www.cacjohnson.com

Jobs,Work,Careers,&Money,Credit,Debt

Cash 4 Clunkers:

“Frustrating delays in both processing requests and receiving federal payments plagued Quincy-area car dealerships throughout the month-long "Cash for Clunkers" stimulus program, but all are reporting satisfaction with the concept itself and number of cars sold during the government-backed Car Allowance Rebate System program that ended Tuesday.” http://www.whig.com

On Monday August 24^th the Car Allowance Rebate Program officially ended. Since its inception and introduction to the public, a pragmatic and expedient program ”Cash for Clunkers” was created to revive the economy , to promote fuel efficient cars and to assist the auto industry with the sale of its auto mobiles. Specifically implemented to assist the auto industry with saturnine sales of cars across the United States, the Car Allowance Rebate Program was greeted with skepticism by auto dealers. The Car Allowance Rebate Program also called the “Cash for Clunkers” program became effective immediately on July 1^st,2009. Incontrovertibly,the devastating impact on the auto industry and auto dealers in the United States became evident with several auto makers filing for bankruptcy, closing manufacturing plants and laying off employees. As a result of the economic recession of 2008, congress intervened in what has now become known as the”Federal Bailout” of large corporations. At the same time large corporations began receiving assistance from the federal government the auto industry slowly began to disclose it financial projections and losses. Subsequently,in conjunction with the Economic Stimulus plan of 2009 the Obama administration implemented the Car Allowance Rebate Program,as part of congress initiative to Going Green and to proliferate the sale in the auto industry. The “Cash for Clunkers” program allowed American consumers to trade cars with the make beginning in the year 1985. Consequently, the rebate program also allowed consumers to purchase with the government rebate a more fuel efficient car. Although,some dealers complained of the strict guidelines in the “Cash for Clunker” application could preclude trade ins,consumers continued to visit local dealership and trade in cars. Ostensibly, consumer interest in the program,however,did not cease auto dealers concerns that the strict criteria could deter potential sales. Frequently throughout the program, auto dealers voiced grievances pertaining to not receiving funds from the government in a timely manner for the clunkers traded at the dealerships. Eventually,congress appropriated an additional 1 billion dollars to extend the program because of its popularity with American consumers. While some American consumers conveyed mixed messages about the program, analyst reported the “Cash for Clunkers” program was an success. Among the complaints conveyed by some auto dealer and consumers, media news outlet reported the Department of Transportation processed over 150,000 reimbursement application before the program officially ended. Not surprisingly the popularity of the program with consumers along with the critical assistance analyst and auto dealers prognosticated would be required to proliferate the sale in the auto industry as well as cease the downward spiral of the effects of the economic recession of 2008 , the “Cash for Clunkers Program” ended two months before the programs completion date. Veritably,consumers that applied online @ http://www.cars.govto verify if they qualified for program received email updates and was informed the program would continue until its completion date or until all funds allocated towards the Car Allowance Rebate program was exhausted. As one news media outlet reported,“The government may have underestimated the popularity of the program, Bender said, because the $1 billion originally set aside was supposed to last through October. The program ended after roughly a month with an extra injection of $2 billion.” http://www.pntonline.com