Clunker cash began flowing to dealers in early September.
Auto dealers across the country reported that payments on the
massive program were slow.
McDonald Auto Group in Littleton floated close to $250,000
before reimbursement money started arriving.
Michael McDonald, vice president of McDonald Auto Group,
mentioned the lack of Car Allowance Rebate System payments to Rep.
Mike Coffman, R-Aurora, during an August break visit to one of the
dealerships.
Coffman said he would address the issue as soon as possible.
In August, the engine disabling requirement was changed to allow
dealers to keep the vehicle running until payment was received, and
allowed seven days for the dealership to disable the car by pouring
silica into the engines.
McDonald had disabled all the cars in the program prior to
receiving payment.
“We have received 90 percent of our money,” McDonald said Sept.
25.
He expects the rest to come in before October.
“We are confident we will receive all of the remaining money,”
he added.
Cash for Clunkers poured $3 billion into the automotive buying
market from late July to late August.
Colorado dealers requested $37.1 million in reimbursements.
US. Transportation Secretary Ray LaHood called the program a
success.
“There can be no doubt that this program drummed up more
business, for more people, in more places at a time when our
economy needed help the most,” LaHood said.
Auto sales saw a 10.6 percent increase in August over July,
leading retail sales overall in the nation to a 2.7 percent
increase in August from July.
Dealers nationwide submitted paperwork for 690,144 rebates under
the program.
But now that the program is out of money two months before the
original expiration date of November, what happens to sales of new
vehicles?
“The industry is definitely feeling a hangover,” McDonald said.
“We stole demand from this month and probably some from
October.”
Supplies are low as auto makers struggle to increase
inventories.
“We do have more orders than normal for cars in November and
December,” McDonald said.
The most popular car bought under the program, which held
mileage requirements, was the Toyota Corrolla.
Japanese auto makers netted 41 percent of the sales under the
program. The top four cars under the program are built in the
United States.