Cash for Clunkers Wind-Down Planned "Within Days"

Edward Niedermeyer
by Edward Niedermeyer

With $1.7 billion already claimed by consumers, the NHTSA is preparing a wind-down of the CARS rebate program, reports Automotive News [sub]. Based on dealer sales and “other surveys, the NHTSA “can make a pretty good judgment call” about when to end the program, reckons Transportation Secretary Ray LaHood. “I know dealers are frustrated, but they’re going to get paid.” LaHood said the program’s high rejection rate is due to the huge demand and dealers’ “failure to fill out claims correctly.” Dealers, meanwhile, are far more likely to blame the rampant delays and rejections on the NHTSA’s “failure to have their shit together.” Either way, it sounds like just about everyone is ready to be done with Cash for Clunkers.

Edward Niedermeyer
Edward Niedermeyer

More by Edward Niedermeyer

Join the conversation
4 of 21 comments
  • Cars4Charities Cars4Charities on Aug 20, 2009

    This program can't end soon enough for car donation charities. When it was first proposed, we asked that the c4c cars be given to charity and the charity allowed to determine its fate. Cars in poor shape would be scraped. Cars in good shape would be sold or given to the poor. But no, the government decided it was a much better idea to destroy all of them!

  • Ohsnapback Ohsnapback on Aug 20, 2009

    I keep hearing how frugal, responsible, and having impeccably 'credited' "the majority" of CFC marks....errrr, I mean customers, are. I'll believe that when I don't see the CFC purchases showing up at used car lots near me soon.

  • Bunter1 Bunter1 on Aug 20, 2009

    I suspect that the buyers are covering a broad spectrum. Yes, some were intenders that were pulled forward. Yes, some have no buisness with a loan. However it still increases (incrementaly) the debt burden of a population with too much debt already. C4C still looks like short term panic driven thinking by the Gov to me. Shocker. Bunter

  • Dwford Dwford on Aug 20, 2009

    Between the manufacturer rebates and C4C money, these customers are not driving off the lot only to be immediately upside down like most car buyers. If any of them get into financial trouble, they should be able to sell their way out of it clean.