Cash for Clunkers Must be Extended

Wednesday, 05 August 2009 11:21

The government's Car Allowance Rebate System, better known as Cash for Clunkers, was expected to last four months, ending on November 1. Instead, the program, which was officially enacted on July 1 but didn't have its rules finalized until July 24, could run out of money sometime this week.

Dealers should know that the Department of Transportation has guaranteed it will honor all properly submitted deals executed before the program's official suspension, which has not yet occurred.

Cash for Clunkers has proven more popular than even the most optimistic dealer could have hoped. A combination of pent-up demand for new cars and government vouchers has brought consumers back to dealerships in droves. In just over a week, approximately 157,000 transactions have been submitted to the Department of Transportation for reimbursement. That's 157,000 sales that might otherwise not have been made, and 157,000 very good reasons to keep this program running.

Even consumers who discovered they were not eligible for the program have been making deals. The sales numbers for July are up a whopping 16 percent from June. That's a direct result of Cash for Clunkers, and dealers are ready to keep the momentum going.

But Cash for Clunkers doesn't just benefit dealers and their employees. The program benefits ALL Americans by:

• Giving American families access to newer, safer, more fuel efficient cars
• Leading to new manufacturing and manufacturing jobs
• Dramatically increasing state and local tax bases
• Allowing dealers to return to charitable giving and active community involvement
• Revitalizing the WHOLE economy. This is a stimulus program that actually works!

Already, the House of Representatives has passed a bill allocating an additional $2 billion to the program from funds already earmarked for stimulus spending. That money will be made available to the CARS program just as soon as the Senate passes a similar measure.

AIADA is urging its members to contact their senators and ask them to act quickly to keep Cash for Clunkers running. Let your Senator know - Cash for Clunkers is a tangible, rational stimulus program that is WORKING. Let's give it a chance to fulfill its purpose by stimulating our economy and greening our roads.

In the mean time, AIADA will continue to keep its dealers up to date on all the latest Clunkers news. Dealers are also encouraged to check the government's website - www.cars.gov/dealersupport - for updates.