Cash for Clunkers allows reservation of out-of-stock models
Car buyers wanting to use the cash-for-clunkers program but can’t find the vehicles they want due to stock shortages will be able to reserve models under a change in the program, as announced by the Obama administration today.
The move comes after Michigan lawmakers raised concerns that automakers were running short of popular models, such as the Ford Focus and the Toyota Corolla, that would be hard to replenish before the program ends. New data suggests half of the $2.95 billion set aside for the program will be claimed within days, and that all of the money may be exhausted by early September.
Under the original rules of the program, owners of clunkers who qualified for $3,500 or $4,500 vouchers had to take delivery of a new vehicle from dealers’ stock, and only after the sale was complete could dealers file for reimbursements.
The U.S. Department of Transportation now says that dealers can reserve a vehicle from an automaker by using a vehicle identification number, and submit that number with the rest of the paperwork to the government.
As of today, 338,659 deals have been entered into the system, with $1.418 billion in vouchers claimed. At the rate of the past few days and based on the average claim, the program would run out of money in about 15 days, although some analysts have suggested demand could slow by then.