Edmunds Answers

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  • avatar greenghost Jul 22, 2009 13:31

    The dealer keeps $50 for administrative costs. The rest of the scrap value goes to the salvager that will ultimately destroy the vehicle. The government will not be recoup any money from the scrap value. For more detailed info, please refer to this thread.

Answers

  • karjunkie 07/22/09 1:25 pm PST

    The dealer lied because under the CFC rules the dealer keeps the first $50 for administrative expenses but the remainder should go to you. We are hearing that many dealers simply refuse to do so and I'm not sure what recourse if any you have.

  • greenghost 07/22/09 1:31 pm PST

    The dealer keeps $50 for administrative costs. The rest of the scrap value goes to the salvager that will ultimately destroy the vehicle. The government will not be recoup any money from the scrap value. For more detailed info, please refer to this thread.

  • Stever@Edmunds 07/22/09 1:52 pm PST

    I was offered $100 in "scrap" value at a Hyundai dealer last week for my minivan. The salesperson said that they had a deal with the local auto salvage business and the salvage yard was paying dealers $100 for each clunker. This dealer has apparently chosen to pass that amount to buyers trading in clunkers, although they are informally calling it a "trade allowance" and not "scrappage."

  • greenghost 07/22/09 1:56 pm PST

    Steve- that sounds like a great cash bonus in the deal. This won't work in many areas of the country. Many dealers turn vehicles over to a wholesaler that will then move the cars to the wrecking yard, hence a middleman taking an extra piece of a small pie.

  • Stever@Edmunds 07/22/09 2:12 pm PST

    My wife keeps thinking she can get even more for scrappage. I was surprised to see the $100 on the initial quote. I was expecting zero. :-)

    I think the dealer would be better to call it scrappage instead of trade allowance too. The way I understand it you just get the voucher, not any "trade-in" value. It looks like the NHTSA has tweaked the language on home page recently or I just didn't notice it before:

    "The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate."

    That sounds like the dealer has to pay you something and the dealer will only get the $50 admin fee for the clunker and that $50 will come direct from the feds, not from any value the clunker may have as scrap.


    Aleigu7_6sh, I don't think your dealer has it quite right. We'll find out for sure by next Monday I suppose.

  • greenghost 07/22/09 2:37 pm PST

    *slaps forehead*

    Not sure what NHTSA is trying to do here! The actual legislation doesn't specify who gets the scrap value, beyond the first $50. This gray area will likely end up negotiable for savvy shoppers in some cases. Some dealerships will negotiate, some won't, it'll be interesting to see what happens. There are costs to get the clunker off the dealer lot, and to properly crush/shred/recycle/dispose of the old vehicle. Salvagers are allowed to part out most of the clunker, so a vehicle that has many valuable parts worth selling may be more negotiable on the 'scrap value' cash back.

  • Stever@Edmunds 07/22/09 3:17 pm PST

    I half-jokingly asked the salesperson the other day if they had a problem with me driving up in my trade without the airbags and catalytic converter (the feds may have a problem with me showing up without the cat). No comment. :-)

    I purchased a full sized spare on a universal rim for my van years ago so I'd probably keep that. And I could see removing my radio and then hooking it up to a solar panel and running it on staight DC. I could wire the steering wheel controls across the room. The roof rack has possibilites too.

    There's probably a job opportunity for out of work wrench turners - they could decontent your clunker before you trade it and split the proceeds with you.

  • nyuchuck 07/24/09 10:36 am PST

    I was just reading an article that states 'dealers will be required to provide the scrap value they get for the car, and will only be able to keep a maximum of $50 of that scrap value ----- giving the rest to the consumer alsong with the rebate amount.'

    I was wondering if this value will be deducted from the cost of the car?

  • dbeno 07/24/09 11:42 am PST

    The buyer gets the scrap value (-$50 admin fee to the dealer). I have a 10 year old Aurora that is in great shape, except fot that pesky Northstar engine. The tires are real new, the body parts are excellent as is the interior. I could part that thing out for at least $1000 and so can the scrap yard. Don't be screwed by your dealer. The $4500 is coming from the govt, not you or your car!

  • beernutz 07/28/09 6:46 pm PST

    greenghost it is disappointing to me that a representitive of Edmunds would answer the question regarding scrap value and what happens to it the way you did (see below) as what you wrote is far from a definitive answer and may be entirely wrong. There is ambiguity in the wording of the cars for clunkers legislation and even the support person I spoke to at the cars.gov nhtsa hotline was unable to clarify the issue for me. If what you wrote were true, this cars for clunkers should be renamed the Motor Vehicle Salvagers Bailout Program.

    "The dealer keeps $50 for administrative costs. The rest of the scrap value goes to the salvager that will ultimately destroy the vehicle. The government will not be recoup any money from the scrap value. For more detailed info, please refer to this thread.

  • ck161999 07/28/09 8:11 pm PST

    for all that are paying attention....if you go to the website cars.gov and pay attention.....you will see that it clearly states... and i will quote

    "The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate."

    that is straight from their own website. you will get the value in addition to the rebate. it doesn't mean that you will see the money, it doesn't mean that the dealer isn't getting part of it. plain and simple. What is easier still yet....that information is right there on the front page. just scroll down a little to find out.

    Source: www.cars.gov

  • beernutz 07/29/09 11:17 am PST

    For all those who claim that the dealer or the salvager is getting to keep the scrap value of the clunker, I just talked to the sales manager at the dealership I'm buying from and he was quoted a $250 scrap value for my vehicle. Minus the $50 administrative fee the dealer keeps, I am getting an additional $200 trade-in value above and beyond the $3500 clunker value.

    For those of you not exploring this with your dealers, I think you are leaving money on the table. My deal was already settled and I was happy with the price I was paying before this extra $200 was deducted, so the extra money is icing on the cake. The dealership I'm using is also building a LOT of goodwill with me too by going this extra mile for whatever that's worth.

  • mommy_of_3 07/30/09 4:52 am PST

    go to cars.gov YOU should get that scrap value in adition to the rebate from gov. I was looking for the same thing good luck..

  • rkaiii 07/31/09 1:26 am PST

    Would someone answer the original question?
    Where can I find an estimate of the scrap value for my vehicle regarding the CARS program?
    Thanks,
    Bob

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