Friday, July 31, 2009

CARS aka Cash For Clunkers to be expanded....

So, it looks like Washington is going to expand the CARS aka Cash For Clunkers program.
The initial response was overwhelming and it looks like the first Billion was spent almost before the program got started. Deals started on July 1st, even though the program wasn't finalized until July 24. So, $2 billion has been approved by the House and is expected to be approved from Congress allowing the program to go on uninterrupted.
This program gets wild responses on both ends of the spectrum. Dealers are loving the traffic through the showrooms, but concerned about the disposal of the clunkers. Consumers ( myself included ) are concerned about the complicated process and potential for abuse, while hopeful and showing a real interest. Pundits, like Mark Tapscott (who I respect a great deal ) are concerned that the program, like so many Federal "entitlements" will take on a life of it's own and become permanent, something that I personally believe is very unlikely.
There's no doubt that the program seems to be a huge boon to sales, with over 23,000 dealers taking part. It's being praised as the most actual stimulus out of all the Fed's programs. Mostly because it's the only program that the average citizen can realize a genuine personal benefit.
But as with any incentive program, many are concerned what will happen to sales when the money again runs out.
Obviously my opinion is biased, because I've been trying to cash in on this myself. But after seeing how well similar programs worked in Europe I'm still a supporter.

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