Cash for Clunkers Program Is Ending
Government Vouchers for Cars – Federal Vehicle Rebates Winding Down
Aug 23, 2009
On Thursday, August 20, 2009, the United States Department of Transportation (DOT) announced that the Cash for Clunkers program is ending Monday, August 24, 2009. The announcement is posted in PDF format on the Car Allowance Rebate System (CARS) website, cars.gov.
Cash for Clunkers Program Ending
According to the DOT, the Cash for Clunkers program has revitalized the auto industry. From late July through mid-August, car dealerships were flush with customers eager to take advantage of the $3,500 and $4,500 government vouchers for cars. Positive effects of the CARS program include:
- Vehicle inventory is depleted, which is good for manufacturers and dealerships.
- General Motors and Ford are resuming production, which means more work for existing and perhaps laid off workers.
U.S. Government CARS Program Winding Down – When is Cash for Clunkers Officially Over?
Technically, the CARS program can still run as long as funding exists; however, the DOT believes if it cuts off dealer reimbursement application submissions on August 24th, enough funding will exist to cover transactions through that date. Because there is a lag between a car sale and application approval, it is possible that some of the total funding will remain once all government voucher credits have been processed. But it’s too early to tell that yet. For now, the DOT is being conservative with its cutoff date.
Dealers have until 8 p.m. on Monday, August 24th, to submit applications for reimbursement.
Cash for Clunkers Ending – Government Car Rebates Stopping for 2009 Vehicle Purchases
The DOT reported that approximately $1.9 billion worth of government voucher credits for cars have been approved as of August 20, 2009. Dealers across the country will be spending the final weekend closing out pending transactions. Consumers should expect new clunkers transactions to halt almost immediately.
Last-Chance Federal Vehicle Rebates – Is It Too Late to Get a $4,500 Auto Voucher Credit?
Only those lucky enough to have already gathered the necessary paperwork and researched the list of qualifying cars will have a shot at getting a $3,500 or $4,500 automobile credit over the final weekend.
Obama Stimulus Plans – Appliance Program to Follow Car Allowance Rebate System (CARS)
The DOT has taken steps to make the Cash for Clunkers program run seamlessly for dealers and consumers, including handing out federal vehicle rebate processing duties to more than 1,100 individuals (not all DOT employees – some are private contractors).
The good news for Americans is that there is another type of “clunkers” program in the works. But this one is for appliances, not vehicles. Beginning very soon, most states will roll out so-called “cash for clunkers appliances” programs using funding from the 2009 American Recovery and Reinvestment Act of 2009.
Related economic stimulus articles:
2009 Tax Rebates, Second Stimulus Checks
Obama’s Car Tax Break – Economic Stimulus Details
Resources:
American Recovery & Reinvestment Act of 2009
Car Allowance Rebate System website, cars.gov
Consumer Assistance to Recycle and Save Act of 2009
Secretary Chu Announces Nearly $300 Million Rebate Program to Encourage Purchases of Energy Efficient Appliances retrieved from energy.gov on August 20, 2009.
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