The government's cash for clunkers program hasn't even officially begun, and some are already calling for an extension of the program. Left Lane News reports, "lawmakers on Capitol Hill are said to be mulling an extension for the scrappage program. Congress could revisit the incentive program as soon as this fall."
The federal government has set aside $1 billion for the current program, which provides credits to consumers for the purchase of a new car when they turn in an older, less fuel efficient one. The program is set to start July 23 (though some companies have started accepting trade-ins already) and end in November or when the money runs out -- whichever comes first.
The push for an extension, not surprisingly, comes from the auto industry. Left Lane News reports that Dave McCurdy, president of the Alliance of Automobile Manufacturers, told Automotive news that as the program stands now, it may not be enough to give the flagging auto industry the jolt of sales it needs.
Despite questions about if the program will be enough to kick start sales, dealers are excited. Reuters reports, "dealers say the program would likely help their profitability once it is fully up and running." Reuters quotes one car dealer as saying, "We're anticipating that ... we'll get up to 15 to 20 percent increase in total volume, which will help out the overall dealership going forward." NPR interviewed Brian Benstock, a Honda dealer in New York, who points out that cash for clunkers won't just help dealers. Benstock said, "Because dealers are spending additional money for advertising, dealers are getting direct mail campaigns prepared, we're making arrangements with the salvage companies to take these other cars from us," contributing to the wider local economy.
Dealers aren't the only ones hoping to take advantage of the program. Tulsa's KOTV6 reports that the program "is now on the radar screen of about three in four new-car buyers."
If you're interested in the Cash for Clunkers program, check out our Cash for Clunkers page. If you already know which car you want, you can contact local dealers here. For the latest news on the program, check out Cash for Clunkers news.
