Auto Shipping Blog

In recent months, our nations Automotive industry has taken a turn for the worse.
With automotive giants Chrysler and General Motors being bought out by international automotive
companies as well as the United States Government, it’s safe to say that this is the worse automotive
depression in recent history. This is partially the reason that the CARS program was implemented
by both the Administration and the U.S. House. Known also as the Car Allowance Rebate System, CARS
was first signed into effect on July 24th, 2009. Upon its commencement, the program
was aimed to try and help increase new-vehicle purchases, something which would help revive struggling
automakers as well as dealerships.

The original budget which was expected to last through November first, 2009, was $1
Billion. Sure enough, roughly three months ahead of schedule, these funds expired, sending certain
individuals into a frenzy. Posed with the threat of the program ending at midnight sometime last week,
some dealership owners, such as Tamara Darvish who owns 18 dealerships in the Washington Area, have
reported keeping their dealerships open up until three A.M., to assist those customers
interested in getting those last minute trade-ins accomplished. Luckily for these people, the U.S.
House has recently voted to extend the funding for this program by an extra $2 Billion. This
figure is expected to last through the beginning of November, but if spending continues to Boom,
as it recently has, this figure could run out much sooner than that.

This extra $2 Billion will finance roughly 750,000 trade-ins, offering a maximum rebate
of $4,500 off. President Obama has stated that he was “very pleased with the progress the House
has made.” Jeremy Anwyl, of the automotive web site Edmunds.com attributes the increase in sales
by claiming, “It’s the rage, and it’s bringing would-be buyers out of the woodwork,” most of
which have been dangling over the fence for more than a year now. One statistic released by
the United States Government which demonstrates success on various levels includes, “On average,
the vehicles being purchased are 61 Percent more fuel-efficient than the ones being traded in.”
This shows that while sales are increasing, this program also promotes eco-friendly standards.

There are those individuals such as Arizona’s Republican Representative Jeff Flake who
are less than thrilled with the funding of such programs. In one interview he was quoted as
saying that the program is being administered poorly and ends up choosing economic winners and
losers. He poses the question, “Why are we deciding to aid this sector and not another?”
This is perhaps a question that requires further inquiry, although for the time being, the American
public is showing it’s support as it dried up the programs funds three months earlier than anticipated.