The government's Cash for Clunkers program is about to run out of money, so the House of Representatives voted to fund the program with $2 billion more. The program just started Monday but it proved to be so popular with consumers that it ran out of money before the first week ended.
The passage of the bill, by a vote of 316 to 109, helps stave off a temporary shutdown of the Consumer Assistance to Recycle and Save (CARS) program. The program allows a consumer to trade in a gas-guzzling vehicle for a $3,500 to $4,500 rebate to help buy a more efficient model. Seen as a boon to the struggling auto industry and as a benefit for the environment, the original bill was passed last month with $1 billion in funding. The program was meant to last until November 1 or the cash ran out.
The latter came first. Dealers reported that their showrooms were crammed with consumers eager for a trade-in. Thursday, less than four days after the program was up and running, it was nearly out of money. According to reports, the White House warned lawmakers that the program would have to be halted at midnight. It wasn't, but uncertainty about the CARS's future was rife until today.
The House bill has to pass the Senate next week, but that seems more than likely. And government officials say that the program will continue regardless through the weekend. "If you were planning on going to buy a car this weekend using this program, the program continues to run," White House spokesman Robert Gibbs said this morning.
The program's popularity seems to have taken many lawmakers aback. "It has succeeded well beyond our expectations and all expectations," President Barack Obama said in remarks today. "It's working so well that there are legitimate concerns that the funds in this program might soon be exhausted." As of late Wednesday, 22,782 cars had been purchased through CARS. In their debate over whether to add another $2 billion to the fund, lawmakers spoke about dealerships in their districts being packed with customers for the first time in months. Consumers were clearly exhilarated, they said. So were struggling American auto companies. "This is one thing that we have done in this Congress that is absolutely working," Republican Rep. John Campbell of California said in debate today.
We think it's a great program and needs to be extended. Getting old clunkers off the road is a great goal, as is stimulating demand for new cars. It's a win-win and it helps consumers who will save money with fuel-efficient cars.
