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Govt to suspend 'cash for clunkers
http://finance.yahoo.com/news/AP-sou...1&asset=&ccode=
WASHINGTON (AP) -- The government plans to suspend its popular "cash for clunkers" program amid concerns it could quickly use up the $1 billion in rebates for new car purchases, congressional officials said Thursday.
The Transportation Department called lawmakers' offices to alert them to the decision to suspend the program at midnight Thursday. The program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.
The congressional officials spoke on condition of anonymity because they were not authorized to speak publicly.
A White House official said later that officials were assessing the situation facing the popular program but auto dealers and consumers should have confidence that transactions under the program that already have taken place would be honored.
Rae Tyson, a spokesman for the National Highway Traffic Safety Administration, which administers the program, declined comment.
Congress last month approved the Car Allowance Rebate System program, known as CARS, to boost auto sales and remove some inefficient cars and trucks from the roads. The program kicked off last Friday and was heavily publicized by car companies and auto dealers.
Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns about large backlogs in the processing of the deals in the government system, prompting the suspension.
A survey of 2,000 dealers by the National Automobile Dealers Association found about 25,000 deals had not yet been approved by NHTSA, or nearly 13 trades per store. It raised concerns that with about 23,000 dealers taking part in the program, auto dealers may already have surpassed the 250,000 vehicle sales funded by the $1 billion program.
"There's a significant backlog of 'cash for clunkers' deals that make us question how much funding is still available in the program," said Bailey Wood, a spokesman for the dealers association.
The clunkers program was set up to boost U.S. auto sales and help struggling automakers through the worst sales slump in more than a quarter-century. Sales for the first half of the year were down 35 percent from the same period in 2008, and analysts are predicting only a modest recovery during the second half of the year.
So far this year, sales are running under an annual rate of 10 million light vehicles, but as recently as 2007, automakers sold more than 16 million cars and light trucks in the United States.
Even before the suspension, some in Congress were seeking more money for the auto sales stimulus. Rep. Candice Miller, R-Mich., wrote in a letter to House leaders on Wednesday requesting additional funding for the program.
"This is simply the most stimulative $1 billion the federal government has spent during the entire economic downturn," Miller said Thursday. "The federal government must come up with more money, immediately, to keep this program going."
Brendan Daly, a spokesman for House Speaker Nancy Pelosi, D-Calif., said they would work with "the congressional sponsors and the administration to quickly review the results of the initiative."
General Motors Co. spokesman Greg Martin said Thursday the automaker hopes "there's a will and way to keep the CARS program going a little bit longer."
Out of money already!
I was all ready to jump on this program. I have a '94 Toyota P/U with a cap on it. I hardly ever drive it anymore. I figure on the outside it is worth $2500, so I was already to hand it over for the $4500. But when the plan finally cleared the gate last week, the fine print was that your clunker had to have an epa gas rating of 18 or less, and they spec'd the Toyota at 22.
If they would revise the eligibility, I would still jump on it.
WoW...only in America could you get the Government to reach into the pockets of your friends, neigbors, and strangers to help you buy a car...I am glad it has ended...
The other thing it will do is artificaly depress the scrap steel market and that will allow China to take advantage of the low scrap prices...
Way to go Congress and Senate...
I say vote them all out and start new from the Prez. on down...
Last edited by Cass; 07-31-2009 at 07:17 AM.
I was ready for this one. Dumped my old Ford Exploder for a new Honda CRV. Obama gave me $4500 bucks for the old Ford, plus a couple hundred for scrap value.
Obama gave you nothing...I gave it to you along with everyone else...
Obama owns nothing...
The Socialistic leaning Government in power took it from everyone and handed it out to try and garner votes...
My opinion about the votes...
Jesus Christ even my 1999 Rav 4 does not qualify ..... EPA MPG of 21!
I think the program should go. The US really does not have much of a car industry to save anyway.
Now if it was a Japanese or a German car company then that would be a different matter.
But I can live without a Ford, or a Cadillac or a Lincoln.
US manufacturing really has come down to the Zoeller sump pump.
The clunker program has been around since like Monday and it's over by Thursday. It kinda shows just how miserably this government can manage something; and they may have spent a billion dollars we don't have.
But then the supposed success of this program shows how they could have actually stimulated the economy months ago had they given every American $X,*** instead of sitting aside $787 Billion to dole out only 6-13% of it by now so they can throw it into democrat controlled areas just before the 2010 elections.
ummmm I just heard that next week congress is planning to dump another $2B we don't have into the clunker program. I think I heard it is coming out of the 'stimulus' funds...
Click Here to learn how to correctly size or program a water softener.
oh yeah
quote; WoW...only in America could you get the Government to reach into the pockets of your friends, neigbors, and strangers to help you buy a car...I am glad it has ended...
You should have been in AZ a few years ago when people were getting a lot more than that to purchase dual fuel vehicles. And once they got them, usually for free once they received the rebate, they NEVER filled or used the LP gas tank.
Okay, for my friend who couldn't find this link, lol, here it is again, LOL.
It is interesting to watch.
http://www.youtube.com/watch?v=pM30nqfasyU
How come they don't have cash for klunker boats and RV's for that matter how about appliances, snowmobiles and every other product older than 10 years? And just how long before all the folks that sell such things set out for Washington asking that very same question? Yet another stab by the administration at turning this country into a socialist nation. I feel bad for all them poor folks that can only afford a $500.00 car because there ain't gonna be any left to find. Yet another ploy to make us all dependent to the government for everything in life that we are too damn stupid or lazy to go out and work for.
Can't do commerical vehicles either.
Last edited by Cookie; 08-12-2009 at 04:46 PM.
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