Only a week after the start of the program, the Cash for Clunkers program has officially been suspended. With intense popularity among consumers, confusion among dealers and speculation that cash has run out, the program appears to have been doomed from the start.
Rules governing the Cash for Clunkers program covered 135 pages, and required car dealers to scramble to find information the program’s official website says one Virginia Toyota dealer. Administering the program has been tough, admits some Providence car dealers, due to the complexity and high demand of the program. Additionally, engines of the so-called clunkers had to be destroyed prior to heading to the junk yard, creating logistical issues for some dealers. Plus, with useless junked cars on their lot, a dealer will be stuck with an unsellable vehicle if a deal isn’t able to go through.
As of last Thursday, nearly $221 million of the $1 billion had been paid out, according to the government. Meanwhile, Overland Park Ford Car Loans point out that some customers have speculated that the total $1 billion set aside for the program was actually already used up as a result of the sales influx stimulated by the program’s launch.
The Cash for Clunkers program states that those who traded in a vehicle that averaged 18 mpg and that purchased a car that was 4 mpg more efficient were eligible for a $3,500 voucher. Consumers that purchased a car that was more than 10 mpg more efficient were eligible for $4,500. Commercial Truck Washington DC says for those buying trucks, the new truck has to be 2 mpg more efficient than the traded vehicle.
No doubt consumers and car dealers alike are eager to see this program renewed. Hopefully, cash earmarked for the program can be retained as program has successfully helped bring consumers to showrooms in just a short period of time. (more…)