Local automobile dealers can breathe at least a temporary sigh of relief after an incentive program that nearly burned through all of its funding in the first week is on track to receive more money. The federal Cash for Clunkers program is attracting more customers at a time when dealers could use all the help they can get. "Business has been red hot," said Byron Hansen, o
wner of Hansen Motor Co., a General Motors dealer in Brigham City. "There's a lot of paperwork involved, but it's been a major stimulator for sales." Officially known as CARS, the Car Allowance Rebate System, the $1 billion government program aimed at getting fuel-guzzling cars and trucks off the road took effect July 24. It provides consumers a rebate of $3,500 or $4,500 on the purchase of a more fuel-efficient car or truck if they trade in a vehicle with a combined city/highway mileage of 18 miles per gallon or less. The program was initially launched with $1 billion in federal funding but the U.S. House voted Friday to allocate another $2 billion to bolster the program after realizing how popular it is. By some estimates, the first $1 billion was called for within five days. There was some uncertainty about the status of the program late Thursday, when Congress considered suspending the program to make sure it had enough funding to meet all the requests. That caused a sense of urgency among customers who were on the fence about buying a new car, said Skyler Cutrubus, general manager of Freeway Cadillac Mazda in Riverdale. While the program has been good for sales, Cutrubus said questions about adequate funding have caused uncertainty among dealers.
wner of Hansen Motor Co., a General Motors dealer in Brigham City. "There's a lot of paperwork involved, but it's been a major stimulator for sales." Officially known as CARS, the Car Allowance Rebate System, the $1 billion government program aimed at getting fuel-guzzling cars and trucks off the road took effect July 24. It provides consumers a rebate of $3,500 or $4,500 on the purchase of a more fuel-efficient car or truck if they trade in a vehicle with a combined city/highway mileage of 18 miles per gallon or less. The program was initially launched with $1 billion in federal funding but the U.S. House voted Friday to allocate another $2 billion to bolster the program after realizing how popular it is. By some estimates, the first $1 billion was called for within five days. There was some uncertainty about the status of the program late Thursday, when Congress considered suspending the program to make sure it had enough funding to meet all the requests. That caused a sense of urgency among customers who were on the fence about buying a new car, said Skyler Cutrubus, general manager of Freeway Cadillac Mazda in Riverdale. While the program has been good for sales, Cutrubus said questions about adequate funding have caused uncertainty among dealers.For further details visit as : http://www.standard.net/live/news/179710
