UPDATE 7/31: The House just approved $2 billion in additional funding for the Cash or Clunkers Program. Will the Senate Save it?
Original Post:
I was about to do a lengthy post on the Cash for Clunkers program when I see that FoxNews is reporting that it is dead.
“Congressional officials say the government plans to suspend the popular “cash for clunkers” program amid concerns it could quickly use up the $1 billion in rebates for new car purchases”
“Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns of large backlogs in the system, prompting the suspension.”
The program, officially named the Car Allowance Rebate System, was set to end after the government had burned through $1 billion in rebates or November 1st – whichever came first. The plan allowed for rebates of up to $4,500 for trading in older vehicles for more fuel efficient ones. It only took an estimated 6 days to burn through the cash.
I will save my detailed post on the program, and post it if and when they inject more cash into it. It doesn’t take a lot of persuasion to convince President Obama and Congress to throw a few billion dollars here or there, so maybe they will do something to extend it. For now, it appears halted at midnight tonight. I do applaud them for taking the measures to “halt” the program and keep it within its specified budget. I will stop short of saying it should have been budgeted for in the first place.