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Rebate program spurs sales: El Paso dealers say it's going 'great'
July 29, 2009

Auto dealers say they are seeing more customers in their showrooms and selling more cars in the first week of the government rebate program intended to replace gas-hungry, heavy-polluting cars and trucks with greener vehicles.

Written by Ed Shugert, El Paso Times

Cash_for_clunkers

A "Cash for Clunkers" sign hangs in front of a Subaru car dealership in Oregon City, Ore. Car and truck buyers looking to ditch their gas guzzlers are flocking to dealerships to take advantage of the government program. (Rick Bowmer / Associated Press)

EL PASO -- Auto dealers say they are seeing more customers in their showrooms and selling more cars in the first week of the government rebate program intended to replace gas-hungry, heavy-polluting cars and trucks with greener vehicles.

Oscar Leeser, dealer principal for Hyundai of El Paso, said his dealership sold 72 new cars Friday, Saturday and Monday in the first three days of the program, officially called the Cash Allowance Rebate System, or CARS, and unofficially called "cash for clunkers."

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Thirty-five of the sales qualified under the CARS program, he said.

"It's been unbelievable for us," said Leeser, who added the dealership sold 41 cars on the same three days the week before the program began.

John Luciano, general manager of Dick Poe Toyota Scion, said the dealership had sold 16 new vehicles under the program through Tuesday afternoon. The Dick Poe Family of Dealerships, which also include Chrysler, Jeep and Dodge, had about 45 sales that qualified for the rebate program.

"It's been great, no question," Luciano said "If you fall under the parameters of it, it's a sweet program."

Qualifying trade-ins must be 1984 or later models that average 18 miles per gallon or less. New cars must get mileage at least 4 mpg better.

The rebates ranged from $3,500 to $4,500 per vehicle.

The biggest problem for dealers may be that it works so well that the $1 billion set aside by the government will run out long before CARS is scheduled to end in November.

"We're all in a hurry," Luciano said.

Leeser said he has seen estimates that the rebates would fund about 220,000 new-vehicle sales, or about 12.5 sales per dealership nationally.

"I personally don't believe it will last more than 30 days," Leeser said. "Hopefully, President Obama will find some more funds and continue the program."

Ed Shugert may be reached at eshugert@elpasotimes.com; 546-6352.

 

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