Consumer interest in cash for clunkers is dying, and Congress wants to make the program even more consumer-friendly.
With auto dealer inventories tight, Congress wants to allow buyers to receive vouchers to lock in their trade ins. If you go to the dealer, and they don’t have the bright red Prius you want, you’ll get a $4,500 voucher to hold on to while the dealer orders one from Toyota.
As we’ve written, dealers are short on cars. And automakers aren’t rushing to fill the gap, because they know this is a short term jolt:
So far, most major U.S. auto makers have proposed relatively modest production increases following the jump in demand. Auto makers are wary of ordering significant additional production because after the latest $2 billion in federal clunkers money is gone, the market could cool down.
According to Edmunds.com, the cash for clunkers craze is dying off.
Edmunds says we hit peak clunkers on July 29, and it’s been downhill since. By August 20th, we could be right back to where we were pre-cash for clunkers. With the new spigot of cash opened, “the sense of urgency” is gone from consumers, and says Edmunds, “Quite possibly, some of the extra $2 billion will go untapped.”
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