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Local Dealers See Spike In Sales |
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Thursday, 06 August 2009 |
By KATIE YANTIS
Staff Writer
ST. MARYS — A recent bill has helped local residents trade in an old car with cash incentives but also has left local car dealerships questioning when they will be getting their money.
Cash for Clunkers, passed in the beginning of July, offers owners of old cars or trucks up to $3,500 or $4,500 toward a new vehicle that is more fuel-efficient. The bill, originally funded with $1 billion, was quickly overused and a $2 billion proposal has been submitted to continue funding the program.
St. Marys Chrysler-Dodge-Jeep Owner Rick Green said his business is one locally that saw the booming effect of the bill.
“It was wildly successful to say the least,” Green said. “We got overrun last week and ran strong through Thursday and Friday.”
Green said despite the success of the bill, the confusion did set in about funding for the program.
“USA Today came out saying there was no more money, then it was started back up so there was a lot of confusion,” Green said. “There is still confusion. The House passed the additional $2 billion but Senate hasn’t passed it yet.”
Green said the overwhelming response to the program left local computer systems in turmoil as well as government computers.
“The computers were so jammed that she (Green’s wife) spent three to four hours per deal to get them submitted,” Green said. “The government computer system was understaffed and it is turning into a nightmare to get reimbursed.”
Green said from the consumer side, those who decided to partake in the program received their money and their new car. However the dealerships are now the ones waiting on money.
“From the consumer side, it was an excellent program,” Green said. “In time we will all be reimbursed, but right now it’s a headache.”
Green said the program did help sales in an already up year for the dealership.
“We have had a very good year,” Green said. “I don’t know that we particularly needed the program. There are people and lots of parts of the country that needed it.”
As for now, Green said those at St. Marys Chrysler-Dodge-Jeep are no longer offering the incentive.
“As the end of the last week, we backed off,” Green said. “We would like to see the return on our money before we continue writing deals, and we are out of small cars.”
He said the program came to a conclusion on it’s own anyway because of funding concerns.
“Cars are on order,” Green said. “As dealers submit orders, they won’t see anymore inventory to take advantage of any more of the program.”
Bud’s Chevrolet-Buick General Manager Jason Black also said the bill increased traffic at the business.
“Absolutely, it’s a positive thing,” Black said. “Every dealer in the nation has seen business from it. If you drive through anyone’s lot in Mercer and Auglaize County, there are hardly any new cars left.”
Black said the bill added to the success the business has had in 2009.
“We have a had a great year, we are tracking to have a better year in 2009 than we had in 2008,” Black said. “This is taking us to the next level.” |
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Last Updated ( Tuesday, 01 September 2009 )
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