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Cash for Clunkers winding down
Ford vehicles are offered for sale at a in Countryside, Illinois. With the help of the U.S. government's 'Cash for Clunkers' program, Ford Motor Co. reported an increase of approximately 1.6 percent in U.S. sales for July in comparison to the same month last year. It has been almost two years since Ford has reported a U.S. sales increase.
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Steve Chiotakis: It could be a busy weekend for car dealers. The $3 billion Cash for Clunkers program is coming to an end. The Obama administration announced yesterday that the popular trade-in program will wind down Monday night. Marketplace's Amy Scott reports.
Amy Scott: The Obama Administration says dealers have sold more than 450,000 vehicles through Cash for Clunkers so far, with the government kicking in $2 billion in rebates. That leaves another billion dollars in the program. Officials say that should last through Monday's 8 p.m. Eastern deadline.
But some dealers have already stopped offering the incentives. They've complained about delays in getting reimbursed by the government. On a talk show yesterday in Philadelphia, President Obama said the money is on the way.
PRESIDENT BARACK OBAMA: This is actually a high-class problem to have, that we're selling too many cars too quickly. And there's some backlog in the application process. It is getting fixed.
The administration says it's tripled the number of workers processing applications. Transportation Secretary Ray LaHood called the program "a lifeline to the automobile industry." Carmakers have rehired workers to boost production. But analysts say the burst of demand could take a bite out of sales in the fall.
In New York, I'm Amy Scott for Marketplace.
People say it is a good idea to negotiate the new car price before you tell the dealer that you have a clunker! Henry Blogger www.cashforclunkersfacts.info http://www.cashforclunkersfacts.info
