Cash for Clunkers Program Will End Monday

August 21, 2009

(ChattahBox) — The Car Allowance Rebate System (CARS), but coined ‘Cash for Clunkers’ rebate program that awards car buyers up to $4,500 for trading in older gas-guzzlers for more fuel-efficient rides will stop accepting applications on Aug. 24. Dealers must submit any pending Clunker deals, including any necessary paperwork, by 8 p.m. ET Monday. As of Thursday, the program had recorded more than 457,000 dealer transactions worth $1.9 billion in rebates, filling empty dealership showrooms with buyers.

Dealers get reimbursed for the credits by the National Highway Traffic Safety Administration, which is operating the program. The amount of the credit depends on the level of gas-mileage improvement. A gain of 4 to 9 miles per gallon earns a $3,500 credit, and one of 10 miles per gallon or more earns a $4,500 credit.  Dealers have complained of difficulty running their businesses while awaiting program payments, because the Transportation Department has only processed 167,000, or 37 percent, of the 457,476 dealer requests submitted. General Motors Co. and Chrysler Group LLC said they plan to provide cash advances to dealers awaiting government rebates.


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