5 Ways Cash for Clunkers Has Changed Car Buying

One of the most surprisingly successful government efforts to stimulate the modern auto industry is coming to an end -- and much sooner than expected.

August 22, 2009; Aleksandra Todorova writing for SMART MONEY reported that The Car Allowance Rebate System, better known as Cash for Clunkers, is scheduled to end on Monday, Aug. 24 at 8 p.m. After doing “an extensive amount of analysis on the amount of deals already locked and pending in the system,” the government chose to not fund a second extension to the program, the Department of Transportation said.

Even as dealers throughout the country voiced concern over the delays in processing – as of Aug. 20, DOT had processed 170,000 applications, or just under 40% of those submitted, and paid $145 million to dealers – they would be hard pressed to deny that the Clunkers program has provided the energy shot the auto industry so desperately needed.

What happens next? If you’re planning to buy a new (or used) car soon, you’ll find your experience may be quite different from that before the Cash for Clunkers program began. Here are five changes to expect:

CLICK HERE for Complete Article