Local car dealers say the federal cash for clunkers rebate program is doing what the government hoped: getting shoppers into dealerships and some into more fuel efficient cars.
"Be careful. I might take off," said new car owner Barbara Webb-Atkins.
She loves the new car she just bought, after qualifying for the government rebate program Cash for Clunkers.
It's an effort to get clunkers off the streets, and stimulate the automobile economy that took such a dive this past year.
"XM radio, air conditioning, nice Scotchguard seats," Webb-Atkins said, "This new car smell is going to stay with me for about a year, because my new car smell don't go away."
She brought in her Isuzu hoping it would qualify as a gas guzzler.
"It's not really a hoopty, but it's nine years old. And I saw in the paper the $4,500. And I don't think I'd get that if I was to trade it in," Webb-Atkins said.
If your car qualifies as a clunker in order to take advantage of this program, you'd have to buy a brand new car that gets better gas mileage.
"So if you improve the mileage by four miles on the vehicle you're trading in, you qualify for the $3,500 rebate. if you improve by ten miles per gallon you qualify for the $4,500 rebate," said Rick Flick with the Louisiana Auto Dealer Association.
"It has to get less than 18 miles per gallon. It has to be drivable, the owner has to own it for one year, and has to have maintain insurance on it for one year, in order for this vehicle to qualify for this program," said Wayne Maiorana, the General Manager of Veterans Ford.
Your clunker also has to be a 2001 model or older, up to 25 years. Dealers participating in the car allowance rebate system, or CARS can check the recently established fuel economy requirements to see if customers' clunkers qualify. This rebate may not be for everyone.
"You're going to have to determine what your needs are, what you're budget is. Some people may be reluctant to go out and buy a new vehicle right now, just because there is a deal on the table, doesn't mean it's right for you," said Don Redmond of AAA.
"Read everything before you sign it and you should be okay," suggests Cynthia Albert of the Better Business Bureau.
Whether customers qualify or not, some local car dealers say the program has helped sparked business, and cars are starting to sell again, after this year's slump.
"They are actually coming and asking about products and the amount of traffic coming in has increased tremendously over the past couple of days," said Marshall Soullier, General Manager of Banner Chevrolet in New Orleans.
As for Webb-Atkins, she suggests people take a chance; they might leave their jalopy behind and get behind a new set of wheels.
The clunkers are not trade-ins. They will be scrapped.
The government has set aside $1-billion for the rebate.
