Cash for Clunkers to end on Monday Aug 24.
source: http://www.msnbc.msn.com/id/32490342/ns/business-autos/
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The Obama administration plans to end the popular $3 billion Cash for Clunkers program on Monday at 8 p.m EDT, The Associated Press has learned.
Two congressional officials familiar with the plan say the Transportation Department will wind down the program that offers car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models. The officials spoke on condition of anonymity because they were not authorized to speak publicly about the plan.
The Obama administration was set to announce details on Thursday.
Transportation Secretary Ray LaHood reiterated his pledge that dealers would be reimbursed for the incentives.
“We don’t want to run out of money. And I want to be able to substantiate what I’m saying here. If you do a deal with us, you submit the paperwork, you will be paid,” LaHood said.
The program offers car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models. Department officials met with car dealer trade groups on Wednesday to discuss how the program will end and respond to complaints over a backlog of rebate payments to dealers.
Through early Wednesday, auto dealers have made deals worth $1.81 billion and are on pace to exhaust the program’s $3 billion in funds in early September. The incentives have generated more than 435,000 vehicle sales but dealers want a clear plan on when the rebates will no longer be available so they don’t end up on the hook for any of the incentives.
Two congressional officials familiar with the plan say the Transportation Department will wind down the program that offers car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models. The officials spoke on condition of anonymity because they were not authorized to speak publicly about the plan.
The Obama administration was set to announce details on Thursday.
Transportation Secretary Ray LaHood reiterated his pledge that dealers would be reimbursed for the incentives.
“We don’t want to run out of money. And I want to be able to substantiate what I’m saying here. If you do a deal with us, you submit the paperwork, you will be paid,” LaHood said.
The program offers car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models. Department officials met with car dealer trade groups on Wednesday to discuss how the program will end and respond to complaints over a backlog of rebate payments to dealers.
Through early Wednesday, auto dealers have made deals worth $1.81 billion and are on pace to exhaust the program’s $3 billion in funds in early September. The incentives have generated more than 435,000 vehicle sales but dealers want a clear plan on when the rebates will no longer be available so they don’t end up on the hook for any of the incentives.
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samthesixth
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Good riddance. See it is possible for the government to end a program it starts.
- 2 years ago
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samthesixth
