A federal government program aimed at helping citizens purchase more fuel-efficient vehicles is driving a business surge at auto dealerships across the Golden Triangle.
The national Car Allowance Rebate System, also known as the cash for clunkers program, during the past few days has been drawing a “tremendous amount” of customer traffic to the region”s car lots, several auto dealers agreed Monday afternoon.
“It”s just unreal the amount of people who have been interested in buying a new car since this program began,” said Larry Williams, general manager of Carl Hogan Automotive”s General Motors division on Highway 45 North in Columbus.
“We have had at least nine trade-ins in the past two days alone, and we”ve had a lot of people calling us about it,” Williams added. “It”s great, because we really needed the extra business.”
Through the CARS program, dealers are offering a $3,500 or $4,500 rebate to customers who trade in older vehicles for newer, more fuel-efficient models.
After the trade, the federal government will subsidize the dealership for the rebate amount given to the customer. Though there are a few exceptions, cars traded in for the program must be less than 25 years old, get no more than 18 miles per gallon and must be traded in for a new vehicle with greater fuel efficiency.
Though the program “officially” went into effect Monday, some local dealerships began offering the rebates after the CARS guidelines were finalized. The program is scheduled to last either until Nov. 1 or until federal funds allocated to the program are exhausted.
“It has definitely had an impact on our business since it began,” said Leon Williams, general manager of Columbus Hyundai off Highway 12 East in Columbus. “I think I”ve done eight deals through the program since Friday.
“Most of the trade-ins have been SUVs, older Jeep Wranglers and stuff like that,” Williams added. “It is really helping us out.”
In the Golden Triangle”s northern point, employees at Mitchell Automotive said they have been seeing a “considerable amount of interest” in the program.
“I really do think this will be a great program for everyone,” Mitchell Automotive Operations Manager Ben Thomas said of his West Point dealership, which began offering the program Monday. “I think people should take advantage of it while they can.
“Where else could you get rid of a $500 car and get $4,500 for it?” Thomas laughed. “We are very excited about it, and our customers have been too.”
Farther west, Starkville Ford General Manager Chris Vickery said customers have seemed “very excited” about the program.
“Our customers definitely seem very excited about it, and interest has been very high,” Vickery said. “I think there will be a business boom as a result of the program.
“If the U.S. government wants to get into the automotive business, that”s fine with me,” Vickery added. “We are optimistic about the future of the car business.”
Several auto companies also are offering rebates on top of the government-funded program, explained Columbus Nissan General Manager Russell Street.
“Manufacturers usually run incentives. And, by law, the customers get whatever rebates the manufacturer is offering on top of the cash for clunkers rebates,” Street explained, noting his dealership on Highway 50 in Columbus has seen nearly 10 trade-ins since Friday.
“My entire back line is full of clunkers that were traded in for this program,” Street laughed. “There is a lot of interest, for sure.”
Even if customers do not participate in CARS, a “big increase” in dealership traffic generated by the program is aiding area car lot owners dealing with one of the worst economic recessions in decades, said Stan Gunnels, sales manager at Premier Ford on Highway 45 North in Columbus.
“It”s drawing a lot more traffic to our showroom,” Gunnels said, noting his dealership has received about seven trade-ins through the program. “And any time that happens, it”s definitely a good thing for any dealership.”
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Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 30 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
