'Clunker' vouchers proposed as eligible new cars get scarce
DETROIT -- As the "cash-for-clunkers" program finishes its fourth week, the government is weighing a voucher program that could let consumers take delivery later of new cars that are unavailable now.
Rep. Candice Miller, R-Mich., and Rep. Fred Upton, R-Mich., sent a letter to Ray LaHood, Secretary of Transportation, asking him to consider allowing consumers to use vouchers to order cars from auto manufacturers, closing the deal once the car comes in.
Miller says she's heard from many dealers in her district who say they're out of cars that qualify and that it could be weeks or more than a month before more cars make it to their lots.
"We want to make sure we're maximizing the program," she said. "We're not asking for any more money, or asking to expand the program."
At the end of July, some carmakers said they were starting to run low on popular models that fit the cash-for-clunkers program. Miller says it's a good problem to have, but one the government should be working to address.
The program is "exceeding everyone's expectations," she said. Depleted inventories are "a wonderful problem to have. We haven't have a conversation like that in this area for a long, long time."
While sales were up in July, Edmunds.com says interest in the program is beginning to wane. And dealers are getting angry because many aren't getting reimbursed by the government quickly enough, says Jeremy Anwyl, CEO of Edmunds.
"I think the bubble has kind of burst already," Anwyl said. Dealer showroom traffic is down 15% since the end of July, he said.
Fewer dealers may be inclined to participate after a Wednesday announcement from the National Highway Transportation Safety Administration, which oversees the program.
NHTSA added a notice to its Cars.gov site warning consumers not to sign any waivers that would force them to refund the dealer any money if the rebate falls through. And dealers have to allow buyers to take their new cars home, not leave them waiting at the lot for the credits to go through.
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