Hyundai is First Automaker to Honor Cash For Clunkers

By Ross Edwards
Sunday, Jul 05 2009 15:08

Cash For Clunkers, or CARS, has been signed by President Obama, but will not go into effect until July 24, when the government is finished ironing out the details of the program. Hyundai isn’t content to wait until then. According to Bloomberg, Hyundai is already advancing money to dealers so that customers can take advantage of the Cash For Clunkers rebate.

Through the CARS program, consumers who trade in a vehicle that gets bad gas mileage for one with a better MPG rating will receive up to $4,500 from the government toward that new car. Hyundai is advancing money to its dealers so that they can start taking in Cash For Clunkers trades before the program officially launches.

The sporty new Hyundai Genesis Coupe is one of the company’s many cars and trucks that will likely qualify for the CARS rebate.

Hyundai’s strategy means that buyers anxious to use the Cash For Clunkers program will be able to before the official launch on July 24. Since only $1 billion has been allocated to the CARS program, many consumers are worried that they won’t be able to take advantage of it before funding runs out. For those worried about not being able to take advantage of the rebate, Hyundai’s status as the first to honor it could be a big draw.

Since the Cash For Clunkers details have yet to be decided on, Hyundai runs the risk of giving out rebates for trade-ins that don’t qualify for the program. If that happens though, the consumer will not be responsible for repaying the rebate. Hyundai will just have to take the loss.

Confused or unsure about some of the car loan terms used in the article? Click here for our Auto Loan Glossary.