Yes, the cash for clunkers program is ending much sooner than expected. Due to high cost of the program (along with complaints that reimbursements are not coming fast enough), the US government has decided it will end the famous cash for clunkers program on Monday – more than two months ahead of its supposed end.
The sudden halt means new-car showrooms are likely to be flooded by last-minute shoppers over the weekend. Dealers have until 8 p.m. Eastern time on Monday to submit the 13-page application to be reimbursed for the rebates they are giving out under the program.
Although the program has brought on a welcome surge in demand for cars after months of dismal sales, some dealers will be glad to put it behind them because it has been plagued by confusion and processing delays.
GM has already offered its help by providing cash infusions to the dealers but it sure wouldn’t be enough. Well after all, GM does not have a car in the top 10 most bought vehicles under this program.
I’m actually surprised they even expected/hoped for such a late ending to the program when just about a million dollars was used up in a span of a few days. So it sold a lot of cars. But still not a fan. Never will be. And read this:
If the funding is exhausted before all reimbursements are made, some dealers — and possibly G.M. — could end up having to write off the unpaid credits. The administration does not plan to seek a third installment of funding.
Yet another crisis for the dealers?
Via the NYT here.