Tom Metzger planned on buying a new car this year, but not so soon. That is until the federal government announced "Cash for Clunkers” and the $4500 incentive.
"It was on its last legs - 11 years old, 126,000 miles, blowing smoke out the tail pipe, leaking oil, broken headlight, windshield cracked. It was time for it to go," said Metzger.
So Metzger and his wife bought a 2009 Ford Focus. Not only did he get the government rebate, but he's saving money on the gas tank.
"On the highway, I'm averaging over 37. Whereas with the other vehicle, 20 was about tops," said Metzger.
Metzger bought one of 208 cars sold at Bob Bell Ford in Glen Burnie during the five-week program this summer. It was a big success then, but J.P. Bishop, the president, says it hurt business moving forward.
"We are a month-to-month business, so we're suffering now," said Bishop.
The clunkers were torn up and taken to the junk yard, what bishop considers a waste.
"Someone brings in their 10-year-old vehicle and we give them $4500 for it and then we have to destroy the engine and we get the car crushed. That's the type of vehicle that maybe some 17-year-old kid would take," said Bishop.
Before the clunker program began, there were about 500 cars on the lot at Bob Bell. Five weeks later, they went down to about 100. But that low inventory caused them to lose out on sales.
“Even as we've replenished our lots, there still isn't a lot of traffic in terms of the customers coming in looking to buy new cars," said Bishop.
But the program brought in millions in just a short time. In the Baltimore region, Anne Arundel and Baltimore Counties took in the most, with Baltimore City, Harford and Howard Counties following behind. Still, the clunkers have caused business to stall.
In the weeks following the program, some auto dealers complained the rebate money was not being returned from the government. But the dealers we talked to say they have since been repaid.
