Auto dealers revved up for clunkers
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Jack Castellaneta, general manager of Formula Ford in South Barre, sits in a Ford Fusion hybrid that is a popular upgrade in the "cash for clunkers" program. Jeb Wallace-Brodeur/The Times Argus |
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By Peter Hirschfeld Vermont Press Bureau - Published: August 7, 2009
Vermont auto dealers are cheering the extension of a "cash for clunkers" program credited with energizing new-car sales in the region.
"I'll tell you this – it's kind of put a little bit of life back into the car business and created some excitement," says Brian Foley, sales manager at Formula Ford in Rutland.
The $1 billion Congress initially appropriated for the wildly popular trade-in program is already nearly depleted. On Thursday, the U.S. Senate approved a House bill that funds another $2 billion in federally subsidized rebates.
Used-car owners can get up to $4,500 toward the purchase of a more fuel-efficient new vehicle under the program. Jack Castellaneta, longtime general manager at Formula Ford in South Barre, says people have been lining up to take advantage.
"I think it's great," Castellaneta says. "It's good for business, and definitely is creating a stir in the neighborhood here to get people to come in and at least check it out."
Castellaneta, whose dealership did about 10 cash for clunker deals last month, figures he can get another 20 or 30 trade-in sales under the new extension.
"There's a heightened awareness from all the media surrounding this, and there are a lot of people who thought they may have missed out who are going to want to take advantage," he says.
David Sanders, sales manager at Twin City Subaru in Berlin, says he's completed about two dozen cash for clunker sales. He says the size of the incentive is generating showroom traffic from people who might not otherwise be in the new-car market.
"I think there are people who were planning on getting new cars at some point in the future, and this gives them that incentive to do it a little earlier," Sanders says. "And then there are people that have $100 cars and really not much interest at all in buying a new car, but since they're getting $3,500 or $4,500, they maybe go and do it, even if it's a $20,000 car."
The U.S. Department of Transportation, which administers the program, said Cash for Clunkers has generated more than 184,304 sales thus far. The Toyota Corolla has been the car of choice, according to federal statistics. State-specific data for Vermont was unavailable Thursday.
The program has had some hitches. The deal comes with reams of paperwork that have meant long and complicated hours for dealership personnel. And inventories at many lots have been depleted as dealerships struggle to keep pace with demand.
Castellaneta, though, says it's a worthwhile price to pay for a program that has finally landed a "good news" economy story on the front of the newspapers.
"Anything positive that can happen, whether in the car business, construction, housing – anything that can we can turn into positive I think is great," he says. "Because that's what it's going to take to turn this thing around."
Officials say the $2 billion in new funding should carry the program through Labor Day.
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