Cash Tight As Clunkers-Dealer Deadline Extended Again

Cars

Last night, the Cash for Clunkers program officially ended at 8 p.m. EST. However, the Department of Transportation has extended the deadline for dealers to file paperwork a second time; they have until 8 p.m. EST tonight to get their forms in order.

As of this morning, the government said that 665,000 deals — totaling $2.77 billion — had been registered. After the $100 million set aside for administrative costs that leaves only $130 million in the pot for the backlog of orders. That’s roughly 32,500 more vehicles at an average of $4,000 per clunker credit.

Leading up to this weekend, the average number of sales in a day hovered in the 20,000 range, but an onslaught of last-minute shoppers might mean there could be more deals than money.

Clunker paperwork deadline extended again (Detroit Free Press)

By David Thomas | August 25, 2009 | Comments (1)

Comments 

CyCarConsulting

Where have all the clunkers gone?

Apparently not that far. Dealers are holding on to them until they are reimbursed. Some have not disabled the cars yet for fear of being stuck without the money. So then what? If they end up at the yards, there is a 6 month period to strip the car of its saleable parts, excluding the drive train, before crushing the rest.
If the dealer is stuck with the car, and it runs decent, it will be remarketed ,or wholesaled at a dealer auction ,for much more than the salvage value.
From what information I can get ,I estimate that less than 1% of the cars were sent to the scrapper so far.

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