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Dealers CARS Payments Begin

US Secretary of Transportation Ray LaHood announced last night that dealers participating in the Car Allowance Rebate System (CARS) will begin getting reimbursed for the cash for clunkers incentive starting today.

"We fixed our Web site problems," LaHood was quoted as saying by Autonews. "We believe processing will go much smoother." So far, according to LaHood, dealers submitted 157,000 applications, amounting to $664 million.

Dealers will have to wait ten days after filing their applications before getting reimbursed. Troubles however began when, due to some computer-related problems, dealers were unable to properly fill out their applications.

According to Lahood, if the Senate acts on President Obama's call to approve the $2 billion extra for CARS, the program could run well until Labor Day (September 7). The fate of the program will be decided by Saturday, when the Senate will enter recess.

As for CARS statistics, they show the most sought after vehicle participating is the Ford Focus, followed by Toyota Corolla. According to Autonews, the top five is completed by Honda Civic, Toyota Prius and Toyota Camry. With three entries in the top ten, Toyota appears to remain a favorite brand among Americans.

The state with the most dealer requests is Michigan, ranking first with requests amounting to $34.4 million. Michigan is followed by Ohio ($29.3 million) and California ($26.4 million). At the opposite end we can find states with a regularly low car park: Alaska ($1 million) and Hawaii ($0.7 million). The last of the pack is Wyoming, the least populated state in the US (2007 data), with only $0.3 million-worth of requests coming from here.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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