In Cadiz, the only car dealership to participate in Cash for Clunkers was Wildcat Chevrolet. Jerry James, general manager of Wildcat Chevrolet, said his business has seen a few more sales than they would have without the Cash for Clunkers program, and added that they sold more cars than trucks.
James said the program was able to get a large number of vehicles with low gas mileage, commonly dubbed “gas guzzlers,” off of the road, although he believes most of the gas guzzlers he traded in were not used very much by the owners and weren’t of much value
“I think most were just extra vehicles with little value and the people who owned them took advantage of the government incentive money while it was there,” James said.
James also said it was “a bit frustrating” his business hasn’t received the money from the government yet, and although he didn’t want to sound ungrateful for the extra business, the turnaround on the payments should have been shorter than it has been.
“I think the government could have done a much better job of preparing the administrative side of the program and should have been able from the start to get the dealers’ money back to them in a timely manner,” James said.
According to a press release from Kentucky Automobile Dealers Association President Ron Jackson, Kentucky taxpayers can now receive trade-in credit for vehicles offered in trade when purchasing new motor vehicles.
During the special legislative session in June, House leaders added the tax break to spur new car sales.
Car buyers have had to pay a 6 percent usage tax on the purchase of new cars. Starting in September, car buyers trading in a vehicle will pay tax on the difference between the new and used car value. The tax credit will only be available for one year or until the $25 million allotted for the credit runs out.
“Allowing trade-in credit not only helps the economic conditions in Kentucky but also helps keep vehicles registered in Kentucky and Kentucky tax dollars at home,” Jackson said in the release. “Kentucky has had a problem for years with vehicles being registered out of state that should be registered in Kentucky. Not allowing trade-in credit in Kentucky is a primary reason why Kentucky residents improperly register vehicles out of state. Allowing trade-in credit will keep Kentucky road fund dollars in Kentucky and Kentucky property tax dollars in every local community across the state.”