Cash for Clunkers Program: Auto dealers advised to avoid

CNNMoney are advising that members of the National Automobile Dealers Association (NADA) are being advised to not close any more deals until details on the Cash for Clunkers schemes future is clearer, this comes despite Obama promise that any deals made over the weekend will be honored.

A spokesperson for NADA said in an email “Regarding auto sales this weekend, one possible alternative is for dealers to take deposits in lieu of consummated sales with an eye toward legislative success next week,” this follows the announcement that $2 billion more had been allocated for Cash for Clunkers, however until the money has been settled the NADA say dealers should proceed with caution.

The popularity of the Cash for Clunkers scheme has been greater then a lot of experts initially believed, however until this increased budget becomes available many dealers will have to hold back. Check out CNNMoney for full details.