The Cash for Clunkers, Clunkers or the official name Cash Allowance Rebate System (CARS) program was signed by President Obama in June and began on July 27, 2009. Vehicles purchased after July 1, 2009 are eligible for refund vouchers worth $3,500 to $4,500 on traded-in cars with a fuel economy rating of 18 miles per gallon or less (fuel-efficient). The program will expire on Nov. 1, 2009.
Details of the program were mapped out by the National Highway Traffic Safety Administration (NHTSA). Unfortunately, interest in the Clunkers program peaked on July 29, 2009, and demand has stalled according to a report from Edmunds.com. The report which discussed internet shopping data said if current trends continue auto purchases will fall back to pre-Cash for Clunker levels by August 20, 2009. The report also predicted auto sales will improve over the summer as customers shop for bargains before the new car models hit the showroom.
Many people are show interest in purchasing a new car but do not qualify for the rebates which are affecting car sales. The White House hopes the rebates will increase vehicle sales which are down 3-6 million from 2007 and 2008 sales.
Approximately 16,000 auto dealers signed up to participate in the program. A government hotline was setup and has handled over 45,000 calls from people seeking information. A website for the program http://www.cashforclunkers.com/index.htm has registered 1.5 million hits since August 7, 2009.
Some dealers said junkyards in their area are not prepared to handle the inventory of older cars expected to be scrapped. Other dealers said the 136-page instruction manual provided by the government is confusing. Some car buyers have been disappointed that their cars don't qualify for the program.
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