Cash for Clunkers to Wind Down

The White House is now working on plans to wind down the popular Cash for Clunkers program. At the urging of car dealers, who want a defined end date for the program so they don’t get caught out on the incentive program, the Obama Administration may announce this week when the consumer incentive program will end.

Through Wednesday, Cash for Clunkers had resulted in sales of more than 435,000 vehicles and used $1.81 billion of the program’s $3 billion budget. Because of the slowness of the government in paying dealers for Cash for Clunker rebates, some dealers have voluntarily left the program. According to reports half of the 425-member Greater New York Automobile Dealers Association left the program claiming they could no longer afford to offer more rebates. About half of the 950-member Pennsylvania Automotive Association did the same. (Tire Review/Akron)