Cash for Clunkers--an update and a putdown

HERE'S THE LATEST ON THE CLUNKERS PROGRAM FROM THE FEDERAL WEBSITE. "In response to overwhelming interest in the CARS program, NHTSA has clarified that consumers who want to purchase new vehicles not yet on dealer lots can still be eligible for the CARS program. Dealers and consumers who have reached a valid purchase and sale agreement on a vehicle already in the production pipeline will be able to work with the manufacturer to receive the documentation needed to qualify for the program." DEALERS DEALING "We’ve heard that dealers are asking consumers to sign agreements with contingencies when they participate in the CARS program.

CONSUMERS ARE NOT REQUIRED TO SIGN CONTINGENCY AGREEMENTS TO PAY BACK THE DEALER SHOULD THE CARS CREDIT BE REJECTED.

We’ve also heard that dealers are asking consumers to keep their “clunker” until the deal is approved by NHTSA.

IF THE DEALER HAS THE NEW CAR IN STOCK, THE DEALER MUST ALLOW YOU TO TAKE POSSESSION OF THE NEW CAR BEFORE THE DEALER MAY SUBMIT THE CREDIT APPLICATION TO THE GOVERNMENT. PLEASE REPORT ANY DEALER TO NHTSA THAT DOES NOT ALLOW YOU TO TAKE POSSESSION OF A NEW CAR PURCHASED UNDER THE CARS PROGRAM. PLEASE CALL THE CARS HOTLINE AT (866)-CAR-7891."

The program is slated to stop at the end of October. Whaddaya bet there's a further extension? Meanwhile a U.C. Davis study finds the cash for clunkers to be a very costly way to reduce greenhouse gas emissions. But many of our readers here realize this is about money for the auto industry, not about cleaning up the environment. [poll id="161"]