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Cash for Clunkers To Close On Monday

August 20, 2009

New York - The Department of Transportation has announced that the highly popular “Cash for Clunkers” program will be winded down by the government on Monday at 8 p.m.

According to the Transportation department, there is enough money to continue accepting submissions until the Monday deadline based on conservative estimates of valid transactions.

The $3-billion dollar Car Allowance Rebate System has recorded more than 457,000 dealer sales worth $1.9 billion in rebates. The program, which provides car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models.

According to the administration, 40 percent of the transactions have been already paid out amounting to $145 million to dealers. In an interview with President Barack Obama, he has assured the dealers who participated in the program that they will get their money.

The administration however, emphasized that the applications for rebates will not be accepted after 8 p.m. on Monday and that dealers should not make additional sales without receiving all the necessary paperwork from their customers.

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