The more car dealers we speak to, the more concerned we get.

Many trusted automotive veterans are predicting that our elected officials are underestimating the number of consumers who will be participating in the Car Allowance Rebate System (CARS) created by the Cash for Clunkers bill. 

That begs the question: How do we get additional Cash for Clunkers funding?

In fact some car dealers are expecting that the CARS program will exhaust the $1 billion dollars in funding by Labor Day Weekend.

That would be two months earlier that the official ending date of November 1, 2009.  We are starting to see the logic behind their fears and the potential backlash if additional funding is not allocated for the program to continue longer.

The real issue at hand is can Congress pass additional funding measures in the month late August or early September?

NHTSA Program Updates

On July 7, 2009 the NHTSA and NADA held a joint CARS webinar for car dealers to discuss the law and the rules that are being formulated based on the language in the law.

The NHTSA indicated that dealers would receive a letter in the mail with a unique dealer ID number that would facilitate their online registration.  That letter would be sent out in Mid July according to the webinar materials.

Dealers were also told that the official program website at http://cars.gov will eventually have a real-time ticker of funds that are remaining in  the program. We predict that the news media will be watching the “CARS Countdown Clock” ; a predicted pastime of automotive media outlets. This real-time feed is design to help dealers know when the funds are exhausted.

We do not envy the car dealers who will be taking in trades the day that the funds dry up.

Congressional Support in Question

This is why we have a serious concerns about the Cash for Clunker additional funding prospects.  The Cash for Clunkers bill was barely approved.  The second time around Republican lawmakers may want to make a point about how the first round of funding was approved. 

That’s where the sponsors of the bill have some work to do this summer.  They will have to use August as a platform to spin the CARS program in a very positive light.  The Cash for Clunkers sponsors do not want to see their hard work shrivel up in 60 days.

Consumers Speak Up

From feedback on our “SPEAK UP” forum, consumers want additional funding contingent on a change in current rules.  The most popular suggested  amendment would be to ignore the MPG ratings on http://fueleconomy.gov for cars that are rated over 18 mpg as long as the increase in mpg on a new car purchase is 10 mpg higher. 

A car that is rated at 20 mpg on the Fed website could qualify for a $4,500 cash credit as long as the new car they purchase was rated at 30 mph; and increase in 10 mpg.  This proposal seems ameniable with most Americans who want to focus on a new fuel efficient car.

Soon, we will have a special forum for consumers locked out of the Cash for Clunkers program. 

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