The Obama administration officially announced this evening that the Cash for Clunkers program will end on Monday, August 24th. The $3 billion is pretty much gone. Hopefully, dealers won’t get shafted if there turns out to be a deficit, we don’t need something like this to hurt any businesses. If you want to go out and get a new car and trade in your old junker, now is time. Stop waiting or it will be too late. The early bird gets the worm and all that stuff.
The program has been touted as a success, despite a few pitfalls. There have been lengthy delays for the dealers getting paid for the vouchers. This puts the dealer in a serious cash crunch. There are some dealers that have not been able to make payroll and pay their taxes because the money just isn’t there yet.
To combat that problem, all of the major manufacturers (Ford, GM, Chrysler, Honda and Toyota) are offering short-term loans to their dealers that have been hit hard with the delays. Nothing like bureaucracy creating more problems. This all comes on the heels of GM and other manufacturers announcing they were ramping up production to keep up with the new demand for new cars. Hold the presses, you might not want to do that just yet, General.
Unfortunately, the biggest problem with this entire program is that it is costing the American taxpayers. They can say all they want about the coming from other places, but in reality, every cent the government has comes from us in one way or another. I hope we get through this recession and administration soon so we can go about fixing the real problems.