'Cash for Clunkers'

This has to be one of the few consumer spending incentive programs coming from the US that really excities me. The best thing about this program is that it actually seems to be working, and not only that, it is actually supporting the auto industry which has been struggling recently. The Car Allowance Rebate System, provides credits up to $4,500 for the purchase of a new car when turning in an older vehicle to be scrapped. Lawmakers had expected the first $1 billion to generate roughly 250,000 vehicle sales and last until about Nov. 1. The Department of Transportation said more than 200,000 sales have come from the program, and this could not come at a better time for the auto industry. Additional funding for the program has been passed in the house and is now waiting for senate approval. I believe that this is something that will pass especially given the success of the program relative to other consumer spending stimulus programs. One interesting opportunity I see with all of this is Auto Nation ticker: NYSE:AN. This has been one company that has benefited from this incentive program, and has exposure to a wide variety of makes of cars. I am personally going long this stock, as it is well poised to benefit if the additional funding is passed for the Car Allowance rebate Program. This will be an interesting one to watch.
http://www.bloomberg.com/apps/news?pid=20601103&sid=a1HW9CtfwJkg