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The Federal Cash for Clunkers incentive burned through $1 billion in a week as consumers rushed to trade in gas guzzlers for more efficient models, spurring Congress to add another $2 billion to the program. But many consumers hoping for the $4,500 credit discovered that their older cars did not quality for the program, or that they couldn't afford to purchase a brand new car, even with the credit. Now, a group of approximately 50 large auto dealers have come up with their own Clunkers-style plan that is open to a larger number of consumers, and should be easier on the salvage and used vehicle markets. The Automotive Stimulus Plan (www.automtoivestimulus.org) provides up to $4,500 in incentives for customers who are buying more fuel-efficient vehicles, but consumers are able to buy used vehicles with the credit, and their trade-ins aren't scrapped. Under the federal program, dealers were required to scrap the clunkers permanently. "We thought this was a good opportunity to broaden the reach of the program," says Brian Benstock, vice president and general manager of Paragon Honda & Acura in Queens, N.Y. "There are quite few customers who wanted to take advantage of Cash for Clunkers, but didn't qualify under the government rules." "Only about ten percent of customer qualified for Clunkers," adds John Malishenko, operations manager at Germain Automotive, which has dealerships in Florida, Arizona, Ohio and Arkansas. "We liked the merits of the program, so we looked for a way to expand eligibility but stay consistent with the things that the customers liked about Clunkers." Under the dealer program, which was scheduled to run through the fall, customers can purchase a new or pre-owned vehicle with a minimum of 2mpg of improved fuel economy. The vehicles had be a 2006 model or older; operable; and owned and registered for at least six months. The other significant difference is that customers can purchase a used vehicle, something not allowed under the government program. The dealers hope the new program will help them continue the sales momentum they gained with Cash for Clunkers. "This isn't going to be as big as the government program, but we feel we're going to get an increase in foot traffic and Web traffic," says Scott Gruwell, sales director at Courtesy Chevrolet in California and Arizona.
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