Used cars in New York may be better bet after CARS program non-payment

Roughly 200 new car dealerships in the New York metropolitan area have stopped participating in the Cash for Clunkers program, which may make used cars in New York a more viable option for buyers looking for affordable options.

The initiative requires that dealers pay customers for turning in less fuel efficient vehicles and wait for the government to pay them back, a process that has only happened for roughly 2 percent of purchases that use the program, reported the Associated Press.

It had originally been seen as a boon for the dealers as it drove sales, but sporadic cash flow has left many with funding problems caused by the lack of reimbursement, noted the wire service.

The Greater New York Automotive Dealers Association had previously been supportive of the initiative, with Mark Schienberg advising prospective buyers to “go into the [showroom] and make the best deal you can, regardless of the government rebate,” according to the New York Times.

Doing research and negotiating may now help those who could turn to used cars in New York because of price constraints.