The Cash for Clunkers program is coming to a close. The Feds announced they are putting the brakes on the Cars Allowance Rebate System or commonly know as Cash for Clunkers. They said that by Monday, August 24th at 8 P.M. EST. the program should have used all of the 3 billion dollars budgeted.
After talking to several new car dealers about the Cash for Clunkers program I have heard both negative and positive comments. Let’s start with the positive: dealers have been selling cars like crazy, making money, keeping people at the dealerships working. Now for the negative: Many dealers have run out of cars that they can sell that qualify for the Cash for Clunkers program. Not only have the dealers run out of vehicles, the manufacturers have also. Now that is a good thing, because now the factories are starting up and building cars again. A huge step in the recovery of the economy.
I still continue to hear dealers complaining about problems with the web portal that dealers use to load the Cash for Clunkers sales. Many dealer have been heard saying they continue having problems with the website and how time consuming the process is on inputting information. The one report I read said that 1.6% of the claims for sales made were paid to dealers. Two dealers that I talked to said they were paid on less than .05%.
Many dealers have stopped taking cash for Clunkers deals on Thursday August 20, 2009 after the announcement of the end date. The dealers are having so many problems trying to get deals in to the system that they do not want to do any more for fear of not being able to get them in the system.
The official deadline of Monday, August 24th at 8 P.M. EST. is when all the dealers have to have the claims in the system. It has been said that any claims after that time will not be paid. What happens if there continues to be problems with the website…..what happens to the dealers…?…..customer…?
We will wait and see, but overall it seems to have been a great boost for the Auto Industry.