Exotic Cars 101: How will 'Cash for Clunkers' affect or apply to ...

'Cash for Clunkers' is unlikely to have a profound effect on limited production collectible vintage cars or exotics

Curious or worried about how President Obama's new "Cash for Clunkers" will affect the vintage or exotic car market? Recently there has been a quiet flurry of inquiries from would-be auto collectors wanting to know what will happen to vintage autos or collectible exotic cars. Here's a video guide and simple explanation to help answer the question(s) about the used car for new car trade incentives designed to preserve, protect, and improve the quality of our global environment. 

 

 

CASH FOR CLUNKERS QUESTIONS RELATED TO VINTAGE, EXOTICS

Nearly half the questions seem to express concern for the destruction of what may be rare or otherwise irreplaceable cars for American domestic or international import inventory. The other half of the questions are centered on potential buyers who are under the impression that the Cash for Clunkers program will cause cash poor recession-busted owners to turn in older cars that are in poor to "restoration-potential" condition. If this scenario were to happen, existing inventory being maintained in collection by cash flush investors would actually be worth more money, as their cars would by default become more limited in number. [Such cars would likely be from car manufacturers like GM, Chrysler, and Ford rather than anything like Ferrari, Fiat, Alfa Romeo, or other European manufacturer.]

 

CASH FOR CLUNKERS EXPLAINED: SIMPLE VIDEO REVIEW OF DETAILS

The following video offers a clear and concise video explanation of the goals of the Cash for Clunkers program, including some initial praise and concern for how the program is affecting auto dealers while entering into its initial stages. Please take special care to note the use of terminology in the program, most notable that the terms "old cars" and "gas guzzlers" are used (rather than vintage, antique, racing, performance, luxury, limited edition, exotic, classic, collectible, or sports cars). 

 

 

THE SPECS AND ELIGIBILITY DETAILS OF CASH FOR CLUNKERS

The federal government’s Cash for Clunkers incentive program has been designed to get older cars off the road, not classic cars or cars that are of special interest to investors for historic preservation notes. The program is also designed to stimulate new cars sales; in theory, folks who have been hanging on to old cars such as domestic American vehicles that run but are not in the best of condition have the opportunity to trade them in on new vehicles and be guaranteed that the car traded in will guarantee them a substantial trade value the clunker vehicles would otherwise never have brought them.

Here’s how it works, according to NBC:

1. Your trade-in has to be no more than 25-years-old

2. The vehicle must get less than 18 miles per  gallon [<18 mpg] to qualify.

3. You’ll get a $3,500 dollar voucher if the new car you buy gets 4-to-9 miles per gallon more than what you trade in, $4,500 if the difference is 10 miles per gallon or better.

Chrysler Motors says it will match the government incentive, adding an additional $4,500 off most of its 2009 Chrysler, Dodge and Jeep models. As such, the company hopes each dealer that remained standing open after the company's mass closings will net at least 20 additional vehicle sales per month. For those working in the auto dealerships, that news sounds like a windfall, with the government incentive being paramount to an offering of manna from heaven in the current recession economy.


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