Cash For Clunkers Hit Roadblock

This program was so successful the billion dollars allocated was used up in 4 days. I guess everyone likes free money from the government. This should help the car dealers July sales numbers.-Lou

Cash for Clunkers suspension? White House scrambles

This much seems certain about the Cash for Clunkers program: Consumers are happy to take government rebates to buy new cars.

Other than that, confusion reigned Friday morning.

The fate of the $1 billion trade-in program was up in the air over concerns that it may have already burned through its funds less than a week after it was officially launched.
And it was unclear how much longer car buyers would be able to trade in clunkers after reports surfaced on Thursday night that the program would be suspended.

On Friday, the Obama administration said it was working with Congress to try to get more money and that Clunkers deal certificates would be honored through the weekend.
"The program will be in place" for anyone who had been planning to make a car purchase this weekend, White House spokesman Robert Gibbs told CNN. "This program appears to be a success for car buyers, car dealers, car companies and taxpayers."

One of the program's main champions in Congress, Sen. Debbie Stabenow, D-Mich., told CNN that the Michigan, Ohio and Indiana congressional delegations are working on a $2 billion extension of Clunkers program.

Stabenow had said the effort has provided an important boost to the economy and resulted in 200,000 car sales.

"I am delighted to hear dealers say that all of their salespeople are busy and they are selling more cars in a day than they had been selling in a month," Stabenow said.

.

MORE