Paul Spinetti said he drove his grandfather's old Cadillac from Pacifica to Vallejo's Team Superstores on Thursday to trade it in on a new Chevy as part of the Cash for Clunkers program.

"There's some sentimental value" to the 1985 Fleetwood, Spinetti said, but he wants better gas mileage. Plus, "I probably could have gotten $1,500 for it" as a trade-in otherwise, he said.

He'll get between $3,500 and $4,500 now.

With a $2 billion infusion extending its life, the Car Allowance Rebate System (CARS) -- better known as the "Cash for Clunkers" program -- seems to be a boon to consumers while leaving local dealers cautiously optimistic about the future.

But even if it defibrillates the economy, the program may mean death to charities relying on vehicle donations.

Donations of used cars are down, which will impact nonprofits like Fairfield's Mission Solano, which rely heavily on such contributions.

Local car dealers say they're running out of inventory and buyers are unloading gobs of gas guzzlers in favor of new, fuel efficient models. But dealers say they're fronting the money and the paperwork is massive.

"It's an administrative nightmare but we're running out of cars to sell, so I guess it's worth it," Team Superstores owner Ken Ross said. "It's certainly gotten people out of the house to buy cars and it's pumped up the troops. But the submission process to the government is the biggest nightmare you'll see."

Dave Johnston of Toyota Vallejo

agreed on both counts.

"The program is driving traffic to the showroom. We're selling lots of cars. But the process to collect the money from the government is time consuming and we've yet to see a dime from the government, and I don't know a dealer who has."

But showrooms are busier than they've ever been, he said.

"I've never see it this busy consistently for two weeks. I've seen busy weekends, but nothing like this," Johnston said.

On the other hand, dealers are all awaiting reimbursement by the federal government for the fronted funds, Johnston said. Vallejo Toyota has done some 80 Cash for Clunkers deals since the program began last month, most of them for $4,500 rebates, he said. So the government owes the dealership quite a chunk of change.

Plus, since practically every dealership in the country is engaged in the program, the official Web site frequently crashes under the weight of all those forms, Johnston said.

"We're having people come in in the middle of the night to input the paperwork," he said. Ross said he hired someone just to deal with the program's paperwork.

Not every used car qualifies as a clunker and not ever new car qualifies as a replacement in the program. A visit to the official Cash for Clunkers Web site, www.cars.gov, provides consumers a way to see if their specific vehicle qualifies, and if so, for how much and if the vehicle they're thinking of buying will work under the program's rules.

Clunkers traded in must be destroyed once they've been disabled by something called Engine Freeze, a compound Ross described as "cyanide for cars, lethal injection for cars."

Neither Ross nor Johnston said they're convinced the program is the shot in the arm the ailing industry needs, but they're hopeful.

"I love the program. It's been a big success," Johnston said. "I think it's working, production is up. We'll have to see if it's sustainable or if we're just selling forward."

Ross said he thinks the program may be just what the doctor ordered.

"I think it's kick-starting something. I think it's built some momentum," he said. "But I'm the eternal optimist."

Governor Arnold Schwarzenegger supported the program's extension, saying in an official statement that, "In such a short amount of time this program has proven its worth. It has provided a much-needed economic boost and promoted the purchase of fuel-efficient vehicles that will protect consumers' pocketbooks and our environment."

But not everyone finds the program a boon. It's turning out to be a big bust for charities that take in donated cars, said Ron Marlette, executive director of Mission Solano, which operates a charitable car lot in Fairfield.

"One man's clunker is another man's coat," Marlette said, adding that while he hopes the program stimulates the economy, he's already seen a 40 percent decrease in calls about car donations.

"It's too early to tell how much we will be hurt by the program, but we know we can't compete with the government's checkbook," Marlette said. "Our donations were already down due to the economy as people are driving their old cars longer or brokering sales themselves. The Cash for Clunkers program could shut us down."

The vehicles donated to Marlette's program are also often provided to clients to help them get on their feet, and the Cash for Clunkers program's trade-in destruction requirement could make a lasting impact there, he said.

"But we'll weather it. We'll get through it," he said.

Contact staff writer Rachel Raskin-Zrihen at (707) 553-6824 or RachelZ@thnewsnet.com.

Consumers can still take advantage of the Cash for Clunkers program and receive a $3,500 or $4,500 discount for their trade-in vehicle when buying or leasing a new vehicle. Information on the program includes:

* The trade-in vehicle must be less than 25 years old.

* Only purchase or lease of new vehicles qualify.

* Generally, trade-ins must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements).

* Trade-ins must be registered and insured continuously for the full year preceding the trade-in.

* No voucher is needed, dealers will apply a credit at purchase.

* Program runs through Nov. 1 or when the funds are exhausted, whichever comes first.

* The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.

Source: The official Cash for Clunkers Web site, www.cars.gov.

q

According to the White House, based on the approximately 80,500 transactions logged into the National Highway Traffic Safety Administration's CARS system as of Saturday afternoon, the following preliminary observations can be made:

* CARS transactions are generating a 61 percent increase in vehicle fuel economy.

* This improvement will save a typical consumer between $700 and $1,000 per year in reduced gas costs alone. Also, consumers in the program will have safer cars, fewer repair costs, and their vehicles will release dramatically less air pollutants.

* Cars bought under the program are, typically 18 percent above the average fuel economy of all new cars, and 63 percent above the average fuel economy of cars that were traded in.

* The average Category 1 truck bought under the program is 10 percent above the average fuel economy of all new trucks, and 39 percent above the average fuel economy of Category 1 trucks that were traded in.

Source: Gov. Arnold Schwarzenegger's office