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Updated: 6:07 AM Jul 26, 2009
Cash for Clunkers Program Kicks Off
Staunton, Va. A program that started Friday is what dealers in the Valley are calling a much needed spark for the auto industry.
Posted: 5:07 PM Jul 24, 2009Reporter: Philip Townsend Email Address: ptownsend@whsv.com |
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A program that started Friday is what dealers in the Valley are calling a much needed spark for the auto industry.
The concept behind the Cash for Clunkers program is to take the old and replace it with new.
Mike Frend, at Paul Obaugh Ford in Staunton, says, "It's a big opportunity for both the consumer and the dealer."
Frend says they made four sales, with more in the works, through the new deal before lunch time.
He adds, "Actually helps us a lot. It gives us a chance to sell more vehicles."
Frend says it's been a slow few weeks, and now he says he's starting to see why.
"I think today shows," ads Frend. "This was what they were waiting for."
In order to use the program, you bring your old car in. If it meets a number of requirements, the dealer gives you anywhere from $3,500 to $4,500 towards the purchase of a new car, courtesy of the federal government.
Steve McDonough, from McDonough Toyota, says, "It's going to be a little difficult for the dealerships because there is going to be some downtime with getting the money from Uncle Sam."
On the other side of town from the Paul Obaugh dealership, McDonough says they're approaching double digit sales in one day thanks to the program. Despite that boost, he says they've met a roadblock.
McDonough comments, "It'd be nice to think that. The problem is we are really, a lot of manufacturers are low on inventory right now."
While dealers are still working out the specifics after getting a bundle of program rules, Frend says it may be the turnaround for which they've been looking.
Frend says, "I think this will help all the way around and it will be a big plus for the economy and the auto industry."
The program is expected to run for four months or until the $1 billion allocated by the government is gone.
Latest Comments
Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first. Jhenry Blogger
Is that $3500-4500 on TOP of dealer rebates and low financing rates or does it REPLACE those? Important to know.
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