‘Clunkers’ Comes to an End

The ‘Clunker’ program is officially over. The Transportation Department extended the deadline Monday for auto dealers to submit their Cash for Clunkers deals, giving them more time to make sure they get repaid under the popular $3 billion government rebate program. Dealers were given until noon Tuesday to submit the necessary paperwork, after the deadline was pushed back from 8 p.m. EDT Monday. All sales under the program ended Monday evening. The change came after government computers set up to handle the filings buckled under a flood of dealers trying to send in their sales agreements at the last minute. The big rush of filings on Monday shut down the filing system temporarily, prompting auto dealers to push for an extension. Many car dealerships have worked overnight in recent days to submit the 13-page application to be reimbursed for the trade-in vehicle, including the title, proof of registration and proof of insurance.

The good news was the program was far more popular than expected; the bad news was the government computer system that handles the filings was not quite ready for so any transactions.  However, about half way through transportation officials expanded its computer network capacity and tripled the number of staffers working on the program. Transportation officials claim the program was an unprecedented success and a boost for car dealers, automakers, scrap yards and financial institutions.