WASHINGTON (AP) - Auto dealers are bracing for a possible rush of last-minute shoppers before the Cash for Clunkers program ends Monday, but some buyers may find they won't be able to cash in on big government rebates.
Dealers are increasing staff for the last weekend of the
$3 billion program. But many say they will stop Cash for Clunkers sales after today to make sure they get reimbursed by the government for the rebates of up to $4,500. Some reported traffic at showrooms began to swell Friday after the government announced the end date.
The weekend will be the last big push for the program that has helped revive sagging auto sales by allowing drivers to trade in older, less fuel efficient vehicles for new cars and trucks. Originally expected to last for several months, the program is on track to exhaust its funds in just over four weeks. It's been a big hit with buyers, but has led to hassles for dealers who have been paid for only a fraction of the rebates they've extended to customers.
"It will be somewhat good to get it done," said Skip Davenport, whose South Carolina Ford dealership hasn't been reimbursed for any of the $150,000 worth of rebates. "We are all just stretched."
The Department of Transportation said that it will end Cash for Clunkers at
5 p.m. Monday to avoid going over the billions set aside for the program.
Dealers say they may be in the difficult position of having to turn away new sales despite what is expected to be heavy weekend.
"I think we are going to have a lot of interest in the showroom, but we are going to be in the uncomfortable position of giving some people disappointing news," said David McGreevy, sales manager for AutoServ, a New Hampshire dealer chain.
All paperwork on pending sales must be submitted to the government by the Monday deadline.
The Obama administration has declared Cash for Clunkers a success, saying it has reinvigorated the nation's listless auto industry and taken polluting vehicles off the road.