Yesterday, the Senate agreed with the House of Representatives that the successful “Cash for Clunkers” would get $2 billion extra (which was in the original request by the House, but cut by the Senate before the program was originally implemented), enough — most say — to keep the program going through August.

This is great news for consumers and new motor vehicle dealers, who have seen the first sales uptick in July in almost two years. Of course, the A.R.R.A. and T.A.R.P. programs which lubricate the credit markets are essential to the momentum of the automotive market.

Our clients are relieved. The “C4C” initiative, which aims to trade off the rebates for a booster shot for new car dealers and the manufacturers, as well as promotes fuel-efficiency, is a rising tide that floats all boats. Dealers still in business get the cash injection and have a market for their static inventory. In fact, some are running low on key models. In turn, manufacturers get to gear up again and, perhaps, call some workers back to factories idled in the spring.

The main things we like about the program are its speed, accountability, and stimulation of a chain reaction. Would that the bailout programs had done such a quick and visible job among our banks and other lenders!

What about you? Do you think the economic stimulus is having a positive effect on the business and consumer climates? What will it take to get the lenders doing what they are supposed to do?

Tags: auto law, dealer operations, stimulus

This entry was posted on Friday, August 7th, 2009 at 11:03 am and is filed under consumer credit, dealer operations, 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.