• Aug 20th 2009 at 4:58PM
  • 49
It's been a fun ride, hasn't it? The federal government's Cash for Clunkers program began with a bang on July 24th and, despite the original plan having it last until Labor Day, will officially end next Monday night (August 24th) at 8PM. The end date was announced today by U.S. Transportation Secretary Ray LaHood and takes into account what he calls conservative sales estimates that have the pot running dry sometime over the weekend.

As of today, C4C has recorded 457,476 sales worth $1.91 billion in rebates. The feds estimate about $400 million worth of rebates have yet to be submitted and are reserving another $100 million for administrative costs. That leaves $600 million left for what should be a very busy weekend on dealer lots.

Despite being a logistical mess, no can argue that C4C did exactly what it was designed to do: sell cars. Throughout the program's short life span, however, dealers were either ecstatic over the amount of metal they were moving or angry that their applications for reimbursement were either being rejected or not approved fast enough by the government.

Come September 1st, we expect the industry to report sales increases across the board. The real question is what happens on October 1st when they must report the first full month of sales after Cash for Clunkers. How far will sales fall without the government's gracious incentives? Stay tuned and we'll let you know.

[Source: Detroit News | Photo by GABRIEL BOUYS/AFP/Getty]



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    • 1 Second Ago
  • 49 Comments
      philswrx04
      • 6 Years Ago
      o look somethings working to stimulate the auto industry we must kill it off now.

      and if our government was not so power blinded they might actually realize that they threw our constitution out a while ago.
        • 6 Years Ago
        @philswrx04
        Typical Republican, wanting someone dead.
        • 6 Years Ago
        @philswrx04
        Stimulate what, you say? It's an "artificial" stimulation with no lasting effects... Especially when a majority of the money is going to foreign countries because the C4C program was idiotically designed to help companies that didn't need help to begin with. The C4C program should have gone towards GM and Chrysler and no one else.
        • 6 Years Ago
        @philswrx04
        The money shouldn't have gone to anyone. At all. When this bubbles pops the economy is going to be right back where it was before except we'll have even more debt to pay off. Can none of you see how this is not like every other boom and bust that government spending has caused?
        • 6 Years Ago
        @philswrx04
        Ray, my point was that if anyone should be getting the taxpayer's money, it should be the American economy- ie: American car companies. Ideally this program should have never existed.
      • 6 Years Ago
      "BREAKING: Cash for Clunkers ends 8PM Monday night"

      THANK GOD!

      Although this is quite funny that it is ending just as Ford and others have said they will boost production.

      Nothing like a glut of inventory and nobody to buy them...
      • 6 Years Ago
      they are ending the program just in time for the automakers to ramp up production. We all know that as soon as this program is over, no one is going to be buying cars, and we will be back in the same situation as before.
      • 6 Years Ago
      June press release: CARS aka Cash for Clunkers bill passes, Congress provides $1Billion to fund program through late fall.

      July press release: CARS out of money after five days, Congress to consider additonal funding.

      Later July press release: Congress approves another $2Billion in CARS funding to get to Labor Day, September 7th.

      August 2oth press release: CARS out of money again, program to cease TWO WEEKS before Labor Day. Congress on monthlong vacation.

      August 2010 press release: autoblog poster Luis dies from heart disease because the government didn't have the money to pay for his bypass surgery following healthcare reforms passed by Congress in 2009.

        • 6 Years Ago
        Post made my day. Isn't it fun to see those "gifted" tax-cheat guys at (BBR HQ) Bama Banana Republic HQ play around like that with your life.

        Here's a thought: "Obama's health care plan will be written by a committee whose head, John Conyers, says he doesn't understand it. It'll be passed by Congress that has not read it, signed by a president who smokes, funded by a Treasury chief who didn't pay his taxes, overseen by a Surgeon General who is obese, and financed by a country that's nearly broke. What could possibly go wrong?" -Rush

        Gore is a charity cheap bastard, look at his tax returns. Then look at his Carbon footprint.
        The NKorean "seal" mission by Billary was to rescue 2 women that work for Al GreenGore.
        Barney caused the Mortgage crisis.
        Pelosi needs medication. She better keep her Cadillac plan.
        I can go on and on...
        • 6 Years Ago
        DJ - If the full $4 billion would have been available from the start, there wouldn't have been such a first rush to compete for the limited funds the minute the program opened.

        And there wouldn't have been a SECOND rush when it was announced that the program was running out of the $1 billion, so buyers needed to rush in before it was gone.

        And there wouldn't have been the THIRD rush when the $2 billion extra was passed.

        And there wouldn't have been the FOURTH rush right now when people find out that the $3 billion ends soon.

        And there would still be $1 billion MORE available that would have been available even longer.

        So yes, without all of these factors that were caused entirely by Republicans blocking the original $4 billion, the whole thing would have went much. much smoother. And it would have lasted much longer because these multiple rushes would have been avoided.

        Or are you so intent on covering your eyes to the facts that you don't even recognize that this series of rushes were COMPLETELY the result of changing the original amount and then having to come back and provide additional funding?
        • 6 Years Ago
        DJ -- If the Republicans hadn't demanded the initial 4 billion proposed by the Democrats be cut to just 1 billion or they would filibuster, there wouldn't have been such a problem.

        It never ceases to amaze me when righties blame everyone else for problems they themselves created.
        • 6 Years Ago
        The point of my original post, which everyone else was able to figure out, was that Congress had no F'ing idea what they were doing when they created the program and second, they had no business creating it to begin with, much less messing with healthcare.
        • 6 Years Ago
        Hilarious!
        • 6 Years Ago
        On the day President Bush took office in 2001, the debt stood at $5.727 trillion. By September 2007 it had increased by 57 percent on his watch to $9,005,648,561,262.70, according to the Bureau of the Public Debt at the Treasury Department. To date, almost the entire projected Federal deficit of $9,000 billion over the next 10 years is still driven by the spending and tax policies of the previous Bush administration and the collapse of financial system in the U.S. during 2008, also under Bush’s watch and the commitment of $11,000 billion of taxpayer’s money, primarily by Bush’s administration, to bail out the financial sector.
        • 6 Years Ago
        @Nixon - I'm voting R next time just because of you.
        • 6 Years Ago
        Nice
      • 6 Years Ago
      why isn't anyone complaining about the $100 million administrative costs?
      at 50k salary (minus benefits and such) that's 2000 jobs for one year, just to process the requests?

      they must need some $500 hammers to sign with as well.
        • 6 Years Ago
        have u read over the 729B or some what stimulus bill that was past in the beginning of the year? there was something like 14B for education upgrades and 2B for administration cost in how to spend that 14B lol...It's called Government Pork Spending...bet my left nut there are a few that come out rich from all of it...
        • 6 Years Ago
        It's going to cost $1,000,000.00 to process all the paperwork and $99,000,000.00 goes to fund congressional fact finding missions and junkets to find out how people are liking their new rides.
      • 6 Years Ago
      Well, the government seems have done their best, just as the Inside Line says: As a sales motivator, Cash for Clunkers has certainly been good for stimulating car sales. But the government can only do so much to help.
      Although the program would end before we expected, and only run for a couple of weeks, it do contribute to the car industry, General Motors is enjoying a recent sales uptick and Chrysler had announced it would increase its production.
      http://www.blurty.com/users/replicajewelry
      • 6 Years Ago
      axio.matik,

      Are you seriously defending the idea of passing a bill, appropriating the money and then deciding on a plan of action?!?!? Do you realize how incredibly stupid that is?!?!? This kind of thinking is expected from a child, not a body of adults responsible for running our country! Nowhere in the real world can you go finance an idea or a particular course of action and then decide on how to go about it, only in government fantasy world is this possible.
      • 6 Years Ago
      too funny.
      • 6 Years Ago
      I wonder if there will be an extension again.
        • 6 Years Ago

        The program is OVER!!! No more extensions Avinash.

        I work at a small family run Ford dealer in PA. We didn't start accepting CARS deals until the program was OFFICIALLY UNDERWAY (unlike ALOT of other places and most Hyundai stores). We haven't been paid for ANY of the 26 or so C4C deals we have done, and yesterday we stopped doing them all together, and won't accept any more "clunkers". Some people are peeved we won't sell them a car under the program, but too bad. We haven't gotten paid and we are a small store. How about those mega dealers who have done over 200-400 C4C deals, and have $Millions tied up? They may not even make payroll? This program was a Cluster **** from the start, and it only got worse.
      • 6 Years Ago
      Que the worst sales slump in the past decade.
      JennyJen40
      • 6 Years Ago
      how funny. i knew it sounded to good to be true. my friends father owns a car dealership n they are not getting the money promised to them from the program. the dealerships are getting shiPed on.
        • 6 Years Ago
        @JennyJen40
        Hey Nixon, looks like you got this whole thing figured out. Maybe you should have been put in charge of this program. Where exactly did you come up with that conspiracy theory? Too many episodes of the X-files? You are so in the know that you could have made it big as a life criminal. This is a government program Einstein, not a dealer program.
        • 6 Years Ago
        @JennyJen40
        JennyJen40 - maybe if your "friends father" who supposedly owns a car dealership hadn't have pre-written deals for weeks before the program began (against Gov't policy) trying to game the system, there wouldn't have been such a log jam in applications.

        If he wouldn't have had employees logging on at 12:01 AM EST the first day the program was supposed to BEGIN (hours before any dealership was supposed to even open for their FIRST deals to be written) with enough deals to crash the entire system, the system wouldn't have crashed the first day. These deals technically shouldn't even qualify because they were made before the program officially began and were post-dated!

        Instead of paperwork for new deals that were made starting the first day, there was an instant backlog of weeks worth of deals that were falsified to make them look like they were actually done on the day the program began. The end result was a jam of applications that were the DIRECT RESULT of dealers trying to game the system.

        So forgive me if I don't shed a tear for your friend's poor father who tried to game the system along with every other dealer out there, and caused their own problem.

        ------------------------------------------------------------------------

        While he's at it, if he could properly void the car titles so they can't be fraudulently sold to title stolen cars, that would speed things up too. That is one of the top reasons why paperwork is being rejected and payments are being delayed. If the titles are not properly voided, the titles and VIN plates can still be sold long after the car has been destroyed to rings of car thieves who could use these titles to steal our cars and then sell them back to unsuspecting folks like ourselves under the un-voided titles of the clunkers. So pretty please, have your supposed friend's supposed father properly void these titles so we don't all get ripped off, and so he can get his money faster. OK?
        • 6 Years Ago
        @JennyJen40
        Actually Nixon, dealers were encouraged to start taking the trade ins weeks before the submission site was open.
      JennyJen40
      • 6 Years Ago
      funny that the program isnt sending the money to the dealerships as promised. wonder how long that will take.
        • 6 Years Ago
        @JennyJen40
        CFC only started 3-4 weeks ago, and the entire program had to be created from scratch in the 3 weeks between when the bill was signed and they started accepting applications. I'd like to see you try to set up a $1 billion dollar program in 3 weeks. Besides, standard business payment terms are Net 30 Days. It hasn't even been 30 days since the program started, so all the complaining from the dealers seems a little premature.
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