‘Cash for Clunkers’ Program Will Close on Aug. 24 (Update2)

Let’s see: first it ran out of money (“a victim of its own success“), then they got more money, now the government is closing it down for reasons I can’t really figure out. However, because it’s an inefficiently run government program, they had to hire an additional 800 people (on top of the 200 people originally manning the project) to help process the dealer requests for the money the government is putting up. In the meantime, dealers are having to front the rebate money to customers and wait for the government to eventually reimburse them, which in some cases, is causing financial problems for the dealers. And the government calls this a “success.” Can’t wait to see health care.

From Bloomberg:

Aug. 20 (Bloomberg) — The U.S. “cash for clunkers” vehicle trade-in program, credited with reviving auto sales and criticized by dealers for slow reimbursements, will close on Aug. 24, Transportation Secretary Ray LaHood said.

The clunkers plan, which offers auto buyers discounts of as much as $4,500 to trade in older cars and trucks for new, more fuel-efficient vehicles, has recorded more than 457,000 dealer transactions worth $1.9 billion in rebates, the Transportation Department said in a statement today.

The deadline will give car dealers and buyers time to complete purchases and submit applications for rebates from the remainder of the $3 billion provided by Congress, the department said. Dealers have complained of difficulty running their businesses while awaiting payment in the program, and the agency said it’s adding workers to help process claims faster.

Read the rest:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aMeb13lYvGf4

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