Cash for Clunkers scrap value of my trade in was negative?

I made my deal and put a deposit down early last week. Before I went in to close the deal I called up the dealership and asked them how they were calculating the scrap value and what could I expect as I knew it was to be in addition to the rebate.

What I was told was that they have to pay the salvage yard to take the vehicles away, and then after they went to auction, they might, and he stressed might see some money back. He then went on to say that they didn't expect to net any money at all from the scrap value of the cars. I told him I was very skeptical of that, and if that was the case, they should be working with other scrap yards. I had read this posting here, which made a lot of sense to me. Earl Stewart On Cars: Your Clunker’s Salvage Value Should Reduce the New Car Price The salesman offered me $100 for the scrap value, and I accepted that. I probably should have done some more research and haggled over this, but I decided I wasn't gong to kill the deal over it.

When I went in and signed the paperwork, the line on the CARS form that says "Dealer's best estimate of Trade-in Vehicle Scrappage Value" said -$100. Yes, negative $100. They also had forgotten to include the $100 that I had negotiated with the salesman for the scrap value, but after I brought it up they had no problems whatsoever taking it off. So in the end, I got $100 for the scrap value, but on the form to the government they claimed that the value is actually -$100.

I was just curious to know what everyone got for the scrap value of their clunker?

One of their shady BS again

They are allowed to keep $50 of the scrap value for administrative fees, that's it. They can't charge you for use of hte the CARS program. I received 4 cents per pound for my car, $160, less the $50, leaving me a net gain of $110.

I'll call them on their BS.

The scrap yard cannot sell the car as a car. The dealer is required to disable the engine so that it cannot be done - the whole point is to get that junker off the road! They can only sell it as scrap metal, and scrap painted steel does not have a very high value. In addition you have to carefully strip down other components first.

Steel scrap is currently running at about 9 cents per pound. A 3,000lb car is worth about $270. I'm sure that's less than the cost of removing non-steel components and the cost for storage. Plastics are going for about 40 cents per pound, but they're obviously a lot lighter than steel.

Yes, that certainly sounds like BS to me too. As stated previously, the dealer is allowed to keep $50 of the scap value for their hassle. My dealer put a $1 scap value on the sales contract, but acknowleged that it was just a placeholder until they get the actual scrap value when the salvager picks up the vehivcles. Apparently they are waiting until they have a bunch of cars to turn over to the salvager so I don't know the actual scrap value they are giving me for my 1998 Ford Econoline van yet. Will report back when I do.

My 97 Ford Explorer got a scrap value of $150 with no negotiating on my part. That appeared on top of the $4500 credit.

Sorry to hijack the thread, but has any of you reported transfer of title to the DMV yet? Under "sale value" what do you put?

Essentially they gave me $150 scrap value for mine since I got $100 back, but on the form they show negative $100. It still baffles me, and has to be some sort of ploy on their part to rake in some extra dough. I'm sure if I had not brought it up I would not have received the $100.

Bambam, that's interesting that you didn't get the amount right away, but they will write you a check once your van is actually processed by the scrap yard?

The dealer got the title to my clunker.

I'm amazed that you guys are getting a $4500 welfare check from the government and you're complaining that dealerships are cheating you out of another $100. The BS is with the government, not the dealerships.

I mentioned it to the sales person who told his manager and they said they werent giving anything for scrap value. I told the finance person and they said the same. Customer service called the next day after purchase and I mentoned it. Then the finance person called the next day and they said the dealership was getting 50.00 but the salvage yard was keeping the rest. I was the first one through the dealership for CFC and I only brought it up to make sure everybody was on the same page because they were worry about all the procedures. I got a good deal and was happy but they should follow the guide lines.

It's called playing by the rules. If the rules state that the consumer is supposed to get fair scrap value then that is what the consumer should receive. Do you think it's okay if the dealerships lie and cheat the consumer? That is what I am trying to ascertain here, what others are being told about the scrap value of their trade in vehicles, not discuss the merits of the program.

If you want a political discussion of the CARS program go to FHOP.

$4500 welfare check? This is no different than going sending a kid to a public school, or attending a state-system college.

My Prius dealer never mentioned "scrap value" when inquiring about trading 96 Jeep for 09 Tacoma; Prius purchased prior to start of clunkers program. The dealer from whom I just purchased the Tacoma 'shoved' the scrap value at me w/o hesitation. Scrap value: $250!

We are showing $50 scrap value for cars.
It's a horrendous expense to get rid of these cars - they have to be hauled away. And, I gotta add, we have a pretty damn big back lot. I have more clunkers than I have new cars for sale... I should post pics here. My boss says we've already disabled / had 40 of them hauled away, and I STILL have nearly 80 left.

GUys, you have to HIRE people to pull these documents together, double check the cars site, and do the incredible scanning and electronically sending of the docs to the gov't... we're probably actually in the hole a bunch on the admin end. if you balance out the car's plan that allows is an admin fee of $50 a car. In the long run, with the car sales being up, we're obviously better off but... you don't start throwing out more to anyone till you have a clear look at how it impacts you wholly. My back lot's being wrecked with leaky oil drops, sagging iron and nowhere to park trade ins that ARE good!

I actually received $200 for mine, minus the $50 for admin fees.

If we are entitled to Scrap value minus $50 for the dealer than we should get it. My dealer alreader tacked on $398 in dealers fees to the MSRP AND tried to "slip in" $169 for glass etching (telling me it was required). I am not feeling sorry for the dealer here. Just want what is rightfully mine. I would like to know how I can find out Scrap value as I doubt the dealer will be honest about it. He is giving us $100.

I don't think there is any easy way to find out unless you call scrapyards yourself and ask them how much they would pay you for your vehicle, but make sure you tell them the engine will not be able to be reused as it's possible they might include the value of a working engine in their quote to you.

I got $125 for scrap here in SoCal. They put it on the trade-in line.

4500 is 4500 call it what you will. Spending 33k + on a car I'll take all the "welfare" I can get. What happened did your dealer not offer it? if so where did you get it? (so others can avoid the same problem.)

I got 150 scrap value for mine. It goes by the GVW mine was 6500lbs. I should have gotten 250 for it but I know the dealers gotta get rid of it and make some too so I didn't complain much. lol