Cash for Clunkers Bill Needs Provision For New Car Loans

PR Log (Press Release) – Jun 14, 2009 – The $4,500 voucher credit offered by the Cash for Clunkers program may fall short of assisting many consumes that are driving an old clunker.  From the hundreds of email submitted to the Cash for Clunkers Facts website, many Americans will still be challenged to afford a new car.
 
Banks and new car dealers have raised the minimum credit score for new car loans that have left many buyers out in the cold. The fall in housing values, rising unemployment and the shrinking value of family savings have impacted consumer credit scores.  In many cases, the minimum score to qualify for a car loan has jumped 50-75 points.

The Cash for Clunkers website ( http://www.cashforclunkersfacts.com ) has been flooded with questions asking if the $4,500 could be applied to a 2007, 2008 or 2009 used car that exceeds the 22 mpg requirement.  For now, the current language of the bill only allows the voucher to be applied to new car purchases.

A Car Buyers Market

One ray of light is that consumers are in a position of strength right now since the overall auto industry is very depressed. Car dealers are looking for qualified used car buyers and are motivated to deal because of the drop in new car sales.

Consumers looking for reliable transportation have also been choosing alternative lending solutions like "buy here pay her" car dealers.   ABC Motor Credit (http://www.abcmotorcredit.com) in Ohio has seen a 25% increase in used car inquiries as compared to next year.  "Consumer who have been impacted from falling credit scores can be accommodated at our dealership.  We understand that bad things can happen to good people so we work out a payment that they can afford" says Sam Snellenberger, General Manager of an Ohio used car dealership.

Used Car Dealers

If you are looking to purchase a used car, the Internet provides a great opportunity to shop for the exact car that you want regardless of where it is located. Shipping cars across the country is safe and affordable if you are not in an immediate rush.

The Cash for Clunkers websites has compiled a list of used car dealers that have contacted them and requested to be on the site to help consumers find an affordable used car.  These companies have committed to work with car buyers who need a great deal during these tough times.