Confusion reined Thursday night over the fate of “cash for clunkers” program, the surprisingly popular rebate program that has provided a shot in the arm to the struggling auto industry.
In an unexpected move, the government halted the program, saying it proved so popular with the public that it ran out of money in just four days of official operation. The White House later told us and others on background that the program had not been suspended, but hastened to add that all deals in the hopper before midnight Thursday would be honored — making it sound as if it had been suspended.
Either way, the Michigan Congressional delegation was reportedly on a sweep for more money to keep the program alive. One problem: the House is set to adjourn Friday for a month, so it’s not clear when Congress might reinstate the program.
Car dealers whom we had been interviewing over the last few days told us that a lot of consumers who came into their showrooms did not fully understand the program — though apparently enough understood it to take advantage of it quickly.
They also said they were worried about whether the government would reimburse them for the discounts they gave under the program. The plan gave discounts to drivers trading in their old vehicles of between $3,500 and $4,500 toward the purchase of new cars and trucks.
“I’m waiting for the government to reimburse me for over $80,000,” Barry Magnus, general manager of DCH Paramus Honda, in Paramus, N.J., told us. He has completed deals on about two dozen cars, advancing his customers the rebates of between $3,500 and $4,500 each while he waits for the government to repay him.
By the way it was budgeted to last till Labor day. As of now they are scrambeling to save it.
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