Skip navigation


Current DateTime: 12:09:27 22 Sep 2009
LinksList Documentid: 24355697
  • World's Best Banks 2009

      The global banking industry is a diverse landscape of financial services, but with so many players in the marketplace, which are the best in each segment?

  • Highlights: Frederick's 2009 Collection

      Consumers are still spending with restraint, but Frederick's of Hollywood actually saw a pick up in sales of their fall collection in August.

  • World's Best Places to Stay

      Whether it's a hotel in the center of Paris or a luxury camp ground on the Serengeti, there are numerous places to stay in style, but which ones are truly the best?


Current DateTime: 12:09:28 22 Sep 2009
LinksList Documentid: 24890560
Car Dealerships Are Swamped As 'Cash for Clunkers' Ends
Published: Monday, 24 Aug 2009 | 4:37 PM ET
Text Size
By: Reuters

Americans swamped auto dealerships Monday during the final hours of the U.S. government's popular "cash-for-clunkers" program, offering rebates of up to $4,500 to trade in older gas guzzlers.

Dealers from California to Texas saw lots empty of cars, pickups and SUVs over the weekend, as once-reluctant customers were lured back into the market by the $3-billion rebate program that ends at 8 p.m. EDT Monday.

"It's been crazy. We've had lines" of customers, said Scott Gruwell, the sales director at Courtesy Chevrolet in central Phoenix, which has sold 58 new vehicles since Friday.

"We've had the best weekend in literally a year-and-a-half to two years," he added.

The rebate program, which started last month, sought to spur sales in the struggling auto industry while helping the environment. It offered $3,500 to $4,500 to people who trade in a car made since 1984 with lower fuel mileage for a new, more fuel efficient one.

"A lot of these people were trading in cars in the 15-year-old range, and I don't think they had any intention of buying a car -- at least not a new car, maybe a used car," said Mike Szatmary at Brademann Toyota in Park Ridge, Illinois.

"But I think we took a lot of people on the sidelines and put them back in the game," he added.

As of Monday, the U.S. Department of Transportation reported more than 625,000 dealer transactions worth $2.58 billion in rebates, with several hours to go until the program closed.

"It's just been really positive," said April Ancira, the Vice President of Texas-based Ancira Motors. "We were in a situation where we had too much inventory. Now it's the complete opposite."

Lawmakers and the Obama administration had to scramble earlier this month to add $2 billion in funding when the program's initial $1 billion was quickly exhausted.

White House spokesman Robert Gibbs said last week there were were no plans to seek more funding or an extension for the program, which offered a trade-in credit on qualifying vehicles with fuel economy of 18 miles per gallon or less.

"(It) was designed to be temporary and has been enormously successful, so much so that we're winding it down," Gibbs told reporters.

To keep up with huge demand ahead of the program's closure, Gibbs said the government had tripled the number of workers processing applications.

Nevertheless, it faced some complaints from dealers over the weekend and on Monday who reported trouble finalizing paperwork and delays in receiving government reimbursements.

David Handley, sales manager of Sierra Autocars in the Los Angeles suburb of Monrovia, California, said his Subaru/Mazda dealership did its last "clunker" trade-in on Sunday evening, 24 hours before the program expired, to ensure plenty of time to complete the paperwork.

Woman looks at new Toyota Camry on dealer lot
AP
Woman looks at new Toyota Camry on dealer lot

"I probably have some people right now I could sell cars to, but we can't take the chance on not being able to get them into the government system (for reimbursement)," he said.

Handley said the owner brought in about 10 extra people over the weekend just to handle the backlog of documentation, which he said requires about 90 minutes of paperwork per deal.

Other auto dealers said they were worried about making a potentially costly mistake in the rush to complete the paperwork ahead of Monday's deadline.

"Some of the bigger dealers that have a couple of hundred reimbursement requests in the works, it adds up to a whole lot of cash," said Alan Black, general sales manger at Chuck Fairbanks Chevrolet in the Dallas area.

"And, if you make a mistake and they don't pay, you've just lost $4,500 on a $200 car."

Copyright 2009 Reuters. Click for restrictions.
Add This share icon
Text Size


Current DateTime: 05:20:00 21 Sep 2009
LinksList Documentid: 29778428

Current DateTime: 06:54:08 21 Sep 2009
LinksList Documentid: 29779196

Current DateTime: 04:19:46 21 Sep 2009
LinksList Documentid: 29779199

Current DateTime: 01:02:41 21 Sep 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters