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Program a big boost for local dealers
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Times photo: Brenda Steurer Salesperson Linda Batty from Ruda Chevrolet-Toyota, touches up some advertising Tuesday to help bring customers to the dealership. Like other local dealerships, Ruda has benefited from the federal governments cash for clunkers program.
MONROE - City dealerships saw increased traffic last week as customers came in to take advantage of the federal government's "cash for clunkers" program.

"We don't have any Focuses or Fusions on our lot," said Chad Manor, general manager at Alphorn Ford-Lincoln-Mercury, "but we can get them from other dealerships if we need to. This has been fabulous for us. This is the best program I've seen."

Alphorn, Ruda Chevrolet-Toyota and Dearth Pontiac-Buick-Cadillac-GMC, have benefited from the program that pays customers up to $4,500 to trade in their old gas guzzlers for more fuel-efficient vehicles.

The Senate this week discussed extending the program. There was $1 billion set aside for the program and another $2 billion was expected to generate the sale of about 500,000 more vehicles, according to the Associated Press.

Manor said the program not only helped local dealers, but also helped customers.

"People feel good, they're more confident, when they get a new car," he said.

Bill Ruda, owner of Ruda Chevrolet-Toyota, also said the inventory at his dealership is low due to the popularity of the program.

"It got people thinking about getting a new car," he said. "It got them excited to shop for a new car."

Ruda said the program has been a positive thing for the economy and car dealerships.

"It's bringing people in," he said.

Bryan Rach, sales manager at Dearth, said the program brought more people to the dealerships than expected.

"It's generated a lot of interest in sales," he said.

The customers weren't buying on impulse, Manor said. They were people who saw they had a vehicle that qualified for the program and decided to get a new car.

With sales up in the short term due to the federal program, some may wonder if that means a slower fall and winter for automobile dealerships.

Manor doesn't think sales will drop off.

"I don't see people buying now who would have waited until later this year to purchase a vehicle," he said. "If people were moving their purchases ahead, then I'd be worried."

All of the vehicles traded in as part of the program are sold for salvage, but the engines have to be destroyed first.

Ruda said the oil is drained from the engine and then a chemical is added which will damage the engine beyond repair.

As the Senate decides the fate of the program, Ruda is hoping it continues.

According to the Associated press, car companies said the "clunkers" program was helping their bottom line. Ford said its sales rose 2.4 percent in July from the same month last year, its first year-over-year increase since November 2007, while Chrysler Group LLC posted a smaller year-over-year sales drop compared with recent months, helped by "clunkers" deals. Other automakers showed gains, giving ammunition to supporters of the car rebate program.