Cash for Clunkers Program Suspended?
Obama’s “Cash for Clunkers” program has become extremely popular thanks to the advertising pressure applied by auto manufactures. The program was introduced to help the struggling car companies by giving gas-guzzling-vehicle owners money towards the purchase of a more fuel efficient automobile. But now it seems the program is running out of money.
Funds used for the cash for clunkers program to buy used cars have run out.
Congress reported that the House of Representatives are looking into supplementary legislation that would release additional funding for the program. An answer is expected to come quickly as today as it is the last session before the August recess.
Program NOT officially suspended
The White House has also chimed in announcing that it was putting the program under review while denying the rumors that the cash for clunkers program was officially suspended. The rumors created widespread confusion among dealers and buyers looking to haul in their clunkers for cash!
The original plan
Originally, “Cash for Clunkers” was slated to continue through November 1st or until the funds ran out. With the number of dealers in the US, each dealer would have only needed to do 12 clunker trade-in deals in order to spend the $1 billion set aside for the program. The reality is that with the huge advertising push made by the auto industry, some dealers are reporting up 250 trade-in deals under the program.