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Cash for clunkers program rolling right along
Transportation Secretary, Ray LaHood, said today that 16,000 U.S. auto dealers have applied to participate in the “cash for clunkers” program.
If you still haven’t heard, the government is trying to help jump-start slumping auto sales through the program, giving consumers new-vehicle credits of as much as $4,500 for turning in older cars.
“We’re very excited about the tremendous interest in this program,” LaHood said today at a news conference to outline the program. “We think it’s going to turn into a good news story for many communities that have been hit hard by the recession.”
“Hit hard” is quite the understatement. Sales of cars and light trucks fell to 13.2 million in ‘08. The average for the past decade has been 16 million.
According to LaHood, the Transportation Department has processed 15,893 dealer applications. The law took effect on July 1, and the U.S. published rules for the program July 24. US lawmakers estimate that the cash for clunkers program could create 250,000 new car sales.
Cash for clunkers will end Nov. 1 or when the $1 billion in subsidies expire, whichever occurs first. Congress must decide later this year whether to approve legislation extending it into 2010.
“With the tremendous public interest leading up to today, we anticipate that the $1 billion in funding for the cash for clunkers program will go quickly,” John McEleney, chairman of the McLean, Virginia-based National Automobile Dealers Association, said in a statement today.
Representatives Sander Levin of Michigan and Betty Sutton of Ohio, both Democrats, said at the press conference that they may try to extend the program if the initial allotment is exhausted swiftly.
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Many clunkers won’t be eligible for a voucher because of all the restrictions. A good option, for those people, is charity car donation. The donor gets a tax deduction instead of a voucher.