Car dealers hope Cash for Clunkers drives up sales

News 14 Carolina, July 24th 2009
By Miracle King

The government's new Cash for Clunkers incentive program has buyers driving off car lots in droves. The program - formally called the Car Allowance Rebate System - encourages car buyers to trade in older, gas-guzzling vehicles for brand new fuel-efficient ones.
The program started Friday and is not only meant to help the environment, but also car dealers, buyers and North Carolina's economy.
"We have about 600 dealerships in North Caorlina, every one of which is ready to sell a new car and get that old clunker off the road," Bob Glaser, president of the North Carolina Auto Dealers Association, said.
The program helps shoppers buy or lease a more environmentally-friendly vehicle when they trade in a less fuel-efficient car or truck. But not all trade-ins will qualify.
"If it's [an improvement of] at least four miles to the gallon, they get $3,500. If they pick a car ou that gets [an improvement of] 10 milers to the gallon or more, they get $4,500," Todd Holmes, general manager at Leith Honda in Raleigh, said.
And there are more stipulations. The car has to be drivable with at least a years worth of insurance history. It can't be more than 25 years old. You have to purchase a new car when you trade, and the retail price of your new car can't exceed $45,000.
Though the ride may be a little bumpy for buyers, dealerships have finally gotten their safety belt to help them from flying off this crashing economy.
"Our average sales in North Carolina were about 33,000 to 35,000 a month, and with the economic downturn in the fourth quarter of 2008, our vehicle sales have dropped at about 20,000 units per month," Bob Glaser, with the North Carolina Auto Dealers Association, said. "That's about a 40 percent decrease in the state of North Carolina, so we are very pleased to have the Cash for Clunkers program in effect."