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'Cash for clunkers' program still powering sales


PHOTO
Cash for Clunkers

SEE ALSO: Cash for Clunkers Consumer Guide-Qualifying Vehicles

Los Angeles August 10, 2009; Richard Verrier writing for the LA Times reported that car buyers throttled back from the mad dash last week, but sales were still brisk over the weekend as the "cash for clunkers" program continued to attract crowds to Southern California dealerships.

The Senate on Friday voted to pump an additional $2 billion into the popular auto rebate program, which should be enough to extend it through Labor Day. As expected, that slowed traffic somewhat to dealerships after last week's frenzy, when consumers rushed to car lots fearing that the program would run out of money.

Although car sales didn't double like the weekend before, they were still 25% to 50% higher than usual at many dealers in Los Angeles County -- a surge attributed to the clunkers rebate.

"We're still extremely busy," said Don Rohde, sales manager at Galpin Ford in North Hills. "I don't have enough salesmen to handle the demand."

The dealership sold 70 new cars over the weekend. That's down from 115 the week before but 50% higher than in recent months, Rohde said. He attributed 80% to 90% of the new-car sales to clunker trade-ins.

"The program has been fantastic for us," said Sammy Kobeissi, sales manager at Power Ford in Valencia. "It's not quite at last week's level, but it's still carrying over. There are a lot of people coming in."

The clunkers program, which began July 24, gives car buyers a $3,500 or $4,500 rebate when they trade in gas guzzlers for more fuel-efficient vehicles.

Complete LA Times Cash For Clunkers Article.