Fox News, CNN, and several other news outlets are reporting that the popular Cash for Clunkers Bill may be suspended as early as today (Friday the 31st), only a week after it officially began. The Cash For Clunkers Program was supposed to last from July 1 – Nov 1, or until all the funds were depleted. Lawmakers are concerned the $1 billion allocated to the program may already be gone.
Has the Cash for Clunkers Program run out of money?
The government allocated $1 billion to the program, which is enough to fund the purchase of roughly 250,000 new vehicles at the $3,500 to $4,500 rebate (Is your car eligible for Cash for Clunkers?). Through Wednesday, over 22,000 vehicles had been purchased through the program, totaling nearly $96 million in government funded rebates. However, some dealers have brought up the possibility of delays in processing the claims and many people think the actual number is higher.
Will the Cash for Clunkers Program (CARS) resume?
Right now, the Cash for Clunkers Program is on hiatus until government officials can determine the status of the program, including exactly how many legitimate claims have been processed and how many legitimate claims have yet to be processed. Assuming there are still funds available, the program should resume.
Will the government allocate more funds to the Cash For Clunkers Program?
If the funds have already run out in less than a month, there will be a lot of pressure for the government to allocate more funds to the program. The auto industry is going through troubled times right now, and many dealerships have been forced to close their doors. Although it may be a short term help, there will be pressure from many people to add more funds to the program.
Update: House Moves to add $2 Billion more to CARS Program
The Cash for Clunkers program was enormously successful, and Congress is already moving to add $2 billion more to the Cash for Clunkers program. The goal is to have the funds approved by the end of the day so people who were planning on doing some weekend car shopping can still take advantage of the Cash for Clunkers deals.