'Cash for clunkers' good through Friday; and beyond?

ByABC News
July 31, 2009, 10:38 AM

— -- The Obama administration promised on Friday that the financially strapped "cash for clunkers" program would be good at least through the day.

Sen. Carl Levin, D-Mich., said he got the word from Transportation Secretary Ray LaHood as members of the Ohio and Michigan congressional delegations huddled on Capitol Hill to discuss ways to keep the popular program alive.

"Beyond Friday," Levin said, "depends on whether the administration can find some money."

John McEleney, chairman of the National Automobile Dealers Association, said many dealers have been confused about whether the program will be extended and for how long. Many stopped offering the deals Thursday after word came out that the funds available for the refunds had been exhausted.

"We are hoping for some clarity from the White House and Congress before the day is over," McEleney said Friday.

Carmakers and dealers have booked expensive advertising to capitalize on buyers' interest in CARS, and now will be left promoting a tie-in with an uncertain government program one that wasn't supposed to end until Nov. 1. "Disappointed," said Chrysler spokesman Scott Brown.

"It's too late to recall the ads," says Beau Boeckmann of Galpin Ford, the nation's largest Ford dealer, in Los Angeles. Galpin had done about 100 clunker deals and was hoping for more. " We had increased our ad budget to get the word out. We are very heavy on radio, newspaper and getting direct mail together," Boeckmann says.

"Now what do you tell people when they walk in" for a clunker deal? "It's tough."

One participant in the Capitol Hill meeting said they were examining possible funding sources and whether there were any glitches in the computer system. The participant, who spoke on condition of anonymity because of the sensitivity of the talk, said they were also studying how many dealers had enrolled in the system.

Through Wednesday afternoon, more than 23,000 dealer franchises were participating, according to the National Highway Traffic Safety Administration.