'Cash for Clunkers' Driving Cars off Dealerships' Lots

By Dave Jordan, NEWS 9

OKLAHOMA CITY - Car dealerships all over the country are bracing for a spike in sales thanks to the "Cash for Clunkers" program. However, some car dealers said they fear the program could end up being a victim of its own success.

The Federal Government is offering a credit of up $4,500 off the purchase of a fuel efficient and environmentally sound car or truck in exchange for old cars.

More about the government's Cash for Clunkers program.

"We have been as busy as we've ever been," said Brad McRae, Westpointe Chrysler in Yukon. "We are going to run out of vehicles. I can tell you right now we are going to sell out."

Part of the reason is the production line in Detroit has not been up and running. Chrysler furloughed employees earlier this year while working to emerge from bankruptcy.

"They haven't produced cars in four months, so inventory levels are real light," McRae said.

McRae said he was already selling cars on the lot at a brisk pace before the Cash for Clunkers program was launched. He said as the automakers struggled financially, many drivers capitalized on huge incentives that were offered to move cars and trucks off the lots.

Chrysler is slated to begin producing cars by August 1st, but there's no word if that new product will reach dealerships before their existing inventory runs out.

The Cash for Clunkers program ends either November 1st or when the $1 billion the government used to fund the program, runs out.

More on NEWS 9:

• Cash for Clunkers Information