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The US government will suspend the popular cash for clunkers program after almost four days, telling Congress they'll burn through the $950 million budget by midnight. That means over 21,000 work trucks and 242,000 cars were potentially sold.
The decision to suspend the plan came after auto dealers warned the government today that it was in danger of losing track of how many trades had actually been made.
A survey of 2,000 dealers by the National Automobile Dealers Association (NADA) found about 25,000 deals not yet approved by NHTSA, or about 13 trades per store. With 23,005 dealers asking to be part of the program, auto dealers may have already arranged the sale of more than the 250,000 vehicles that federal officials expected the plan to generate. That means an extra quarter million vehicles will be sold this year — potentially taking the U.S. annual sales rate above ten million units, a key metric in sustainability of the U.S. automakers. Well, as long as they sold some cars off those trade-ins.