After hearing from Transportation Secretary Ray LaHood that the popular ‘Cash for Clunkers’ program was running out of money, Congress rushed to authorize a $2 billion injection that would keep the program afloat as more and more Americans take advantage of the service. Under the ‘Cash for Clunkers’ program, owners of inefficient automobiles can trade them in for a $4,500 subsidy if they purchase a new vehicle that has much better gas mileage.
President Barack Obama was heartened by the news, stating that the program had “succeeded well beyond our expectations. The program not only gives people the incentive to reduce their own emissions, but it bolsters the economy, and auto sales to be more specific. While the bill passed the House of Representatives by a 316-109 margin, it still faces the vote, to come next week, from the Senate. It is expected to pass there as well.
As of today, the number of cars purchased under this program is unclear, however estimates range from 100,000 to 240,000. Some automotive dealerships are hazy on the actual timeframe of the program, and have been a bit gun shy to continue offering the deal, as final payment of the subsidy will go to the dealers. However with new funding moving through Congress, the dealers should be able to resume the exchange with little hesitation.
