Dealers Worried Car Clunker Program May Run Out of Cash

Car dealers are concerned that the government's "cash for clunkers" incentive program could run out of money as soon as the end of August, due to the initial demand from consumers.

"It's important for customers to act because we don't know when the curtain is going to fall on this thing," said John McEleney, chairman of the National Automobile Dealers Association told the WSJ.

McEleney said he has been fielding calls from dealers who are worried that the $1 billion set aside for the program could run dry by the end of next month.

The cash for clunkers program offers up to $4,500 in federal rebates for consumers who trade in older vehicles to buy new, more fuel-efficient models is scheduled to run until the end of October.

Drew Hammill, a spokesman for House Speaker Nancy Pelosi called it premature to conclude the program needs more funds. "Before considering expanding the program, we would want to evaluate the current program," he said.

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