Is Cash For Clunkers Out Of Money, Again?

Illustration for article titled Is Cash For Clunkers Out Of Money, Again?

We've been watching as the amount of funds in the Cash For Clunkers kitty quickly dwindles, and now the National Automobile Dealers Association is asking for guidance because they believe there's no money left.

Given the current "burn rate" of dollars it's been estimated that there's less than 19 days left of the program. The latest figures from the Department of Transportation show 435,102 submitted with a dollar value of $1.814 billion used. This should, in theory, leave $1 billion left. But that it assumes there's real-time tracking of the submissions and, so far as we can tell, there isn't.

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We've actually inquired to the NHTSA multiple times how, specifically, they were going to wind the program down. We've yet to get an answer but Secretary of Transportation Ray LaHood said today they were going to explain what, specifically, is happening. Until then dealers are worried there transactions will be on the other side of the program and not be reimbursed.

In fact, the NADA says "In view of the foregoing, dealers who accept additional "clunker" deals face a growing risk that they may not be reimbursed."

Photo Credit: GABRIEL BOUYS/AFP/Getty Images

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DISCUSSION

bluebmwguy-old
BlueBMWGuy

I am a Locksmith, On Monday, I re-keyed 4 newly purchased vehicles that were part of the first "cash for clunkers" program. I had 2 Mini Coopers, a Toyota Yaris and a Honda Civic. The cars had between 900 and 1200 miles on them and all were 4 payments behind.

The one female owner said she had been out of work for over a year and traded in her "clunker" and purchased the car in order to land a better job.

Besides putting us into further debit with the $4500.00 incentive, just imagine how the recent repo'd cars will effect our economy. and all 4 cars were from the first billion dollars..imagine how many more will come to my shop to be re-keyed.

They say our economy is improving, I say their full of $#!*.