The federal government's much-hyped Car Allowance Rebate System, which will give Americans up to $4,500 toward the purchase of a new, more fuel-efficient car when they turn in an older, less-efficient car for destruction, has been delayed. Planned for launch today, the program will now officially kick off Monday morning.
A government website devoted to the program originally listed today as a start date, but was updated this afternoon to read, "Starting on July 27, consumers will be able to take advantage of this program and receive a $3,500 or $4,500 discount from the car dealer when they trade in their old vehicle and purchase or lease a new one."
Pittsburgh ABC affiliate WTAE-TV is reporting that a computer crash is the cause of the delay. "Fifteen minutes after a federal computer system that car dealers use to register for the Cash for Clunkers program was put online, it crashed due to the overwhelming demand," the station reports. "The system came back online just before 10 a.m., about five hours later," however, dealers calling into the system this afternoon are reportedly greeted with a message that says, "We're sorry, the system is down right now. We are aware of the problem. You will not be able to register until the problem is fixed."
A delay in implementing the program could cause significant confusion through the weekend. Kicking Tires notes, "Many dealers locally are already advertising the federal incentive, and one at least one automaker, Hyundai, is advancing its dealers funds to cover the federal incentive."
It's not clear how dealerships will respond - they may choose to honor their offers through the weekend in hopes of registering successfully on Monday morning, or they may not. We urge buyers to call dealerships to verify their approach before heading out to shop for the weekend, and to consider carefully before agreeing to any purchase that is contingent on the government accepting the dealer's registration later.
The federal government still appears to be planning a formal launch for the program. The Detroit News reports, "Transportation Secretary Ray LaHood will kick off the program on Monday with an event at the department's headquarters that will include fuel-efficient vehicles from major manufacturers and some members of Congress."
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.
