Dealers Say Cash-For-Clunkers Boosting Sales

July 28, 2009

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July 28, 2009

After the launch of the government's cash-for-clunkers program this past weekend, dealers say it is boosting sales. Despite pages of regulations, last minute changes to car eligibility and other gripes, about 16,000 dealers have signed onto the program. The government is spending $1 billion on the program in hopes of encouraging new car sales.

LINDA WERTHEIMER, host:

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WERTHEIMER: After the launch of the government's cash-for-clunkers program this past weekend, dealers say the program is boosting sales. Despite pages of regulations, last-minute changes to car eligibility and other gripes, about 16,000 dealers have signed onto the program. The Detroit Free Press reports that dealers in that area have been flooded with customers, who could be eligible for vouchers up to $4,500. The credits are meant as an incentive for consumers to buy more fuel-efficient cars. One dealer told the newspaper he has 70 deals pending. The government is spending $1 billion on the program, hoping for a quarter of a million new car sales.

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