Cash for Clunkers is coming to an end. National Automobile Dealers Association officials have asked the government to suspend the Cash-for-Clunkers program because a survey by the group found that the $3 billion fund has been exhausted, NADA Chairman John McEleney said.

While the Cash for Clunkers program is coming to an end, manufacturers and dealers are concerned that their business will return to pre-clunker levels. To address this concern, some of the leading U.S. Automotive Retailers are participating in a privately funded stimulus program to help consumers who were left behind by the government's plan.

Due to the restrictions of the government's program, more than 90 percent of consumers were not eligible. As a result, some of the largest retailers in the country are promoting a new dealer funded stimulus program that gives consumers up to $4,500 of additional trade-in value towards the purchase of a new or used vehicle.

The new stimulus plan is more inclusive because all trade-ins older than 2007 are eligible regardless of their current mpg and consumers can purchase or lease any new or used vehicle with an improved fuel economy of two mpg. This is a contrast to the government program which excluded trade-ins with more than 18 mpg, used cars and short term leasing and some vehicles needed to get at least four mpg improvement to qualify.

"The business that came from the Cash for Clunkers program started off very strong and it has since leveled off," says Vince Sheehy from Sheehy Automotive Group in Washington DC, Virginia, Maryland and Baltimore. "But we did not expect it to end so fast."

While clunker business began to slow down, dealers participating in the New Stimulus Plan have seen their sales continue to rise because they are helping the larger group of consumers that were left behind by the government program.

In fact, according to Brian Benstock, General Manager and Vice President at Paragon Auto Group in New York, says it has helped them rise from 17th in new vehicle sales to number four in the nation.

In addition, the used vehicle component of the new stimulus plan has helped them become the number one certified pre-owned Honda and Acura dealer in the world this month.

"This is our best used vehicle month ever," says Benstock.

Paragon's results since the New Stimulus Plan took effect have led to a historic month:

- They are on pace for 600 new vehicles to be sold and 300 used vehicles. This represents a 100-percent increase in new car business and a 50-percent increase in pre-owned business.

- 900 vehicle sales created estimated sales tax revenues of $2,000,000 for the month.

- 900 unit sales created $24,000,000.00 in gross sales.

John Malishenko, Director of Operations for Germain Automotive who owns dealerships in Ohio, Arizona, Florida and Arkansas, another participating dealer in the Stimulus Plan, is reporting that his dealership just had their second best three-day weekend of the year.

"We've seen a 40-percent increase in unit sales versus July and we are currently pacing $45,000,000 of sales for the month," says Malishenko. "While other dealer's business has been falling off we are picking up."

The program has worked well because it has focused on the majority of the people that were not eligible for the government plan.

In the wake of the government's program, dealers are running low on cash and their inventories are lopsided with most of the new vehicles that qualify selling out while they still have a surplus of other vehicles that don't qualify.

"The new dealer stimulus plan will help us sell the cars that are left over and help us build up our used vehicle business," says Benstock.

Used vehicle inventories have shrunk because the clunkers have to be destroyed.

"We have to buy more used cars at auctions for higher prices," says Malishenko. "I would prefer to give customers 20 percent more for their trade-in to earn their business rather than paying more to Manheim Auction. If I overpay under the new stimulus plan, I still sold a car and I have a customer who will service with me over the long term."

The dealer-funded Auto Stimulus Plan includes used vehicles and allows dealers to resell the trade ins.

"Letting consumers buy a used vehicle or lease a new vehicle makes it affordable for a lot of people who could not participate otherwise," says Scott Gruwell from Courtesy Auto Group in California and Arizona, one of GM's largest dealers and a participating dealer.

"We needed to do something to help out all the customers who were upset that they could not participate," says Rick Case, owner of Rick Case Automotive Group in Florida, Georgia and Ohio. "Consumers love it because the new stimulus saves them a lot of money on their purchase and reduces their gas and repair bills."

The Auto Stimulus Plan is a private sector program promoted by retailers to provide incentives to consumers that will help the economy and the environment at the same time. To qualify for an incentive a consumer must select a new or pre-owned vehicle with a two mpg improvement over their current vehicle, which is the same requirement the government program has for SUV's, but it applies to all vehicles under the dealer's plan.

"The MPG requirements are lower because our primary goal is to help consumers that don't qualify for the government's program and to stimulate the economy through improved sales, jobs and spending," says Gruwell. "As a result, the environmental benefits may not be as big as the government program but it will help more customers get into more fuel efficient vehicles."

"If a consumer does not have a trade, they can benefit from the extraordinary manufacturer incentives that are out today," adds Case. "In addition to the stimulus, our dealership is offering up to $4500 of savings to consumers."