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Cash for Clunkers Deadline

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There has never been a better time to take $3,500 or $4,500 from the government for trading in your gas-guzzler. But come 8 p.m. EDT today (Monday, August 24), time’s up. That’s when the Obama administration ends the cash-for-clunkers program to prevent car dealers and shoppers from claiming more than the $3 billion Congress approved.

The decision means that the program expected to generate 250,000 vehicle sales over three months will have triggered more than 700,000 in about a month. While meeting goals of destroying gas guzzlers and spurring auto production, the larger effects of the plan on the economy and environment will be long debated.

It also has generated many complaints from dealers who say the government has been slow to reimburse them. Federal officials claim dealer mistakes are often to blame for the delays. So far, 8% of the $1.9 billion in deals submitted have been paid.

Dealers can appeal those calls after Monday’s deadline, but it could take weeks for the backlog to clear. President Barack Obama told a Philadelphia radio show recently that dealers “will get their money, but we’ve got to process it properly.”

Only about one in five of the cash-for-clunker deals reviewed by federal officials has won approval so far, raising questions about whether dealers have been too lax in enforcing rules or federal officials too strict.

Monday’s 8 p.m. deadline applies only to new deals as the program winds down; the government will continue processing deals turned in for some time, and dealers will have chances to correct any transaction kicked back by the government. In recent days the U.S. Department of Transportation had boosted the number of people processing clunker deals to 1,200.

Ahorre August 24, 2009 10:34 AM