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Stick a Fork In It: Cash For Clunkers Will End on Monday

Posted in auto industry, Car Buying, Cash for Clunkers, New Cars, Newsworthy by Alex Kierstein | August 20th, 2009 | 1 Response |

Clunkers Used Car Dealers

Well, here we go again. Cash for Clunkers is out of money, and they’re stopping the program (again) on Monday. That gives dealers until 5 p.m. Pacific time to get in their applications for reimbursement. Of course, with the number of dealers who’ve already withdrawn from the program due to the administrative snafus that prevented them from getting reimbursed, we imagine the idea of a sudden last-minute flurry of desperate applications with send a shudder through any salesperson worth their salt. Consider this – as of today, the government has only paid out $145 million, or just around 7%, or the nearly $2 billion at their disposal. The government is quick to blame this slow turnaround on mistakes in the submissions process on the dealership side of things, but who knows what’s really going on?

With so much emphasis on these administrative issues, it’s sometimes hard to remember that the program has generated 457,000 new vehicle sales since it began on July 24th. Has the program been a victim of its own success? The administration would like you to think so – in a radio interview today, Obama said, “And we’re now slightly victims of success because the thing happened so quick, there was so much more demand than anybody expected, that dealers were overwhelmed with applications.” Speaking of overwhelmed, we’ll be very interested to track the tally of last-minute clunker sales this weekend. Stay tuned!

[Source: NYT]

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One Response

  1. jasonbradyut says:

    Good…, as they say, all good things come to an end. Actually, this could be considered a BAD thing b/c it’s CRAZY, we are giving people money to live more vicariously and lavishly than before all this economical bust took place? What are we doing? Spoiling every single last American? Let’s learn to live in moderation, then we wouldn’t have so much debt…Well, the fish sticks from the head..so the head is the While House…right?