Car Allowance Rebate System

The Lincoln Continental with leather seats, the shiny gray Mercedes-Benz, the immaculate Lexus ES 300 and the impeccable Cadillac DeVille seem out of place in this San Fernando Valley junkyard, where wrecks of VW bugs and pickup trucks bare their smashed hoods like fangs at the pretentious newcomers. They may be luxury cars in name, but now they're just like the other clunkers surrendered for car-buying cash in the government's Car Allowance Rebate System, or CARS. It might seem like a waste.

Reporting from Los Angeles and Washington Martin Zimmerman -- The $3-billion cash-for-clunkers program limped to a close for consumers Monday evening after packing an economic punch for the nation -- and a nightmare of red tape and computer glitches for dealers who are owed millions of dollars by the government. So pervasive were the problems that the Department of Transportation gave dealers until 9 a.m. today to file their applications for reimbursement of discounts, which amounted to $3,500 or $4,500 for every new car sold.

With surprising swiftness, the government's "cash for clunkers" program has burned through its $1-billion budget in less than a week as car buyers swarmed dealerships, and federal officials were scrambling late Thursday night to find more money to keep it going.

As the federal government's "cash for clunkers" program winds down, car buyers who go shopping over the next several weeks may find the selection a bit thin. The clunker program, which ends at 5 p.m. PDT today, created such a stampede of buying during its one-month life that many dealers' inventories of new vehicles drained to bottom-of-the-pool levels. And used-car supplies, already tight, will get a bit tighter. "You're not going to be able to find the car you want in September," said Rich Smith, chief financial officer of the company that owns David Ellis Chrysler Jeep in Canoga Park and Jack Ellis Glendale Dodge.

Consumer advocates called on federal officials today to crack down on auto dealers that they contend are taking advantage of car buyers participating in the government's "cash for clunkers" program. In some cases, the groups said, dealerships are requiring buyers to sign agreements that oblige the consumer to repay the dealer for the program's $3,500 or $4,500 rebate if the government denies the claim -- despite a government advisory that consumers are not required to sign such agreements.

The cash-for-clunkers program will continue at least through this weekend, and perhaps beyond. Here's a Q&A guide to how it works: What's the basic idea? You trade in a used car and you get a new car with better gas mileage for a $3,500 or $4,500 discount. The federal government is funding the program. Does the program apply to private transactions? No. You have to go to a participating dealer. Is the program retroactive? Yes.

The moment of clarity for me came Sunday, the second night of the Gooding & Co. classic car auction. On the block was a 1971 Chevrolet Monte Carlo, as wretched and routine a hunk of Detroit iron as ever freighted down an assembly line. Spot-welded together with the craftsmanship one might expect of unsupervised political prisoners, the Monte Carlo -- with a 402-cubic-inch V8 engine and four-barrel carburetor -- was and is a sidewalk-fumigating stink bomb, with no steering or handling to speak of, and brakes that are more rumor than fact.

After gorging on clunkers this summer, can automakers make it through the fall? That was the question buzzing through the industry Thursday as the government announced that the popular "cash for clunkers" program would end at 5 p.m. Pacific time Monday. Economists credit the program with reviving moribund car sales. But with the cash incentives gone, some fear the newly buoyant auto market could quickly crash in its wake -- just as automakers rushed to boost production in response to clunker-driven sales.

Auto dealers found themselves in an unusual situation over the weekend: crowds of anxious buyers and a dwindling supply of cars. The overwhelmingly popular $1-billion federal effort to stimulate auto sales gave dealers another busy weekend, capping nine days of activity they hadn't seen in a long time. And the "cash for clunkers" program will continue for at least two more days.

Reporting from Los Angeles and Washington Martin Zimmerman -- The $3-billion cash-for-clunkers program limped to a close for consumers Monday evening after packing an economic punch for the nation -- and a nightmare of red tape and computer glitches for dealers who are owed millions of dollars by the government. So pervasive were the problems that the Department of Transportation gave dealers until 9 a.m. today to file their applications for reimbursement of discounts, which amounted to $3,500 or $4,500 for every new car sold.

After gorging on clunkers this summer, can automakers make it through the fall? That was the question buzzing through the industry Thursday as the government announced that the popular "cash for clunkers" program would end at 5 p.m. Pacific time Monday. Economists credit the program with reviving moribund car sales. But with the cash incentives gone, some fear the newly buoyant auto market could quickly crash in its wake -- just as automakers rushed to boost production in response to clunker-driven sales.

The moment of clarity for me came Sunday, the second night of the Gooding & Co. classic car auction. On the block was a 1971 Chevrolet Monte Carlo, as wretched and routine a hunk of Detroit iron as ever freighted down an assembly line. Spot-welded together with the craftsmanship one might expect of unsupervised political prisoners, the Monte Carlo -- with a 402-cubic-inch V8 engine and four-barrel carburetor -- was and is a sidewalk-fumigating stink bomb, with no steering or handling to speak of, and brakes that are more rumor than fact.

Consumer advocates called on federal officials today to crack down on auto dealers that they contend are taking advantage of car buyers participating in the government's "cash for clunkers" program. In some cases, the groups said, dealerships are requiring buyers to sign agreements that oblige the consumer to repay the dealer for the program's $3,500 or $4,500 rebate if the government denies the claim -- despite a government advisory that consumers are not required to sign such agreements.

Car buyers throttled back from the mad dash last week, but sales were still brisk over the weekend as the "cash for clunkers" program continued to attract crowds to Southern California dealerships. The Senate on Friday voted to pump an additional $2 billion into the popular auto rebate program, which should be enough to extend it through Labor Day. As expected, that slowed traffic somewhat to dealerships after last week's frenzy, when consumers rushed to car lots fearing that the program would run out of money.

The Lincoln Continental with leather seats, the shiny gray Mercedes-Benz, the immaculate Lexus ES 300 and the impeccable Cadillac DeVille seem out of place in this San Fernando Valley junkyard, where wrecks of VW bugs and pickup trucks bare their smashed hoods like fangs at the pretentious newcomers. They may be luxury cars in name, but now they're just like the other clunkers surrendered for car-buying cash in the government's Car Allowance Rebate System, or CARS. It might seem like a waste.

Washington's $1-billion "cash for clunkers" program is getting credit for giving automakers, including Ford Motor Co., a huge sales boost in July. Now the question is how long it will last. Thousands of consumers eager to trade in rusty beaters for brand-new cars crowded dealership lots over the last week, delivering automakers their best month in more than a year and injecting hope into the troubled industry. Ford saw its first year-over-year increase in U.S.

Washington's $1-billion "cash for clunkers" program is getting credit for giving automakers, including Ford Motor Co., a huge sales boost in July. Now the question is how long it will last. Thousands of consumers eager to trade in rusty beaters for brand-new cars crowded dealership lots over the last week, delivering automakers their best month in more than a year and injecting hope into the troubled industry. Ford saw its first year-over-year increase in U.S.

Auto dealers found themselves in an unusual situation over the weekend: crowds of anxious buyers and a dwindling supply of cars. The overwhelmingly popular $1-billion federal effort to stimulate auto sales gave dealers another busy weekend, capping nine days of activity they hadn't seen in a long time. And the "cash for clunkers" program will continue for at least two more days.

Anxious buyers were rolling into Southern California car dealerships Friday, eager to snag a cash-for-clunkers deal while they still had the chance. And some dealers said they were girding for a hellish weekend with a lucrative twist. At Galpin Ford in North Hills, where huge banners promised "Big ca$h for your clunker," the showroom was packed with people. "I've never worked so hard," said Galpin salesman Brian Fraleigh, who said he worked selling cars until 3:30 a.m.