No Cash for ClunkersThursday, July 30, 2009
Welcome to Federal Government Micromanagement of the Economy 101. NoThe government’s joke-of-a-program, the “Cash for Clunkers” scam, is over already. Why? The tank ran dry.
The so-called “Cash for Clunkers” program will be suspended because the funds set aside for the effort are on the verge of running out, Capitol Hill sources told CNBC.
Transportation Secretary Ray LaHood has notified key senators that the program will “run out of money at midnight tonight,” sources said.
Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns about large backlogs in the processing of the deals in the government system, prompting the suspension.
…A survey of 2,000 dealers by the National Automobile Dealers Association found about 25,000 deals had not yet approved by NHTSA, or nearly 13 trades per store. It raised concerns that with about 23,000 dealers taking part in the program, auto dealers may already have surpassed the 250,000 vehicle sales funded by the $1 billion program.
A government program that hands out discounts to people who conform to politically-approved government mandates (MPG stipulations) has resulted in a shortage of funds? Say it isn’t so! Thanks to Charles Everett for the link.