Clunkers program to let buyers reserve vehicles
Car shoppers wanting to use the cash-for-clunkers program who can't find the vehicles they want due to shortages will be able to reserve models under a change in the program announced by the Obama administration today.
The move comes after Michigan lawmakers raised concerns that automakers were running short of popular models that would be hard to replenish before the program ends. New data suggests half of the $2.95 billion set aside for the program will be claimed by Friday, and that all of the money may be exhausted by early September.
Several automakers have reported shortages of popular models due to demand from the program -- a key driver behind Ford Motor Co.'s announcement today that it would ramp up third-quarter production.
Under the original rules of the program, owners of clunkers who qualified for $3,500 or $4,500 vouchers had to take delivery of a new vehicle from dealers' stock, and only after the sale was complete could dealers file for reimbursements.
In a statement, the U.S. Department of Transportation said today that dealers can reserve a vehicle from an automaker by using a vehicle identification number, and submit that number with the rest of the paperwork to the government.
“The Department of Transportation is trying to make sure that everyone who wants to can participate in this wildly successful program,” U.S. Transportation Secretary Ray LaHood said in a statement. “Allowing consumers to order vehicles and qualify for the rebate will expand buyers’ choices and keep production lines running.”
U.S. Reps. Candice Miller, R-Harrison Township, and Fred Upton, R-St. Joseph, had written to LaHood Monday asking for such a program, citing dealers' concerns that they were running out of some newer models. Miller said the administration "did exactly what we asked them to do."
"Really, who cares if it's on the lot or not, as long as it's meeting the standards of the program," she said.
General Motors Co. and Ford Motor Co. praised the decision, saying it would help buyers find the vehicle they wanted.
As of today, 338,659 deals have been entered into the system, with $1.418 billion in vouchers claimed. At the rate of the past few days and based on the average claim, the program would run out of money in about 15 days, although some analysts have suggested demand could slow before then.
Clunkers program to let buyers reserve vehicles | Detroit Free Press | Freep.com
The move comes after Michigan lawmakers raised concerns that automakers were running short of popular models that would be hard to replenish before the program ends. New data suggests half of the $2.95 billion set aside for the program will be claimed by Friday, and that all of the money may be exhausted by early September.
Several automakers have reported shortages of popular models due to demand from the program -- a key driver behind Ford Motor Co.'s announcement today that it would ramp up third-quarter production.
Under the original rules of the program, owners of clunkers who qualified for $3,500 or $4,500 vouchers had to take delivery of a new vehicle from dealers' stock, and only after the sale was complete could dealers file for reimbursements.
In a statement, the U.S. Department of Transportation said today that dealers can reserve a vehicle from an automaker by using a vehicle identification number, and submit that number with the rest of the paperwork to the government.
“The Department of Transportation is trying to make sure that everyone who wants to can participate in this wildly successful program,” U.S. Transportation Secretary Ray LaHood said in a statement. “Allowing consumers to order vehicles and qualify for the rebate will expand buyers’ choices and keep production lines running.”
U.S. Reps. Candice Miller, R-Harrison Township, and Fred Upton, R-St. Joseph, had written to LaHood Monday asking for such a program, citing dealers' concerns that they were running out of some newer models. Miller said the administration "did exactly what we asked them to do."
"Really, who cares if it's on the lot or not, as long as it's meeting the standards of the program," she said.
General Motors Co. and Ford Motor Co. praised the decision, saying it would help buyers find the vehicle they wanted.
As of today, 338,659 deals have been entered into the system, with $1.418 billion in vouchers claimed. At the rate of the past few days and based on the average claim, the program would run out of money in about 15 days, although some analysts have suggested demand could slow before then.
Clunkers program to let buyers reserve vehicles | Detroit Free Press | Freep.com
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