WASHINGTON -- The Obama administration is considering whether to allow dealers to sell cars under the cash-for-clunkers program that are ordered from manufacturers rather than just those already in dealers stock.
U.S. Reps. Candice Miller and Fred Upton, as well as the National Automobile Dealers Association, have asked the Transportation Department to modify its rules to help dealers cope with dwindling inventory.
The inventories of some automakers and dealers have been so depleted that the programs extension may be limited in its effectiveness, Miller and Upton, both Michigan Republicans, said in an Aug. 10 letter.
Under their proposal, dealers could get federal rebates even if they have to order new cars sold under the program from the manufacturer.
We are reviewing the proposal, Karen Aldana, a Transportation Department spokeswoman, said today.
Preliminary inventory reports for Aug. 1 indicate unsold vehicles fell below 2 million units, the lowest figure since at least 1992.