Cashing in on clunkers Dealership boasts big month Joshua Wolpe, DDN Staff Writer Wednesday, July 29, 2009
Volkswagen Product Specialist Tony Prevo shows off the 2009 Volkswagen Eos Convertible at the Larry H. Miller Volkswagen KIA dealership at 8303 W. Colfax Ave. in Lakewood. Denver Daily News photo by Donna Martinez.

Justin Lombardi has been the general manager of the Larry H. Miller Volkswagen KIA dealership in Lakewood for exactly 30 days now. 

He just finished making his seventh Cash-for-Clunkers deal yesterday — not a bad batting average after about a month on the job.

Cash-for-Clunkers, officially named the Car Allowance Rebate System, is a federally funded program that began July 1 which gives consumers a credit of up to $4,500 towards a new, more fuel-efficient car when they trade in their old gas-guzzlers.

“We are currently having our best month of the past three years,” said Lombardi. “I expect the uptick in business to continue based on the money coming into the industry from the federal government.”

Program requirements

The Cash-for-Clunkers program, which runs through Nov. 1, has a few requirements that must be met to receive the $3,500 or $4,500 credit. 

Your vehicle must be less than 25 years old on the trade-in date, and most of the vehicles must get 18 miles per gallon or less (some large pick-up trucks and cargo vans have different requirements). Trade-in vehicles must also be registered and insured continuously for the full year preceding the trade-in. 

In addition to federal incentives aimed at encouraging people to retire their gas-guzzlers, there are hybrid tax incentives currently available that vary depending on the car’s make and model. 

The point is clear — the government wants to reduce vehicle emissions and carmakers are responding. Volkswagen currently has a line of “clean diesel” vehicles, and plans on releasing its Touareg SUV featuring a hybrid drive next year. Lombardi said that KIA is also on the verge of releasing a hybrid in the near future.

Adding salespeople

While much of the auto industry has been associated with bailouts and low sales numbers recently, the government’s incentives seem to be enticing buyers back with deals too hard to pass up.

“We are adding four more salespeople next month — two for the Volkswagen side and two for the KIA side,” said Lombardi. “In addition to new car sales, I attribute a lot of our success to used cars as well — there is definitely still a used car buyer out there and we’re aiming to be one of the largest used car businesses in the state.”

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