Cash for Clunkers Provides Much Needed Spike in Sales to Local Dealerships

Summary

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[...] though the program was scheduled to run through November 1, the initial $1 billion devoted by the federal government was completely depleted by July 30. According to some analysts, sales that occurred this summer under Cash for Clunkers would have occurred naturally in 2010, which may result in a hole in demand in the months to come. The program's timing was particularly beneficial for automotive dealers here in the Coachella Valley, which usually suffer through the slow summer months with lighter sales numbers before the high season brings dealership traffic back up.

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Cash for Clunkers Provides Much Needed Spike in Sales to Local Dealerships

After a busy stretch of bustling activity at the Coachella Valley's car dealerships, the Car Allowance Rebate System(CARS), better known as Cash for Clunkers, has come to a close. The program, which commenced officially on July 1, began processing claims on July 24 and ran through August 24, at which time the resources allocated by the government had been exhausted. During that window of time, 690,114 dealer transactions were submitted nationwide under the program, for a total value of $2.8779 billion in rebates, according to the Department of Transportation....

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