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Updated: 12:37 p.m. Wednesday, Aug. 5, 2009 | Posted: 12:36 p.m. Wednesday, Aug. 5, 2009

Some local car dealers suspend 'clunker' deals until Senate acts

By Thomas Gnau

Staff Writer

Some Dayton-area dealers have temporarily suspended the “cash for clunkers” program until the U.S. Senate approves additional money for the program.

Among them are the three Hidy family stores, Hidy Honda, Hidy Ford and Hidy Hyundai, said Joe Hidy, who also serves as board president of the Dayton Area Automobile Dealers Association.

As of Wednesday morning, Aug. 5, the Hidy stores had submitted about 45 to 50 proposed deals to the program, which rebates up to $4,500 to buyers who trade in qualified older, inefficient vehicles for newer efficient ones.

“They (the federal government) have not approved or rejected any of them,” Hidy said.

That alone gives him pause.

“The cash needs to flow to the dealership,” Hidy said. “It’s a little unnerving.”

He said other dealers are temporarily suspending the program, as well.

Among them is Dave Arbogast, of Dave Arbogast Buick Pontiac GMC in Troy. He says the program has worked as it was intended, but he, too, wants to see the Senate take new funding action.

“I’m at the lowest inventory I’ve seen in my 15 years,” Arbogast said. That will mean new production at the automakers’ assembly sites, he said.

The federal government had declared the “Car Allowance Rebate System” all but drained late last week, but Senate Majority Leader Harry Reid said Tuesday he has the votes to inject another $2 billion into the program in coming days. Sen. Mitch McConnell, who leads Republicans in the Senate, has said his party will not block a vote.

Early Wednesday, the CARS Web site said the rebates program is still operating.

Hidy and Arbogast each said the program has gotten consumers back on showroom floors. Hidy added that his stores will resume the program as soon as the Senate funds it. Late last week, the House voted to push $2 billion to the program.

“If the program is approved for more money, we’re going to be right back into it,” Hidy said.

“I don’t believe there will be a downside to this,” Arbogast said.

Like other dealers, Arbogast has misgivings about the government’s CARS computer system, saying some proposed trades have been rejected for “technical reasons.” When that happens, he said, rejected deals go “to the back of the line.”

Said Arbogast, “The system is so inept.”

The Chicago Tribute reported that Michigan has seen the most sales through the program as of Tuesday with $34.4 million worth of vouchers, and Ohio coming in second at $29.3 million.

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.

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