Cash For Clunkers Program Ends Monday

Illustration for article titled Cash For Clunkers Program Ends Monday

The Department of Transportation seems as worried as everyone else about the depletion of funding, and has decided to end the Cash For Clunkers program effective 8:00 PM Monday.

This date seems to be a line of demarcation. Early reports suggest anything falling before it will be accepted (assuming it qualifies) and anything after it will not be counted. Exactly how much money will be left over, what happens if they're in the red, or what sales will do after the program ends remains to be seen.

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These dealers complaining how much they are hurting because the government doesn't pay the rebate immediately is total and complete BS.

Without cash for clunkers, they would be paying say 6% interest on a $20,000 unsold vehicle each month. Say thats $100.

With CFC, the $20K cars sells. The dealer pays off $15K of the loan, makes a $500 or so profit on the sale, reduces inventory, and only have to pay to borrow the rebate money to cover the rebate until Ray LaHood pays up. The interest on the rebate loan would only be about $22 for a month.

So they reduce inventory, make a profit, and reduce carrying costs. Oh, and whine about it.

Give me a break.