If you haven’t taken part in the “cash for clunkers” program,time is rapidly running out! August 24 is the last day to trade-in your gas guzzler for a new fuel saver! It may not help the poor,but it has provided some stimulation for the economy.But,the dealers who have seen an increase in business are still waiting to be reimbursed by the government for accepting these clunkers.
Here’s more on that from CNN Money:
“Car buyers trading in a vehicle must prove that the vehicle has been titled to them for at least a year and, in most states, that the car has been insured for a year.
Dealers are required to disable and destroy any clunked vehicle so that it cannot be resold.
Dealers have complained that the Transportation Department has been slow to process rebates — slowing their rebate checks and putting them in a financial squeeze. In response, the department recently hired additional personnel.
The program proved wildly popular, running through its initial $1 billion in its first week and leading lawmakers to approve an additional $2 billion in funding on Aug. 7.
Cash for Clunkers has been credited with boosting auto sales, sparking several automakers to re-open closed plants in an effort to refill ravaged inventories. Industry analysts at J.D. Power and Associates forecast that August retail auto sales, a figure that excludes fleet sales to businesses, will pass the 1 million unit mark, thanks largely to the program. That would make it the first million-plus retail sales month in a year.
“Improved consumer confidence and credit availability during the past six months have combined with the to lift industry sales out of their slumping year-to-date levels, which have been down approximately 35% year-over-year,” said Gary Dilts, senior vice president of global automotive operations at J.D. Power and Associates, in a statement.
Overall auto sales are still expected to be down slightly, mostly due to low inventories hampering fleet sales, J.D. Power said. The company has boosted its overall projected sales for the year due to the success of the program.What remains to be seen now is where things go from here.
“The effectiveness of the ‘cash-for-clunkers’ program will be judged in a number of ways, but a key measure will be how does the automotive market respond to the absence of the ‘clunkers’ incentive to buy now?” said Jack Nerad, editorial director at auto pricing trackers Kelley Blue Book, in a statement.”(End of Excerpt) Read the rest here.
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