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Turns out there were quite a few clunkers on American roads.

The so-called “Cash for Clunkers” federal stimulus program apparently burned through a billion dollars in less than a week, leading legislators to take steps to give it a cash infusion.

The speed of the fund’s disappearance surprised auto dealers.

“I said, 'No, that can’t be,’” said Owen Bertschi , president of Crescent Ford in High Point. “I’m stunned.”

But in a day that saw a flurry of quick activity in Washington, the program went from nearly bankrupt to on the verge of receiving a massive boost.

The House voted overwhelmingly Friday to rush $2 billion into the program, heeding calls from consumers eager to take advantage of thousands of dollars in trade-in incentives.

House members approved the measure 316-109 within hours of learning from Transportation Secretary Ray LaHood that the program was running out of money.

President Barack Obama said he was encouraged by the House action to keep alive a program that had “succeeded well beyond our expectations.”

Senate action will likely come next week.

That news cheered dealers, who said the program has stirred interest among buyers.

“A ton,” said Tim Gunter , general sales manager for Crown Nissan in Greensboro. “We’re very excited.”

The program aims to spur demand at dealerships while taking gas-guzzling clunkers — eligible vehicles must be in working order and average no more than 18 miles a gallon — off the road and replacing them with more fuel-efficient cars.

Consumers can receive credits of up to $4,500 toward a lease or purchase in exchange for bringing in the clunkers, which ultimately land in the scrap yard.

Dealers, who front the money and then get reimbursed by the federal government, have expressed concerns about what happens when the money runs out.

“It’s a lot of money to be on the hook for,” Bertschi said.

With that in mind, his dealership planned to continue making deals under the program Friday, but to wait and see after that.
The program has provided a boost in more than one way, he said. Some customers haven’t been eligible but have made a purchase anyway.

“It’s definitely drawn a lot of traffic in the store,” Bertschi said. “The program itself has been generating a lot of deals.”

And after a tumultuous year in the auto industry, a sense of optimism is emerging.

“We see things developing very positively,” Bertschi said. “We believe the industry’s bottomed out.”

The Associated Press contributed to this report.

Contact Jason Hardin at 373-7021 or jason.hardin@news-record.com