KAHULUI - The Obama administration's Cash for Clunkers junk car buyback program kicked off Friday, and local auto dealers said it couldn't come at a better time.

Nearly all of the new car dealers contacted by The Maui News on Friday said that they've received a lot of interest in the program all week and even made some sales already.

The Cash for Clunkers program's intent is twofold: get old gas guzzlers off the road and defibrillate the nation's supine auto industry. In order to qualify for the $4,500 federal credit to buy a new car, the aged vehicle must get 18 miles per gallon or less and been built in 1984 or later.

In order to dodge scofflaws, the program also requires that the vehicle be in working condition and have current registration as well as insurance for the past year.

The $1 billion program is expected to generate 200,000 to 280,000 new car sales. It actually went into effect July 1, but dealerships were waiting until this week for the government to release 100 pages of program guidelines.

News reports across the nation said sales were brisk Friday and the program's Web site, cars.gov, was jammed for up to two hours as potential customers signed up for the deal. People interested in participating in the program can determine whether their car meets fuel economy requirements at fueleconomy.gov.

Industry experts predicted up to 100,000 car sales alone this weekend; and if Congress doesn't pump more cash into the program, it could run out of money in a month.

On Maui, general managers at Mercedes-Benz, Honda, Subaru, Nissan, Chevy and Ford all said that they've received calls about the program and even made some sales.

"It is a good idea," said Island Auto Center general sales manager Jim Wheeler.

Maybe the program can help balance out some of the negative news released this week about Maui auto sales, some managers speculated. The sale of new cars and light trucks on the Valley Isle is down 46 percent in the first six months of 2009 compared to the same time period a year ago.

"I believe it will benefit the sales for new cars," said Wheeler, who added that there is still some confusion about the program among consumers.

Doug Goodrow, who is general manager of both Jim Falk Motors of Maui and Valley Isle Motors, said that he and his people are really excited about Cash for Clunkers.

"It's really a nice deal for the dealership and buyers; and it's pretty good for the island," Goodrow said. "We can get some of the older cars off the island, maybe before they end up dumped in a sugar cane field."

Some vehicle manufacturers are already offering significant rebates, so it's the best time to buy in years, Goodrow said. For instance, with Cash for Clunkers and the standard $5,000 Ford rebate, a new Ranger truck is basically half price, he said.

The Cash for Clunkers credit can knock a couple hundred dollars off the monthly payment of most cars, Goodrow said.

The Mercedes-Benz of Maui dealership had its grand opening Friday evening, and general manager Michael Burden said within minutes someone asked him about the program.

One dealership manager, who asked not to be identified, said that the program has some problems that need clarification. She worried about some of the hoops people have to jump through to prove registration and insurance and disagreed with the rule that only allows someone to do it with one vehicle.

And what if the government runs out of money before the dealership is able to send in its paperwork and get reimbursed, she asked.

Most of the auto dealers were much more optimistic and said they were happy to handle all the paperwork required of the buyer.

"I think it's absolutely just great," Burden said.

* Chris Hamilton can be reached at chamilton@mauinews.com.