CARS, Cash For Clunkers Suspended, Funds Depleted in Just Days

By Eric Loveday

Eric Loveday

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Eric Loveday is a car enthusiast with a love for everything automotive. He purchased a 1970 Chevelle at age 16, quickly outgrew its dated engineering... More

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1,826 views Jul 30, 2009

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If you were thinking of trading in that old clunker of yours for a new vehicle under the CARS Cash Allowance Rebate System, you may have already run out of time.

The funding for the program at $1 billion is feared to be exhausted in just a few short days since the official start of the program.  Now, the government has suspended the program as they tally how much money has been given out through the system.

The surge was on as dealerships sold in record numbers in the past few days.  Several dealers even reported selling out of all qualifying vehicles on their lots.  New buyers came into the dealerships and many purchased their first new vehicles ever.

The avalanche of customers taking advantage of the incentive program really took everyone by surprise.  The government intended for the program to last until November, at least that was the thought, but it could very well be over now.

According to Michigan Senator and strong supporter of the program Debbie Stabenow, more than 200,000 vehicles were sold under the program since its official launch which has nearly depleted all funds in just days.

The program success is simply amazing.  200,000 old, inefficients vehicles off our roads forever in just days and 200,000 new, efficient vehicles in the hands of those lucky enough to get in before funds run out.

Hopefully the programs success will trigger a similar program so more interested buyers will get a chance to trade in their clunkers.

Source:  Reuters.com