'Cash for Clunkers' Gets $2B Vote from House

by Lynn B. Johnson on August 1, 2009

gas-guzzlerThe U.S. House of Representatives voted 316-109 Friday to augment the Car Allowance Rebate System (CARS) program by $2 billion. The additional funding will be transfered from energy stimulus funds.

Fears that the “Cash-for-Clunkers” program would die within days of its initial approval spurred the House to call a vote, an action that came within hours of Transportation Secretary Ray LaHood’s report that the program would soon run out of funding.

Allegedly, gas-guzzler trade ins gobbled nearly $1B in just one week, according to the Wall Street Journal. President Barack Obama heralded the program as one that has “succeeded well beyond our expectations.”

The Senate is expected to take up the call next week, although there is concern that some Senators are likely to push for stronger environmental targets before approving any funding extensions, which effectively will change the cash for clunkers eligility criteria.

Not everyone is happy with the CARS program, despite its overwhelming popularity. Some consumers are chafing at the changes in the original m.p.g. statistics, which limited the number of cars originally eligible for trade-in rebates.

Also, according to the National Automotive Dealers Association (NADA), car dealers are experiencing “extraordinary difficulties… registering for the program and filing reimbursement claims.”

No matter how people feel about it, one thing is certain: “Any doubt that the CARS program would jump-start auto sales is completely erased,” said Greg Martin, a GM spokesman.

Discussion

jhenry
Yes, Your vehicle must be less than 25 years old on the trade-in date

Jhenry
Blogger
www.cashforclunkersfacts.info
http://www.cashforclunkersfacts.info
August 10 at 02:14 am
Money Man
Say what you will, this is a good thing. It is better than just giving cash to people. I used the site WWW.SLICKBUDGET.COM/CASH4CLUNKERS.HTML to get an informed decision on what car to get and it saved me thousands. I ended up getting a Nissan Ultima Hybrid. This saved me $4500 for the clunkers + $2400 in hybrid tax credit + $2000 from the dealer + $3500 from Nissan! That is $12400 off the sticker of $27300 to get me a mid size hybrid that gets 35 MPG for $14900!!! Are you kidding me? AND
August 9 at 23:50 pm
RM
Typical government program... cash-for-clunkers is already costing THREE TIMES it's original estimate. Imagine the DISASTER if these politicians attempt healthcare reform.
August 2 at 19:20 pm

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