Cash-for-clunkers leaves car lots looking markedly empty [View All]

[depakid]

Source: USA Today

Some auto dealers are running short of new cars even as the Senate is poised to join the House in adding $2 billion to the government's cash-for-clunkers program, which could sell another 500,000 vehicles.

Senate Majority Leader Harry Reid said Tuesday he had the votes to put $2 billion more into the program that gives up to $4,500 in rebates for trading in old gas guzzlers for newer fuel-efficient cars. Roughly 250,000 buyers have erased the original $1 billion for trade-ins, and the program ends Friday unless the Senate acts.

Dealers say they're running low on some models, especially small ones sought after in the clunkers program. The brightening economy and automakers' production cuts also have kept inventories tight.

"I'd buy another 300 Civics tonight," says Brian Benstock, general manager of Paragon Honda and Acura in Woodside, N.Y. Dealer Adam Lee says he would normally have 150 new cars on the lot at his family's Lee Toyota in Topsham, Maine. On Tuesday, he had 14.

Read more: http://www.usatoday.com/money/autos/2009-08-04-cash-for-clunkers_N.htm

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One might think a stimulus like this would change a few dealers' preferences at the voting booth.... Yet

Nah- and don't expect it- because that's not why this and other programs were put together on the first place.