People have come out in droves to trade in their old, gas-guzzling vehicles for brand new, more fuel-efficient models through the "cash for clunkers" government rebate program. Local dealerships have reported sales increases of 30 percent or more in the weeks since it kicked off the last week of July. However, the government has been slow to fill its obligation to the dealers in the form of $3,500 to $4,500 trade-in rebates. "Cash for clunkers," otherwise known as the Car Allowance Rebate
System, was signed into law by President Obama in June. It allows people to trade a less fuel-efficient car for one that get better gas mileage with the help of government-funded vouchers worth $3,500 to $4,500. The amount depends on type of vehicle purchased and difference in fuel economy. The Louisiana Auto Dealers Association conducted a survey last week of about 55 dealers statewide. Of the 972 "clunkers" that have been submitted to the government with all the proper paperwork, 127 have been accepted and approved for payment. Of those, only seven have actually been paid. Red River Chevrolet in Bossier City had one of the seven vehicles. "We're waiting for the government to reimburse us," said George Fritze, the general manager and co-owner of Red River Chevrolet. "There is a good deal of concern that we may not get paid." Red River Chevrolet has sold 35 vehicles through the program. Fritze estimates that his dealership is owed about $147,000 in rebates. He said there are a lot of kinks that still need to be worked out of the program before they deem it a complete success. But one thing is for certain about cash for clunkers — it has definitely stimulated car sales.
System, was signed into law by President Obama in June. It allows people to trade a less fuel-efficient car for one that get better gas mileage with the help of government-funded vouchers worth $3,500 to $4,500. The amount depends on type of vehicle purchased and difference in fuel economy. The Louisiana Auto Dealers Association conducted a survey last week of about 55 dealers statewide. Of the 972 "clunkers" that have been submitted to the government with all the proper paperwork, 127 have been accepted and approved for payment. Of those, only seven have actually been paid. Red River Chevrolet in Bossier City had one of the seven vehicles. "We're waiting for the government to reimburse us," said George Fritze, the general manager and co-owner of Red River Chevrolet. "There is a good deal of concern that we may not get paid." Red River Chevrolet has sold 35 vehicles through the program. Fritze estimates that his dealership is owed about $147,000 in rebates. He said there are a lot of kinks that still need to be worked out of the program before they deem it a complete success. But one thing is for certain about cash for clunkers — it has definitely stimulated car sales.For further details visit as : http://www.shreveporttimes.com/article/20090817/NEWS01/908170305/1060
