The Obama administration plans to end the popular $3 billion Cash for Clunkers program on Monday, giving car shoppers a few more days to take advantage of big government incentives.
The Transportation Department said Thursday the government will wind down the program on Monday at 8 p.m. EDT. Car buyers can receive rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models.
"It's been a thrill to be part of the best economic news story in America," Secretary Ray LaHood said in a statement. "Now we are working toward an orderly wind down of this very popular program."
And as it winds down, the Obama administration is trumpeting the Cash For Clunkers program as a great success, while critics have claimed it’s been plagued by problems. So, was the program a success or failure? In my opinion, if Cash For Clunkers is an example of a government SUCCESS story, then they have incredibly low standards for success.
For one thing, the program was plagued with problems. The physical manifestation of the problems is the seeming inability to actually issue checks to dealers in anything approaching a reasonable time frame. And as I wrote yesterday, most of the dealers in New York decided to leave the program. Today, we find the same thing is happening in New Mexico.
Some New Mexico auto dealers have backed out of the cash-for-clunkers program and more may do so as the federal government takes its time providing cash reimbursements.
Dealers across the state are owed more than $3.6 million, according to a dealers' group which says that so far Uncle Sam has only written three checks totaling about $14,000.
That, by the way, is even below the average for the program. So far they’ve paid 2% of claims… but only 0.38% of claims in New Mexico. No wonder dealers across the country are getting fed up.
And remember, if our government can’t even run a simple rebate program well, do you REALLY want to entrust your health care to them?
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