Reported by John Matarese
Updated 8/20/09
UPDATE:
THE CLUNKER PROGRAM HAS NOW ENDED. THIS STORY REMAINS ONLY FOR ARCHIVE PURPOSES.
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This is your last weekend to trade in a clunker for $4,500 toward a new car!
The Department of Transportation has decided to end the Cash for Clunkers Program on Monday August 24, 2009 at 8PM.
The reason: the National Association of Auto Dealers believes the program has already burned though all its funding, including the additional 2 Billion Dollars added a few weeks ago to the original 1 Billion.
Many dealers have 100 or more Clunkers sitting on their lots, waiting for reimbursement. But the program has been so slow getting money to dealers, many worry the money will be gone by the time their trade-ins come up in the system for review. As a result,
some dealers are already refusing any more clunker trades.We spotted row after row of clunkers at Cincinnati's Kings Auto Mall on Thursday, waiting to be junked. Local dealers tell us very few reimbursement vouchers have come in so far.
Beware the Contract "Addendum"
Some dealers have been holding off on sales...waiting on reimbursement before letting a new car roll out. They say they can't afford to swallow a $4,500 loss if something goes wrong. Others have been letting new cars go, crossing their fingers that they will be reimbursed.
But beware: Some others are now hedging their bets, which leads to the following caution:
We are hearing of a growing number of dealers requiring customers to sign an "addendum" to their contract.
It states that if the Government runs out of money before the dealer collects $4,500, the customer will have to make up the difference and repay the dealer $4,500. Think hard before signing this document: there is a good chance you will have to write a check for $4,500 a month from now.
Petition Drive Launched
With so many cars disqualified due to the mileage rules, some drivers are now joining a petition drive to expand the program. (Click the link above for more about the petition drive and to sign up.)
A 12 year boy has posted a song to Youtube called the Cash for Clunkers Blues, about all the flaws in the program. He may have a future as a rock star...or car dealer. (Click link above for his song)
NEXT: Why your Clunker Probably Won't Qualify ....
