Get ‘Em While They Last: Cash for Clunkers Program to End
Nicolas Loris /
From Bloomberg: “The U.S. “cash for clunkers” vehicle trade-in program, credited with reviving auto sales and criticized by dealers for slow reimbursements, will close on Aug. 24, Transportation Secretary Ray LaHood said.”
The government extended the $1 billion program into a $3 billion program and although the program is now set to end Monday, the chairman of the National Automobile Dealers Association has reservations the $3 billion will even last through the weekend.
It remains to be seen what will happen to auto sales post cash for clunkers. Union leaders are hopeful while others are less optimistic, warning sales could crash harder than a kid full of soda and skittles. Much could depend on the overall state of the economy but sales and discounts change expectations about prices. Just as people do not rush to the mall after a sale concludes, we can’t imagine people rushing to the dealerships after they just missed out on a $4,500 coupon.