William Grammatica tried to replace his gas-guzzling 1997 Ford Explorer for two years with no luck. But all that changed Sunday with help from the federal government's new "cash for clunkers" program.
The Placentia accountant, 38, walked into Miller Toyota of Anaheim with his family and found a red Toyota Highlander marked at $28,000. But he got it for $23,500, thanks to the clunkers program, which was in full swing last weekend at auto dealerships across Southern California.
For The Record
Los Angeles Times Wednesday, July 29, 2009 Home Edition Main News Part A Page 4 National Desk 1 inches; 52 words Type of Material: Correction
'Cash for clunkers': A photo caption accompanying an article in Business on Tuesday about federal incentives to encourage motorists to trade in gas-guzzling cars for new, more fuel-efficient vehicles said William Grammatica and his wife traded in their 1992 Ford Explorer. As the article indicated, the couple traded in a 1997 Explorer.
"It was a good opportunity to upgrade for better gas mileage while also being better for the environment," he said. "The timing was right."
Nearly 16,000 dealers nationwide have signed up to participate in the trade-in program, Transportation Secretary Ray LaHood said Monday after his department issued regulations for the program last week.
By the weekend, deals of all kinds were being made. Chrysler dealers were offering as much as $4,500 for gas guzzlers -- and another $4,500 off as well. Hyundai reported that the program has been responsible for about 14% of July sales so far.
Under the $1-billion Car Allowance Rebate System, or CARS, the federal government will shell out from $3,500 to $4,500 depending on how much gas buyers save with the new car or truck.
By trading in his Explorer, which averaged 15 miles per gallon, for the more fuel-efficient 20-mpg Highlander, Grammatica was eligible for the $4,500 cut.
In a tough economy for automobile sales, dealers are hoping that the program helps them clear their lots. And based on the rush they saw this weekend, things are looking promising.
The program will end either Nov. 1 or when the $1 billion of federal money runs out. Customers hoping to cash in had better hurry, said Terry Miller, general sales manager of Galpin Ford in North Hills.
"The money will run out sooner than people think, so it's definitely a concern," he said. "We'll have to check regularly where the government is at with the money."
He believes the voucher fund will be dry by next month.
More than 800 calls about the program have poured into Galpin Ford since the dealership started offering the discount in early July, with nearly 25 customers just this weekend, Miller said.
The dealership said it has made more than 70 trades and expects dozens more, with the hybrid Fusion and Escape doing especially well.
