CBS Channel 2 News in New York is reporting that Senator Harry Reid is not only saying that there are enough votes in the Senate to pass the $2 billion funding extension for the Cash for Clunkers bill but that the vote will take place today.
Thursday August 6, 2009 looks like the day which will give car dealers some financial stress relief. As we listened to the CBS Channel 2 news on Wednesday night at 11:00 pm, the newscaster added a very interesting statement.
He said that the additional $2 billion in funding would keep the program running through Labor Day.
We agree with CBS 2 News in New York that the $2 billion is only a stop gap measure to fund the program through August. When you do the Cash for Clunkers math and factor in the pace at which consumers are buying cars, the Labor Day weekend may be the last hurrah for the CARS program.
Since the vote and approval seems certain to take place tomorrow, we turn our attention to September when funding once again will be exhausted. We also encourage consumers to heed our warning; get out and shop for your new car or truck in August.
Do not count on the Cash for Clunkers bill having money in September.
If you would like to have a local car dealer contact you about your qualifying clunker and new car purchase, complete the form on the left.
We urge the NHTSA to consider setting an “pause date” for the CARS program since we don’t know if the NHTSA can clear the backlog in 1-2 weeks. By setting a “pause date” dealers and consumers will have a date certain to make sure they complete their transactions on time. After the pause date, the NHTSA can process all sales, send out reimbursements and then come back with a report of remaining monies and present the CARS trade-in data to Congress.
Since the CARS system has inherent delays for approving sales, the NHTSA will never be able to know when funds actually run out and stop dealers from taking new sales. Setting a “pause date” makes more sense, even if they have to be a little conservative in estimating the date.
Will the House ask to draw from the “stimulus well” after the August recess to continue the CARS program? Some consumers feel that of all the stimulus programs approved, that this may be one of the few that is actually working and one that is measurable by the average consumer.
Tell us what you think below.