Local car sales rise in July

New vehicles registered in Hamilton County in July climbed to the highest level since the credit crunch hit nearly a year ago.

"We saw new car sales do better than expected," said Ken Hunt, owner of Hunt Nissan. "Cash for clunkers helped measurably."

New vehicles titled, which translates closely into sales, hit 749 in the month, the best showing since last September, according to the Hamilton County Clerk's Office.

Also, 3,537 used cars and trucks were registered in the county in July -- the highest mark in a year, figures indicate.

New vehicles registered in Hamilton County in July were up 11.9 percent over June. However, figures were still way off levels from a year ago. July's total was down 48.9 percent from the same period in 2008.

Mr. Hunt said he's for further funding for cash for clunkers by the U.S. Senate, which is expected to take up a measure to provide another $2 billion this week.

But, Mr. Hunt said he wants the money to come from existing stimulus spending.

"I'm for it as long as it doesn't spend additional," he said. "If it's a part of the original package, that's fine."

Officially called the Car Allowance Rebate System, or CARS, the program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle, in exchange for scrapping their old vehicle.

Not everyone is happy with injecting more money into CARS, which exhausted its initial $1 billion earmark in about a week's time. Some scrap parts dealers said destroying the vehicles is taking a lot of cars and parts off the road.

Jerry Dickson of Chattanooga Valley Used Cars and Parts said the program's rules prohibit the sale of the cars to businesses such as his.

"They want to take all these cars off the road, and now they'll never show up again," he said.

Benny Staton of Don's Auto Salvage said the regulations will take a lot of cars and parts off highways.

"It's going to hurt," he said, adding that his businesses shouldn't be affected.

Bob Dinneen, president and chief executive of the Renewable Fuels Association, said he supports ideas like cash for clunkers, but is concerned to see it funded by depleting the renewable energy loan guarantee program.

"For the U.S. long term auto and fuel needs, it seems counterproductive to limit the renewable fuels industry," he said in a statement.

Ted Mader, general manager of Edd Kirby's Adventure Chevrolet in Dalton, Ga., said cash for clunkers should continue.

"Customers are happy," he said.