The Paris News

Paris’ four new car dealerships report a definite upswing in business since the Car Allowance Rebate System (CARS), colloquially known as “cash for clunkers,” began in late July.

But for how long motorists will be able to cash in on the rebate program for older, less fuel efficient vehicles, remains to be seen. Owners must have possessed a vehicle for at least one year and the vehicle must get no more than 18 miles to a gallon of gasoline to qualify.

The $1 billion appropriated by Congress for the National Highway Transportation Safety Agency program was exhausted by July 30, well before the anticipated end date of Nov. 1. Government and industry estimates agree about 250,000 vehicles were sold under the program in less than a week.

On Friday, the U.S. House of Representatives appropriated another $2 billion for the program and the Senate is due to vote the extension during the first week of August. The Obama administration has thrown its support behind the program aimed at removing at least 750,000 older, less efficient cars from the roadways.

Toyota of Paris owner Jerry Bawcum said Friday his dealership has blown the engines on 22 vehicles. Cars taken in for the $3,500 to $4,500 rebate must be salvaged.

“It’s certainly stimulating the economy,” Bawcum said. “Wrecking yards like it and tax renditions in Lamar County will certainly go up.”

But Bawcum said he fears a downside.

“It’s going to affect the low end of the used car market,” he said. There will be fewer low cost vehicles available, which could drive costs up.

Bill Owens at Hodge Motor Company said he plans to keep dealing with rebates until he receives official word the program is suspended.

“We’ve been really busy so far,” Owens said. The manager explained his mechanics put liquid glass in motors of cars taken in to make the motors freeze. Dealerships then call authorized wrecking companies to pick up cars for salvage.

“The program has been fabulous for us so far,” Jeff Jones at Paris Chevrolet/Cadillac said. “But I’m a little concerned about being reimbursed because at $3,500 to $4,500 a car the tab runs up quickly.”

When word came the program might be suspended at midnight Thursday, Jones said he was at the dealership at 11 p.m. trying to process claims using an extremely slow federal government computer system. The owner said he was encouraged Friday that more money is likely to be added to the program.

Roger Ballard with Paris Ford Lincoln Mercury agreed business has been good.

“We have had more traffic,” Ballard said. “We will stay with the program until the government says to stop.”

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