have a combined city/highway fuel economy of 18 miles per gallon or less at the time it was originally purchased. Visit www.fueleconomy.gov for details.

Oakbrook Terrace-based Chicago Automobile Trade Association said its dealer members expect to sell about 5,000 vehicles under the program.

"This will stimulate business for our new vehicle dealers at a time when there is such uncertainty in the market," said Jerry H. Cizek III, the association's president and general manager.

While consumers are expected to take advantage of the program, so are shammers. Already some state attorneys general and the Better Business Bureau of Chicago issues alerts on Friday.

All legitimate car dealerships are eligible for the program and consumers don't have to preregister. Any Web site that asks dealers or consumers to provide information without making that fact clear, or asks for other personal information, is misleading, the Better Business Bureau issued in an alert.

"Legitimate marketing for the Cash for Clunkers program will never require someone to provide a Social Security number or financial information," Steve J. Bernas, the bureau's president and CEO, said in a statement. "It would only be required at the dealership during the purchase or leasing of a new vehicle."

Before this program even launched, the state started seeing scams pop up online, said Illinois Attorney General Lisa Madigan.

"(They were) trying to falsely convince consumers that they must first pre-register and provide their Social Security numbers and other identifying information in order to participate," Madigan said through her spokeswoman. "That is absolutely not true. Consumers don't need to register or provide any personal information to an outside source before taking advantage of the trade-in credit with a qualified auto dealer."

Chrysler said it would match the government incentive to woo even more customers. And other dealerships have already seen a spike in sales. For example, area Hyundai dealerships started taking orders weeks ago for such vehicles to be delivered starting today, so consumers could take advantage of the program. Sales are already up 11 percent, said regional sales Manager Paul Lamb, based at Hyundai's central regional office in Aurora. The office oversees 172 dealerships in the Midwest.

"This is the biggest news we've had in our industry in the last couple of years," Lamb said.

<div class="infoBox"> <h1>More Coverage</h1> <div class="infoBoxContent"> <div class="infoArea"> <h2>Mayor-elect profiles</h2> <ul class="links"> <li><a href="/story/?id=309257">CARS: What you need to know<span class="date"> [7/24/09]</span></a></li> </ul> </div> </div> </div>