Cash for Clunkers Clunked Out
I promised to keep you updated through the Cash for Clunkers chaos and now – the least surprising end to the story – the program is kaput!
On Monday, August 24, the government ended the popular Cash For Clunkers program because it has already run out of its second round of funding. In order for dealerships to be reimbursed, they had until 8 pm EST on Monday to submit the 13-page application for any rebates processed. This deadline can only mean one thing, swarms of people headed to showrooms over the weekend.
The program did succeed in bringing a surge in demand for cars, but many dealers are actually happy with the end of such a confusing program, which took too long to process reimbursements.
As of August 20, the Transportation Department had repaid only seven percent of the money dealers had requested. With the program at an end, the government will add on to the size of the work force assigned to handle reimbursement applications.
Even with the extra $2 billion added on to the program, it took almost no time for funding to deplete again, and the government does not plan to add on a third installment. Some dealers could end up having to write off the unpaid credits if funding is exhausted before all reimbursements are made. So, hopefully, if you are in the market for a new car, you headed on over to a car dealership this past weekend!
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Tags: car purchase, cash for clunkers