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Coming from the dealer end of things, dealers are still mostly clueless about how this works.
First off, dealers are not automatically enrolled in the program, they have to register with the government to be able to take advantage of this.
Second, what do you do with the cars? My suggestion at my dealership was to bid out the purchase price of each vehicle across the board and get a certain dollar amount for each car regardless of what it is, but we're not sure if we're allowed to make any money on the disposal of said units, or if any monies gleaned from the cars would end up reducing the amount of money coming from the government in voucher form.
Funny how the bill's been enacted, yet the very industry that it's designed to help is virtually in the dark as to how it operates. Salespeople at many dealerships have people lined up to call back once the plan was enacted, but as of Thursday I don't know that any cars had been sold because of it.
This plan was enacted to get those that save and are frugal to spend. To get a new car, your credit score better be in the mid 700's as a minimum.....in fact I know that banks are turning people down in the low 700s. That percentage of the population is decreasing daily with layoffs and foreclosures. Since it takes a similar credit score to buy used versus new, if the plan is successful, used car values will plummet like a rock, and most will end up buying $12,000 sausage cans.
It's going to be interesting to see how many people rush right out to showrooms to buy, and what they're actually buying with the (money).
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