Cash for Clunkers Buying New Guzzlers

(NEWSER) - Just as the "cash for clunkers" program sparked a boom in auto sales, its cancellation will likely depress the industry, CNNMoney reports. As of today, the last day of the government-funded incentive, rebate applications for 625,000 trade-ins totaling $2.58 billion had been submitted. “We're definitely going to have a hangover,” a dealer says. “I think you're going to be able to shoot a cannon through here and not hurt anybody.” More»

(NEWSER) - Cash for Clunkers revved into overdrive during its final weekend, the New York Times reports. After Thursday’s announcement that the Car Allowance Rebate System would end tomorrow at 8pm, consumers across the country raced to dealerships, resulting in long lines, epic haggling sessions, and hours of overtime work. “Everybody who was thinking about it is rushing through the door,” a salesman says. “The only problem is we’re running out of cars.” More»

(NEWSER) - General Motors will start making temporary loans to dealers who have yet to be reimbursed by the federal government under the Cash for Clunkers plan, the Wall Street Journal reports. Dealers, some now irate, essentially did the same thing for customers participating in the trade-in plan—covering the government rebate out of pocket. But the federal money has been slow in coming, putting dealers at risk of a loss. More»

Other groups also unhappy with government rebates

(NEWSER) - The Cash for Clunkers program has proven to be a shot in the arm for the new-car market, but not everyone's a fan. Used-car dealers say their business is suffering, the Sacramento Bee reports. "The used side sort of slipped" since the program started, said one Honda dealership manager. Three out of every five trashed clunkers normally would have ended up on a used-car lot, auto analysts estimate. More»

Reid engineers deal for vote tomorrow, beating recess deadline

(NEWSER) - The Senate has reached a deal to extend the "cash for clunkers" program through Labor Day, the Detroit News reports. Majority leader Harry Reid capped days of arm-twisting with an announcement tonight that the chamber will vote tomorrow on a measure adding $2 billion to the unexpectedly popular program. The agreement with Republican opponents of the legislation "accomplishes what we need to accomplish," Reid said. More»