NADA Pleased with CARS Refuel

The National Automobile Dealers Association (NADA) is pleased with the passing of the additional $2 billion in funding for the Car Allowance Rebate System (CARS). The new funding, estimated to keep CARS running until at least the first week of September, is now awaiting President's Obama signature. NADA also takes pride of being among the first to warn the US Department of Transportation (DOT) that the program's funding was running dangerously low, because of computer glitches which caused transactions not to be reported accurately.

"Cash for clunkers is a resounding success," said John McEleney, NADA chairman and also a Iowa dealer said in a release. "With the additional $2 billion, even more 'clunkers' will be taken off the road and replaced with more fuel-efficient vehicles. Extending the 'clunkers' program benefits
the environment and the economy. It's the best kind of stimulus."

NADA also provided the results of a survey they conducted. According to their figures, more customers are going for the higher $4,500 credit, which means a 10 mpg improvement over the trade-in than for the $3,500 credit (a four mpg increase over the trade-in). The ratio between the two credits is two-to-one in favor of the higher credit.

Of course, there were those opposing the extra funds, as fears rise that the program may make things worse than they were before the program was implemented. According to Richard Shelby, the top Republican on the Senate Banking Committee, quoted by Reuters, CARS has "squeezed months of normal activity" in just a few weeks.

"When the backlog is met, interest in the program will fade, and the facade of economic benefit will disappear," Shelby told Reuters.