Cash For Clunkers Program Has Chrysler Dealers Running Out Of Cars

Chrysler Group LLC is dropping an incentive plan that offered to double the government's "cash for clunkers" rebates amid complaints from dealers that inventory is running short.

The move also comes after the cash for clunkers program, which offers rebates from the government of up to $4,500, brought waves of consumers into dealer showrooms.

In July Chrysler offered to double the rebate by adding up to $4,500 in incentives of its own for customer who qualify for the program. Clunkers rebates are available to consumers who trade in older vehicles and buy new, more fuel-efficient models.

Effective Tuesday, Chrysler will no longer offer a flat $4,500 rebate on top of the clunker incentive. Instead, it will vary the size of rebates, depending on the model and brand a customer selects.

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EL34 - 8/3/2009 11:47:53 AM

-1 Boost

Once tax payers cash for clunkers is over what will motivate people to buy cars?

Joe_Limon - 8/3/2009 2:00:30 PM

+4 Boost

I am guessing the people who didn't have clunkers before the bonus and therefore didn't qualify for the program will still be buying cars... and they are usually the ones that purchase new cars. The clunker drivers usually stick to the used market.

Foreigner - 8/3/2009 1:54:50 PM

+2 Boost

In about 2 years, all of these Chryslers are going to be clunkers themselves.

bfghemicuda - 8/3/2009 9:39:22 PM

+3 Boost

Just during The Chapter 11 procedures. Since July 27th Chrysler has 9 of its 11 factories in production.