While Cash-For-Clunkers has been wildly successful at driving traffic to auto-dealer’s showrooms across the country, the increase in ‘business’ has yet to be realized by many, if not most dealers around the country. According to approximately two-thirds of respondents to an Automotive News survey, payment has been received for fewer than 3 percent of total deals
The amount owed to the surveyed dealers soared as high as $5 million for one dealership group, while the median amount owed was $128,000.
About 4% of the dealers who participated were owed over $1 million from the government. Less than half of the dealers also showed confidence that they will ever be repaid, a scenario that if realized, could prove catastrophic to many dealers.
The Department of Transportation announced yesterday that the Cash for Clunkers program will end Monday, August 24th at 8 p.m. EDT.
– By: Stephen Calogera