Buyers Flock to Cash for Clunkers Program

The Cash for Clunkers program was really sold as an environmental package, to get clunkers off the road and replace them with greener vehicles, but some are hoping it will help car dealers as well. The program is restricted to new car purchases and leases, however, it is not restricted to U.S. automakers.

The Cash for Clunkers program will expire on Nov. 1st, or when the $1 billion in subsidies are exhausted. George Fowler, a Pontiac-Buick-GMC dealer in Dearborn, Mich., said he has made seven sales so far through the program.

At the same time, however, he noted much confusion about the qualifications; more than 30 people came in hoping to buy, but most didn't meet the qualifications. He also is one of the ones who feel these people simply accelerated their buying plan, telling the Wall Street Journal:

"These are people who would have been in the market anyway, and they have a trade that was worth $1,500 and now is worth $4,500."

There is significant interest in the Cash for Clunkers program, however. For example, a government hotline has handled more than 45,000 calls from people seeking information, and the official website has registered 1.5 million hits since Friday.

For full details, go the the CARS.gov website linked above.