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Updated: 11:17 p.m. Friday, July 31, 2009 | Posted: 11:16 p.m. Friday, July 31, 2009

'Cash for clunkers' program gets $2B boost

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'Cash for clunkers' program gets $2B boost photo
Larry Taylor, owner of Beau Townsend Ford Nissan in Vandalia, has taken in about 50 cars for the Cash for Clunkers program.

By Thomas Gnau

Staff Writer

The House voted Friday, July 31, to boost the Cash for Clunkers program by $2 billion, one day after the program came close to running out of money.

The Car Allowance Rebate System program allows consumers to trade older, less fuel-efficient vehicles for newer ones. The program offers incentives of up to $4,500 to consumers who exchange older models for newer models, within guidelines.

The program started in late July with $1 billion in government funding and was scheduled to run through Nov. 1 or when the money ran out. Consumer response was so strong the money appeared to be gone by late Thursday and there was confusion Friday over whether the program would continue.

While the Senate won’t address additional funding until next week, the National Auto Dealers Association said it had been assured by the Obama administration that all deals closed Friday would be honored.

Local dealers said Friday they like how the idea pulls consumers to showrooms, but they hope it will become more user-friendly.

Larry Taylor, owner of Beau Townsend Ford Nissan in Vandalia, said the program is a “win-win.”

Dealers are reporting problems, however. Joe Hidy, executive director of the Dayton Area Automobile Dealers Association and co-owner of three local dealerships, expressed frustration with CAR’s government Web site, which he said too often will bounce off users and kick deals back. Hidy said it took him 10 hours Thursday to upload just three deals.

“It couldn’t be any worse than this,” he said.

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.

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