The government’s popular “cash for clunkers” program may be running out of money after only a matter of days as car shoppers flock to dealerships to take advantage of the rebates.
The White House said Thursday it was assessing its options amid concerns the $1 billion budget for rebates for new car sales may have been depleted. The program officially began last week and has been heavily publicized by automakers and dealers. I wrote about this Cash for Clunker program just the other day and the effect it will have on people who can’t or don’t want a new car, but want to buy a used transmission from a clunker to keep their clunker on the road.
Transportation Department officials called lawmakers earlier Thursday to alert them of plans to suspend the program as early as Friday. But a White House official said later the program had not been suspended and they were reviewing their options to keep the program funded.
Dubbed the Car Allowance Rebate System, or CARS, the program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle, in exchange for scrapping their old vehicle. Congress last month approved the plan to boost auto sales and remove some inefficient cars and trucks from the roads.
The program was scheduled to last through Nov. 1 or until the money ran out, but few predicted it would be depleted in days. Through late Wednesday, 22,782 vehicles had been purchased through CARS and nearly $96 million had been spent.
It suggested that with about 23,000 dealers taking part in the program, car dealers may already have surpassed the 250,000 vehicle sales funded by the $1 billion program.
The reports that the CARS program could be suspended created confusion among many dealers, who had showrooms filled with car shoppers looking to scrap their gas guzzlers
The clunkers program was set up to boost U.S. auto sales and help struggling automakers through the worst sales slump in more than a quarter-century. Sales for the first half of the year were down 35 percent from the same period in 2008, and analysts are predicting only a modest recovery during the second half of the year.
Lawmakers said they would try to find additional funding for the program, which under the legislation could grow to $4 billion for the funding of up to 1 million new car sales.
Good luck to the ‘Cash for Clunkers‘. I still think it undermines all the people who can barely afford a used transmission to keep their clunker on the road, let alone going into debt for a new car. Practice what I preach. Clunker or not, if a new car costs 25,000 bucks, less 4500 bucks= 20,500 bucks-2000 bucks for a good used transmission and installation and a related repair=18,500 dollars. That buys a lot of gas for the person who is on a tight budget and simply can’t get a loan or is not interested in a new car.
Think about it, Cash for Clunkers is not for everyone, trust me when I say GotTransmissions.com can set you up with the used transmission of your choice, which in most cases beats the heck out of a car loan. You all have good minds, use them wisely when it is time to replace your transmission.
