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Hugely popular CARS program winds down Monday (Aug 24)

UPDATED MEDIA RELEASE (8/24/09)

Deadline for Dealers to File CARS Applications Extended Until Noon EDT, Tuesday.

Due to an overwhelming demand on the CARS computer system, the deadline for automobile dealers to file applications for rebates has been extended until noon EDT tomorrow. The deadline for actually completing sales remains 8:00 p.m. EDT today.

Despite a large increase in the system’s capacity, the website was down temporarily this afternoon. Because of the temporary shutdown, dealers have been given extra time to file the necessary paperwork.

MEDIA RELEASE (8/20/09)

U.S. Transportation Secretary Ray LaHood has announced that after a wildly successful run, the cash for clunkers program will come to a close at 2 p.m. Hawaii time Monday, Aug. 24.

“This program has been a lifeline to the automobile industry, jump starting a major sector of the economy and putting people back to work,” Secretary LaHood said. “At the same time, we’ve been able to take old, polluting cars off the road and help consumers purchase fuel efficient vehicles.”

As of today, the CARS program has recorded more than 457,000 dealer transactions worth $1.9 billion in rebates.

The Car Allowance Rebate System, as it is officially known, has sparked intense interest, filling auto showrooms with buyers and revitalizing manufacturing plants. As a result of the program, automotive inventory has been depleted and both General Motors and Ford are ramping up production, adding shifts and rehiring laid off workers.

“It’s been a thrill to be part of the best economic news story in America,” LaHood said. “Now we are working toward an orderly wind down of this very popular program.”

The program has provided rebates of up to $4,500 when people turned in their clunkers for fuel-efficient vehicles. Most consumers have turned in trucks and SUV’s in exchange for passenger cars, with an improved gas mileage of about 60 percent.

Secretary LaHood said the Monday night end date will allow car dealers and buyers plenty of time to finalize purchases and submit applications for rebate from the remainder of the $3 billion provided by Congress.

Based on conservative estimates of valid transactions so far, DOT analysts have projected that there is enough money to continue accepting submissions until the Monday deadline.

Applications for rebates will not be accepted after 8 p.m. EDT Monday and dealers should not make further sales without receiving all the necessary paperwork from their customers.

Dealers are also strongly advised to submit complete applications, which will expedite payment. Dealers will still be able to resubmit rejected applications after the deadline.

The Department of Transportation is continuing to expand the number of people processing dealer applications for rebates by adding federal workers to the outside contractors currently at work.

For more information, visit www.CARS.gov.

2 Responses to “Hugely popular CARS program winds down Monday (Aug 24)”

  1. jasonbradyut says:

    Good…, as they say, all good things come to an end. Actually, this could be considered a BAD thing b/c it’s CRAZY, we are giving people money to live more vicariously and lavishly than before all this economical bust took place? What are we doing? Spoiling every single last American? Let’s learn to live in moderation, then we wouldn’t have so much debt…Well, the fish sticks from the head..so the head is the While House…right?

  2. Hope they bring it back again. The government finally came up with a program that worked and didn't scream raid our pockets (yes I know where the money came from)

    Rick

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