Initial money runs out for clunkers

LAFAYETTE, Ind. (WLFI) - Less than a week into cash for clunkers, the bill is bankrupt. The House of Representatives has approved $2 billion in additional funding, but the Senate will not vote on this issue until Monday.

Some local dealers were working until 2:00 A.M. Friday morning on last minute clunker deals. Customers were trying to beat the deadline to cash in on their clunker for a $3,500 to $4,500 rebate on a new car.

Dealers seem confident the federal government will reimburse them for sales made throughout this weekend.

"We'll go ahead and do the deal because I think they're gonna back it up. Until we hear from the government that it is absolutely over, we'll continue to do it," said Mike Alsop.

"As of last night we were gonna go ahead and work deals until we absolutely heard they weren't gonna do it anymore," said Tony Eichholz.

Lafayette auto dealers are putting a lot of faith in the government. Bob Rohrman General Manager Tony Eichholz said he believes more money is coming, which is why more deals are still being made.

"The White House has made it very clear that the dealers nor the customers are going to be left holding the bag in regards to this extra money," said Eichholz.

"They're talking like they're gonna go back and grab another couple billion dollars, but I don't know," said Alsop. "There's a lot of people that are, again, concerned. But I think it would be a negative if they went back and I think it would turn this very positive thing into a very negative thing rather quickly."

Mike Raisor Ford General manager Mike Alsop said some customers are worrying about what the now bankrupt fund means for them.

"They're confused. The ones that have come in and done the deal are wondering if they're gonna get charged back," he said.

"It was a little worrying for a while there," said Paul Crook.

Cash for Clunkers participant Crook signed his paperwork Wednesday and wanted to make sure he won't owe money. After picking up his new Beetle, Crook said he's confident the federal government will approve more money for the bill.

"I suspect they will put more money into the system because obviously a lot of people are taking advantage. So, it's really going to stimulate the economy," said Crook.

Because customers have confidence the bill will continue, it looks as though the program will remain successful.

"We told one of our neighbors at home and they quickly got out and took advantage of the program as well," said Crook.

Lafayette dealers such as Bob Rohrman, Mike Raisor and Twin City Dodge all said they will participate in the program until that money runs out.