OLATHE, Kan. – A metro car dealer is offering customers $3,500 to $4,500 discounts. It’s part of a new federal rebate program but some call it risky business.
McCarthy Autogroup owns six dealerships. They say business is challenging. So, they want to be first to offer rebates through the Car Allowance Rebate System Act, more commonly known as "Cash for Clunkers". The act provides a monetary incentive for consumers to dump gas guzzlers for more fuel-efficient vehicles.
The rules require the trade-in vehicles to be driveable, be less than 25 years old on the trade-in date and get less than 18 miles per gallon. The vehicles must also be titled, registered and insured for the past year.
The program began Wednesday. However, the National Highway Traffic Safety Administration’s
informational website warns dealers and customers that they may want to wait because complete regulations for the program won't be in place until July 24th.
“Most dealers are not aggressively marketing it because we’re still unsure about some of the stipulations and guidelines that go into this program,” said Lauren McCarthy, spokesperson for the McCarthy Autogroup.
That said, McCarthy dealerships are advertising “Cash for Clunkers.”
“We jumped on this because we want to earn your business,” McCarthy said.
She admits business is challenging for her family’s six dealerships, especially for their Chevrolet brand, "But we’re still here and we’re still working harder than ever,” McCarthy said.
She said the program is generating dozens of phone calls and already helping sales representatives.
“It gives us more ammunition so we can get the best price for the customers,” said Homer Wallace, New Car Sales Manager for McCarthy Chevrolet.
However, until regulations for the program are finalized July 24, other dealers refuse to jump in. They say McCarthy is taking a big risk, possibly giving money to customers who may not qualify.
“We’re willing to take that risk because we want to be here to the end and we think in order to be here, you have to be strong,” McCarthy said. “You have to be aggressive. You have to be proactive.”
