By Charlie Daehne
The government Car Allowance Rebate System, more affectionately known as Cash for Clunkers, might have been too successful in its attempt to assist the ailing automotive industry.
Within a week of the auto-purchase program’s official start on July 24, the allotted $1 billion was nearly exhausted.
Before Cash for Clunkers could go “clunk,” members of Congress voted to extend the program to Nov. 1 with an additional $2 billion.
As the program began, people flooded into local dealerships eager to cash in their clunkers for a more fuel-efficient new cars. Dealers could not keep up with the demand.
Sales Manager John Hall of Sunset Chevrolet in Sumner said more new cars are leaving the lot than ever. Sunset continued to accept trade-ins through last week unlike other dealers waiting to be reimbursed.
“There’s been a lot of interest from the public,” said Hall, whose sales are up 25 percent from last month. “It’s never been a better time to buy a car.”
He said the CARS incentive benefits the customer looking to buy as much as the dealership selling the vehicle. America loves to buy cars, he said.
Hall expects the extra $2 billion will not last much longer than the first billion. He said consumers should “be on their toes and do their homework now,” before the crowds rush back to dealerships across the country. It is a supply-and-demand issue and cars will go fast, he said.
Sales associates of Riverside Ford in Sumner said they are short-staffed due to the increased business.
Cash for Clunkers was originally initiated in European nations to revitalize sales of failing carmakers.
The program was received with tremendous success especially in Germany, increasing sales up 29.5 percent, according to official records.
The program allows owners to bring in their gas-guzzling vehicles for up to a $4,500 cash allowance toward the purchase of a new car based on the increased fuel economy. The goal of the auto program is to stimulate car sales and prevent further environmental damage by removing vehicles from the roadways that do not meet the fuel-efficiency requirement.
Under the CARS Act, cars, trucks or sport utility vehicles turned in must meet the following requirements:
• The vehicle’s combined fuel economy rating must be 18 mpg or less.
• Vehicles older than 1984 are not eligible.
• The vehicle must be registered and covered by insurance
• The vehicle must be roadworthy and running.
The traded in vehicle is crushed and recycled.
The Better Business Bureau stresses that consumers be cautious of potential scams. It said that before legislation for the program was passed, Web sites were offering registration vouchers for customers in exchange for personal information and Social Security numbers.
Robert W. G. Andrew of the Better Business Bureau for Alaska, Oregon and western Washington, said identity thieves were taking advantage of the infant system and culling sensitive information from consumers.
Vouchers and registration are not required to participate in the program and only dealers registered with the federal government are permitted to offer the trade in allowance.
