No one predicted just how popular the “cash for clunkers” program would become. $3 billion was poured into Clunkers, and the funds were depleted in virtually no time at all as auto buyers went into the car dealer shops in droves trading in their gas-guzzlers for brand-new, fuel-efficient cars.
When the legislation was signed by the president back in June, $1 billion was set aside for the “cash for clunkers” program to last all the way to November. But by early August, the administration was convinced it needed to release an additional $2 billion to keep the program running. The extra funding was supposed to last through Labor Day.
But the $3 billion total is about to run dry, with over 457,476 “clunker transactions” submitted by dealers. To ensure that dealers will be reimbursed for “clunker sales,” the Obama administration is planning to end “cash for clunkers” funding by August 24, Monday, 8pm EDT.
Transportation Secretary Ray LaHood assured that by implementing the cut-off period, there will be enough money left to cover all pending dealer applications submitted before the deadline. He also pointed out that dealers can resubmit rejected applications beyond the cut-off date.
Action-packed weekend
The Department of Transportation is urging dealers to focus on completing and submitting pending deals immediately to expedite payment.
Customers must submit all necessary paperwork to their dealers. This will make it easier for dealers to process last minute clunker sales before the Monday deadline.
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