Report: Cash for Clunkers rebate program may be suspended, $950 million already used

Posted: Jul 31, 2009
Filed under: Industry News

CARS - Cash for Clunkers

Well, it seems like consumers are really going out there and taking advantage of the government’s new Cars Allowance Rebate System. It has been reported that just four-days after its launch, the Cash for Clunkers program has already burned through $950 million of its $1 billion budget.

Congressional sources have said that the program may have to be suspended as the Obama administration scrambles to find additional money to avoid a shutdown of the program.

A White House official and a source from the Department of Transportation have denied the reports and said that the program will not be suspended. A DOT official said that the administration is working with Congress to get more funding to keep the program alive.

- By: Omar Rana

Source: CNNMoney

Related Posts:

  1. BREAKING: Cash for Clunkers program to shut down Monday
  2. New York dealers pull out of Cash for Clunkers program
  3. Transportation Department makes more cars accessible under cash-for-clunkers program
  4. CARS Allowance Rebate System (aka Cash For Clunkers) rules officially announced
  5. Economists not enthusiastic about ‘Cash for Clunkers’ program

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  • chrystalk
    I hope this program ends up working out well.
  • judy558705
    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
  • zermatt
    I thought for sure that this program would not move this quickly as people that drive real clunkers don't have money for monthly payments. I think we are going to find that many of the cash for clunkers buyers are trading in the POS that was taking up space on the driveway and was not a primary driver.

    I hope that the taxpayers don't get stuck paying (or the deficit gets increased) for more clunker sales. ONE BILLION IS ENOUGH.
  • emma
    If you read the restrictions, you will see that true clunkers don't qualify under this program. For example, a 1985 Honda Civic will not be qualified but a 2003 Mazda MPV would. I guess the program is designed to crush gas-hogs ('85 Civic gets 32mpg while 03 MPV gets 18mpg).
  • anna old
    I feel the same way. I have a huge gas hog 1968 chevy van, it does not apply and I have a 1983 crummy toyota that also does not apply. Yet I see what they are crushing is absolutely absurd. I thought the point was to get the hogs off the road. But I guess mine are tooo clunky. Yet nobody can tell me why they are avoiding to get the real clunkers off the road!
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