When Cash For Clunkers officially expired for consumers at 8:00PM on August 25, 2009, roughly $2.8 of the total $3 billion allotted for the programs use had been spent – on paper, at least. In reality, dealers had yet to see a dime of their promised rebates, and many had actually ended their participation early when triple digit rebate tallies threatened to put them in the red. For every dealer that praised CARS for the business it drove in, there were two more who were on the brink of losing their shirts if they didn’t see some cash flowing back soon.
Today, three weeks after the carnage, Transportation Secretary Ray LaHood says $2.5 billion has been approved for release, which accounts for about 85% of the 690,000 rebate applications submitted. By the end of September, LaHood promises every dealer will be reimbursed, followed shortly by hell freezing over.
Source: Detroit News
Image Cred: AP Photo