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Posted: Tuesday, 25 August 2009 6:16AM
Coming soon: 'Cash for Appliances'
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CHICAGO (CBS) ― More than 600,000 people cashed in on the Cash for Clunkers program. Now, there's word that an old fridge or dishwasher may bring you some loot. Coming this fall: Cash for Appliances. The government plans to roll out another rebate program much like the clunkers. CBS 2's Mike Puccinelli reports on how the energy-efficient plan will work.
First, you're not going to actually trade in your old dishwasher, water heater or fridge. So in that way it's different from the wildly successful Cash for Clunkers. But it's similar in that it aims to stimulate a lagging sector of the economy and clean up the environment at the same time.
At Cole's Appliance & Furniture Co. on north Lincoln Avenue, they've been selling stoves and refrigerators since just after World War II. And the post war baby boom soon translated into boom time in the appliance world.
"People would line up for an hour before the sale would start," said Barry Krasney, Cole's Appliance & Furniture Co.
But that was then. This is now. In more than an hour, only one customer actually walked in the front door of Cole's.
"It's definitely a concern when you don't have customers coming in on a regular basis, which in the last couple of years, we have seen that drop off," Krasney said.
According to the Association of Home Appliance Manufacturers, shipments of washers, dryers, ovens and refrigerators were down 10 percent in 2008. In the first six months of 2009, they're down 15 percent.
And out in front of the business' venerable sign, it's not hard to see why.
"I am not in the market for any new appliances at this time," said Amanda Haljun.
Larry Bennett says he's not in the market for new appliances either.
Dan Semenak says he wouldn't be in the market for a new appliance even with the right incentive.
"I don't think so," Semenak said.
But the U.S. government hopes to change that. It's why $300 million is being offered to get Americans to junk old, inefficient appliances for Energy Star-rated new ones; $50 to $200 rebates will be offered to try and do for the appliance business what Cash for Clunkers did for cars.
"I think it's a terrific idea. I think that we gave all the bankers all their money," said Donna Weichselbaum. "Why shouldn't the citizens get it?"
And Krasney says it might be just what the struggling appliance sector needs.
"If the government does it properly, I think it could help us tremendously," Krasney said.
And that would mean getting people like Justine Washington back into showrooms to possibly furnish her dream kitchen.
Right now, Washington says, "I can't afford it."
But she says with the right incentives from the government, she just may invest in all that stainless steel and granite.
States that sign on to the program will have to provide plans showing how they will recycle discarded appliances. Everyone with an old appliance is eligible to apply for the rebate.
The first money will likely be available at the beginning of November. And it's predicted that it will be all gone by December.
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