Report: Cash-for-Clunkers Out of Cash Again

Report: Cash-for-Clunkers Out of Cash Again

The National Automobile Dealers Association (NADA) has asked the U.S. government to suspend the Cash-for-Clunkers program immediately as it believes the $3 billion in earmarked funds have already been used up.

NADA Chairman John McEleney told Automotive News that based on a survey of its dealers it believes the $3 billion in funding could be used up as of today. But according to the Transportation Department, only 411,624 claims have been filed, accounting for a total of $1,72 billion. The difference says McEleny is due to rejected claims that have yet to be re-submittted.

Transportation Secretary Ray LaHood, has said that the $3 billion should last until Labor day, but NADA’s track record is also pretty good, as the group was the one to raise the alarm that the initial $1 billion in funding, intended to run for several months had dried up in just two weeks.

Earlier in the week LaHood said that the Transportation Department is readying a plan to wind-down the Cash-for-Clunkers program, commenting that even if the fund dries up, the dealers will still be reimbursed.

[Source: Automotive News]

  • Joe Smoe

    How many of the new cars sold under program don’t even average 20MPG.

    The purpose of this program was to get fuel efficient cars yet other articles states that Cadillacs and F-150s are being purchased. Tehy should set a limit on the MPG it must get…

    this is just another hand out to the car manufacturers w/o giving htem money directly.


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