Cash-for-clunkers leaves car lots looking markedly empty

ByABC News
August 5, 2009, 12:37 AM

— -- Some auto dealers are running short of new cars even as the Senate is poised to join the House in adding $2 billion to the government's cash-for-clunkers program, which could sell another 500,000 vehicles.

Senate Majority Leader Harry Reid said Tuesday he had the votes to put $2 billion more into the program that gives up to $4,500 in rebates for trading in old gas guzzlers for newer fuel-efficient cars. Roughly 250,000 buyers have erased the original $1 billion for trade-ins, and the program ends Friday unless the Senate acts.

Dealers say they're running low on some models, especially small ones sought after in the clunkers program. The brightening economy and automakers' production cuts also have kept inventories tight.

"I'd buy another 300 Civics tonight," says Brian Benstock, general manager of Paragon Honda and Acura in Woodside, N.Y. Dealer Adam Lee says he would normally have 150 new cars on the lot at his family's Lee Toyota in Topsham, Maine. On Tuesday, he had 14.

Dealers and automakers say inventories aren't at critical levels yet because new shipments keep coming. But short supply is raising concerns because of the strong demand for the clunkers program, which is officially called the Car Allowance Rebate System, or CARS. How Detroit automakers' inventory is affected:

Chrysler. The small Jeep Patriot is now down to a seven-day supply, says spokeswoman Kathy Graham. It's not just the smallest models. There is only a 15-day supply of its Dodge Caravan minivans. After weeks of factory shutdowns, Chrysler now has a 40-day auto supply, 68% less than last year.

Ford Motor. Ford had 21,000 Focuses in stock as July ended, down from 38,000 in June. Pete Greiner, a dealer in Casper, Wyo., would love a few. "The Focus and Fusion lines have been depleted to nothing," he says. "We can't find a (Mercury) Mariner or Ford Escape," two small SUVs. "They're all gone."

General Motors.GM says its inventory levels are now at historic lows, and it's seeing spot shortages of different configurations of its full-size pickups, Chevrolet Silverado and GMC Sierra.