According to National Automobile Dealers Association spokesman Bailey Wood, the Cash for Clunkers program may run out of its $1 billion funding ‘well before’ its November 1 expiration day. He said that dealers have already applied for 10 percent of the funds set aside for the program, reports Automotive News.
Bailey said that the programs “has been a success” in terms of boosting U.S. auto sales. He said that the NADA is now working with the National Highway Traffic Safety Administration “to emphasize the importance that every dealer be reimbursed by NHTSA for a valid deal.”
The NHTSA said today that dealers have submitted 22,782 deals worth $95.9 million in reimbursements as of 4 p.m. yesterday. That’s an average of $4,209.26 per deal, indicating that a majority of sales include $4,500 vouchers.
Of the $1 billion as much as $50 million of that budget can go toward NHTSA’s administration costs.
– By: Omar Rana