Cash for Clunkers Running out of Money

Cash for clunkers may be out of money after just one week.  The White House said Thursday it was reviewing the wildly popular program because of concerns that the budget for rebates for new auto purchases may have been exhausted in only a week. The program, called the Car Allowance Rebate System, known as CARS, offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.

Dealers have been submitting the rebates at such a fast pace the government already has a backlog and isn’t sure how much money is left to fund the program and thus the program may have to be suspended until the processing catches up and the government can figure it out. 

Maybe we should just take back a few of those billions the government used to shore up Wall Street and just let everybody that is driving a clunker get a new car.  Seems that might give those banks a little business to keep them going and help people get a new car as well as keeping a few more dealerships from closing their doors.

The White House said auto dealers and consumers should have confidence that transactions under the program that already have taken place would be honored.  So if you have a clunker and want to get in on the cash better hurry!

Cash for Clunkers

The Cash for Clunkers Program that was passed by Congress in June has been approved by the President and is now in full effect.  Whether you agree that this is a good way for our government to spend a billion dollars or not, it is happening.  In case you don’t know the basics of the program Yahoo Autos had a very informative article that gave answers to the most frequently asked questions about the program.  Just click on this link for a look at the article Meltdown 101: The Cash for Clunkers Program by Ken Thomas, Associated Press writer.  This should help you decide if the program will benefit you or if you would be better off keeping your clunker.

We really try to avoid talking about the pros and cons of government spending because it is an issue that will never be resolved, but this issue affects lots of people here in Sacramento.  Whether you agree or disagree with it, Congress has approved a “cash for clunkers” program, bill H. R. 2346, Thursday to provide government incentives of $3,500 to $4,500 to motorists who trade in their gas guzzlers for more fuel efficient vehicles after Senate Democrats narrowly defeated a Republican effort to kill the plan. 

Cash for Clunkers

In the Sacramento area numerous dealerships have closed in the last couple of years Continue Reading »