The Car Allowance Rebate System, aka “Cash for Clunkers”, has been a huge success! Congress initially appropriated $1 billion dollars for this program that helps “consumers buy or lease a more environmentally-friendly vehicle from a participating dealer when they trade in a less fuel-efficient car or truck.” The program was designed to invigorate auto sales in the US during slow economic times, and it has been hugely successful. Slated to run until November 1, 2009, Cash for Clunkers has already used up all of its funds. The White House has announced the program will continue.
The continuance of the Cash for Clunkers program was in question, as the government told auto dealers to stop taking applications. In less than a month, the allocated money had been used up; however, the Obama administration is committed to seeing the program through. The New York Times reports:
Robert Gibbs, a White House spokesman, said the administration was looking for ways to continue the popular new program, which offers $3,500 to $4,500 for people who trade in an old car for a new one with higher fuel economy.
“If you were planning on going to buy a car this weekend using this program, the program continues to run,” he said. “If you meet the requirements of the program, the certificates will be honored.”
Mr. Gibbs said the administration planned to meet with Congressional leaders to find ways to save the program. He declined to say how long the program could continue without an infusion of funds.
- Your vehicle must be less than 25 years old on the trade-in date
- Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
- Only purchase or lease of new vehicles qualify
- Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
If you plan to participate in this program, which I saw advertised heavily at a car dealership this week, then you better hurry. There is no telling when the end will come for Cash for Clunkers.
More from GLI:
It doesn’t matter if they dole more money. They problem is still the backlog. Read this article: The Real Reason for the “Cash for Clunkers” Suspension. The ex car salesman blog shares exactly why they stopped the program. Even reports that some sales managers are calling asking for the money back because they were denied the rebate when the final paperwork was submitted but their car was already ruined by dumping a solution in the engine. They now have no car. Scary. See: http://tinyurl.com/ml9sdo
I’m surprised at how many people turned in their cars.
I’m not surprised. What’s great is that 7 of the top ten vehicles “clunkered in” were Ford Explorers. Hmmm. The fat profit margin for Ford, a big waste of gas. Surprised. I don’t think so.
It’s really too bad it wasn’t extended – it worked…