By Amanda Kramer

The Times-Georgian

The popular “Cash for Clunkers” government incentive program almost ran out of gas Friday.

With barely enough funding to get through the weekend, the U.S. House of Representatives approved an additional $2 billion for the program, designed to remove gas-guzzling older vehicles from the streets while also giving a jolt to the struggling economy.

Auto dealers in Carroll County started noticing the first signs of life in their showrooms in many months, thanks largely to the Clunkers program, as many consumers have been holding off on large purchases.

The program kicked off across the nation on Monday, providing sizable rebate incentives for buyers to trade in their “clunkers” for new, more fuel-efficient models.

The program proved so popular that the $1 billion fund set up by Congress had nearly run dry by Friday. The House voted 316-109 to re-up the program with a fresh infusion of $2 billion, and the Senate agreed to vote Monday on the same measure, assuring the continuation of the program.

Zack Bell, sales manager at Mike Bell Chevrolet in Carrollton, said within two days the dealership made about a half-dozen car deals with the new incentive.

“It’s helped the industry already,” Bell said. “We are real blessed to have this program at this time. I believe it has already brought in customers that might not have traded in their ‘clunkers,’ so-to-speak, to get a fuel-efficient car. This is helping the environment by helping to recycle the cars and helping the customers and the industry.”

In the first three days, Pioneer Ford Mercury in Bremen consummated 12 deals through the program, said sales manager Gary Farmer.

“We’re offering it through midnight (Saturday),” he said, almost dreading the prospect of having to deal with the government on a continuing basis now that Congress appears poised to inject new funds.

“You can’t get your money from the government, their computers are shutting down, it’s just the biggest cluster,” Farmer said. “But people who deal with the government say it’s to be expected.”

Car buyers under the program receive federal subsidies of $3,500 to $4,500, money that is supposed to be reimbursed to the dealers within seven to 10 days.

Farmer said his “Clunker” customers are buying Ford Fusions, Ford Focuses and small pickups like the F-150 and the Ranger. He said none of the 12 buyers he’s dealt with through the program would have otherwise bought a vehicle at this time. “In that sense it’s good, but if we can’t get our money, we’ve got 12 vehicles at $3500 to $4500 each, that’s $54,000,” he said.

According to Ford.com, to be eligible for the program, trade-in vehicles must have been manufactured less than 25 years ago, have a combined city/highway fuel economy of 18 miles per gallon or less, be in driveable condition and have been insured and registered to the same driver for at least a year before the trade in. The rebate is only eligible for 2009 model vehicle purchases. The rebates range from $3,500 to $4,500.

Bob Bagby, assistant sales manager of Richard Haney Ford in Carrollton, said buyers will receive a $3,500 rebate for trade-ins that meet the criteria if the customer chooses to buy a new model that is at least 4 miles per gallon more efficient and a $4,500 rebate if the new vehicle is 10 miles per gallon more fuel efficient.

“We’ve had a good bit of interest from people within the past few days, and I believe this program will be very positive,” he said. “I think a lot of people with older cars that might only have a value of $400 or $500 will benefit greatly when they have an opportunity to get a rebate of several thousand dollars and a more fuel-efficient car. The main objective is to get less fuel-efficient cars off the roads and help the whole world economy.”

Bagby said some customers have traded in older sport utility vehicles that have poor gas mileage and have driven off the lot in a 2009 Ford Focus that can travel 30-35 miles on a single gallon of gas.

“We’ve really seen a lot of people use the program here,” said David Nix, general manager at Scott Evans Chrysler Plymouth Dodge Jeep in Carrollton. “We have a list of people that are interested.”

Nix said eight customers in the first couple of days of the program had parted ways with older model vehicles such as a 1998 Ford F-250 and several 1980s model vans that had odometers reading 300,000-plus to purchase new vehicles such as the Jeep Compass, Chrysler PT Cruiser or Dodge Caliber that has a fuel economy between 27 and 30 miles per a gallon.

“It’s picked up sales,” Nix said. “This has been the best new car sales month in a long time. This program benefits the customers, car sales industry and environment, because it is taking the gas guzzlers off the road.”

The Cash for Clunkers offer was originally approved through Nov. 1 or until the $1 billion the federal government set aside had been spent. Most industry analysts were estimating that the first $1 billion would last at least until mid-August. The immediate popularity of the program surprised some, but was welcomed by dealers.

“This will really help boost sales in the next few months,” Bell said. “We’ve already seen an increase in traffic. It’s also great for the environment. We’ve had people trade in SUVs, pickups and station wagons to leave in something like a Chevrolet Cobalt that gets 44 miles per gallon. This is really helping people out.”

Farmer said customers have been stopping by the dealership since the program began last weekend to trade in vehicles such as pickups and large SUVs that are notorious for low fuel efficiency. Hybrid models, such as the Hybrid Fusion, could more than double a former “clunker’s” fuel savings with its approximately 55 miles per gallon efficiency rating.

“This program has been working out real well,” Farmer said. “If business keeps up like it has been, we will be selling out of cars quickly.”

Bell said other incentives offered by dealerships — including supplier pricing, rebates and zero percent financing — can equal deep deals and savings for those looking to purchase a new vehicle.

He said all trade-ins received through the rebate program are recycled and will never be placed for resale to drive again.

“Everyone is talking about going green and helping the environment,” he said. “This will help get people into vehicles with great gas mileage. Once it is traded in, it is taken off the road.”

SLM Recycling Owner Patrick Denney said that once a vehicle is recycled, it can be remade into a variety of products — even another car. He said he was not expecting the automobile rebate program to greatly impact his business since vehicles often find their way to be recycled after they have been sold for parts.

“There are a lot of uses to reuse the metal,” he said. “Basically anything made out of steel can be made with the recycled metal.”