Local automobile dealers have seen firsthand the nationwide popularity of the federal “cash for clunkers” car rebate program that nearly wiped out the available funding in one week.
The Associated Press
A woman shops for a car at Springfield Auto Mart in Springfield, Vt., a dealer for Buick, Pontiac and GMC. Above her is a car that was placed into a garbage container as a visual promotion for the government cash-for-clunkers program. The government's popular “cash for clunkers” program is running out of money as car shoppers flock to dealerships to take advantage of the rebates. The House has voted to rush an additional $2 billion into the popular program.
A woman shops for a car at Springfield Auto Mart in Springfield, Vt., a dealer for Buick, Pontiac and GMC. Above her is a car that was placed into a garbage container as a visual promotion for the government cash-for-clunkers program. The government's popular “cash for clunkers” program is running out of money as car shoppers flock to dealerships to take advantage of the rebates. The House has voted to rush an additional $2 billion into the popular program.
Cayuga County dealerships have seen increased foot traffic and car sales since the Car Allowance Rebate System came online last week. The program provides car owners subsidies of up to $4,500 for trading in their old, gas-guzzling clunkers and purchasing more fuel-efficient vehicles.
Fox Chrysler Dodge Jeep store General Manager Greg Spinelli said the dealership on Grant Avenue in Auburn entered into agreements with more than 50 people this week trading in their vehicles from the late 1980s and early 1990s, most of which were trucks and sport utility vehicles, he said.
And at Summit Chevrolet Buick Pontiac GMC in Sennett, nearly two dozen people bid farewell to their gas-guzzlers in favor of four cylinder sedans, such as the Chevy Impala, Chevy Malibu and Pontiac G6, said Lou Mangovski, general manager of the Grant Avenue Road dealership and partner of the Summit Group.
But the longevity of the program was put into question Thursday when U.S. Transportation Department officials alerted lawmakers that the $1 billion allocated for the rebates was all but depleted and initially recommended the program be suspended. However, White House Press Secretary Robert Gibbs said later Thursday that suspension would not take place and officials will be reviewing the program to ensure it remains funded.
This conflicting information coming from the federal government left local dealerships confused and unsure of what to do now.
“There was an overwhelming response to (the program) just like everywhere else,” Spinelli said, “and of course what's going on today will definitely create some negativity towards the program because we can't deliver cars now until we find out for sure whether the government will back the program. There are all kinds of conflicting information right now.”
While both Spinelli and Mangovski believe the program is a success, they fault the long and tedious application process involved. Parties entering into agreements must wait a number of days to receive authorization from the federal government to move forward. Then, dealerships apply the subsidy using money from their own wallets and submit for reimbursement.
Mangovski's dealership has yet to receive authorization for its agreements, but hopes they are finalized in short order.
“We're just as anxious to deliver these vehicles,” he said, “as the customers are to pick them up.”
Staff writer Alyssa Sunkin can be reached at 253-5311 ext. 239 or alyssa.sunkin@lee.net
Fox Chrysler Dodge Jeep store General Manager Greg Spinelli said the dealership on Grant Avenue in Auburn entered into agreements with more than 50 people this week trading in their vehicles from the late 1980s and early 1990s, most of which were trucks and sport utility vehicles, he said.
And at Summit Chevrolet Buick Pontiac GMC in Sennett, nearly two dozen people bid farewell to their gas-guzzlers in favor of four cylinder sedans, such as the Chevy Impala, Chevy Malibu and Pontiac G6, said Lou Mangovski, general manager of the Grant Avenue Road dealership and partner of the Summit Group.
But the longevity of the program was put into question Thursday when U.S. Transportation Department officials alerted lawmakers that the $1 billion allocated for the rebates was all but depleted and initially recommended the program be suspended. However, White House Press Secretary Robert Gibbs said later Thursday that suspension would not take place and officials will be reviewing the program to ensure it remains funded.
This conflicting information coming from the federal government left local dealerships confused and unsure of what to do now.
“There was an overwhelming response to (the program) just like everywhere else,” Spinelli said, “and of course what's going on today will definitely create some negativity towards the program because we can't deliver cars now until we find out for sure whether the government will back the program. There are all kinds of conflicting information right now.”
While both Spinelli and Mangovski believe the program is a success, they fault the long and tedious application process involved. Parties entering into agreements must wait a number of days to receive authorization from the federal government to move forward. Then, dealerships apply the subsidy using money from their own wallets and submit for reimbursement.
Mangovski's dealership has yet to receive authorization for its agreements, but hopes they are finalized in short order.
“We're just as anxious to deliver these vehicles,” he said, “as the customers are to pick them up.”
Staff writer Alyssa Sunkin can be reached at 253-5311 ext. 239 or alyssa.sunkin@lee.net
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