I noticed back to back stories in the Wall Street Journal Thursday and Friday on the “Cash for Clunkers” program that Congress approved as part of the set of legislative initiatives that have come to be known as the economic stimulus package. John McEleney, chair of the National Automobile Dealers Association (NADA) kicked up concern when he reported that he had been hearing from members that the program might run out of money before the eligibility term expired.

I’ve been talking to our dealer clients about it and they report real sales activity due to this finanical incentive program that encourages consumers to convert lower gas mileage automobiles and light trucks to higher gas mileage ones with a cash program that lowers the purchase price of the new vehicle. As one of the only stimulus programs that has worked quickly, and is accomplishing the intended purpose, this effort needs to continue at least to the end of the original period.

Apparently, Congress believes this as well, because the House has already approved diverting funds from those intended for energy loans to the “cash for clunkers” effort to keep it running through October. Today, it is before the Senate, and dealers like my clients are hoping that they approve the additional $2 billion to keep this economic package rolling.

Tags: auto law, dealer operations, recovery, stimulus

This entry was posted on Monday, August 3rd, 2009 at 8:19 am and is filed under automotive law, consumer credit, financial issues. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.