Valley dealerships deal with 'Clunkers'

Written by The Fresno Bee
08/24/09 09:30:04

Worried they won't get their money from the federal government, several Valley car dealerships called an early end to the Cash for Clunkers vehicle trade-in program this weekend -- well ahead of today's 5 p.m. sales deadline.

At least one dealership -- Future Ford Kia in Clovis -- said it would keep selling cars as long as qualified customers showed up.

Despite paperwork headaches and worries that the program will run short of funds, Valley car dealers said the federal incentive program has been a boon to sales at a time when cars were languishing on their lots.

The $3 billion federal program gives customers up to a $4,500 credit for trading in a used car for a new, more fuel-efficient vehicle. Rebates for more than 500,000 cars already have been claimed for a total of more than $2 billion.

"The program has been wonderful, everyone is selling a lot of cars," said Linda Gist, general manager at Bingham Toyota in Clovis. Valley dealerships deal with 'Clunkers'

However, she said, the problematic program has turned many dealers off. Bingham stopped the clunker deals Sunday afternoon. Gist said her staff needs time to submit to the federal government the 100 applications it already has accepted. "Only one has been paid and six are approved," she said.

At Hedrick's Chevrolet in Clovis, 15 Cash for Clunker customers were accepted Friday, but 35 were turned away because the staff didn't have time to process their applications. Eight were accepted Saturday before the dealership put the brakes on the program Sunday.

Brian Loyd, Hedrick's sales manager, said the dealership is backlogged with paperwork for the 50 customers it has put into new cars. And he said Hedrick's is worried it may not be reimbursed for all the clunkers it took in.

"We've only gotten reimbursed on one of them," he said.

Loyd said dealers feel pressured to let qualified customers drive off with new cars. However, he said, if the customer's application is later denied, "we can't ... get the car back."

At Future Ford Kia, sales manager Jose Sanchez said he was low on fuel-efficient cars, but would keep selling on Sunday.

Sanchez said the dealership -- part of a California network of dealers -- has been reimbursed on nearly all of its clunkers.

Behind the dealership, he showed off a "graveyard" of 90 clunkers. It includes gas-guzzling SUVs and a car the staff has nicknamed "the beast" -- a 1988 Lincoln Town Car with ripped seats and an odometer that has rolled over four times. The dealership estimates the Town Car has logged about 455,000 miles.

In the front lot, where new cars used to sit, the dealership had vacant rows.

"We knew it was gonna be big, we just didn't know it was going to be this big," Sanchez said. The reporter can be reached at tcorrea@fresnobee.com or (559) 441-6378.