Cash for Clunkers Fate Uncertain as Senate Debates Program Funding
The auto sales gusher could be turned off Tuesday if the U.S. Senate fails to approve an additional $2 billion in funding for the Cash for Clunkers program.
The surprisingly successful program exhausted the first $1 billion in about a week and the House quickly approved additional funds to keep clunkers running. Now the fate of the program rests with the Senate where two senators dropped their opposition Monday saying the program is having the desired environmental effect.
Also on Monday, Cash for Clunkers was credited with driving a healthy sales spike which gave Ford their first positive sales month in two years.
But all that momentum could be reigned in if the program is halted by lack of funds. While the measure was debated yesterday a vote is expected sometime today.
While clunkers was being praised by many, it was clear that the program was not exactly user friendly. Shoppers reported that the paperwork required took hours to complete. Dealers were confused about how to dispose of the trade-ins. Furthermore, while the cash behind the program was dwindling, the number of replacement cars on the lot was also diminishing.
- Posted by
- Philip Reed August 4, 2009, 6:40 AM
- Permalink
- Categories:
- Car Buying, Car Loans and Financing, Fuel Economy
- Technorati Tags:
- Cash for clunkers, Feinstein, Fuel efficiency, Opposition, Senate
The only thing uncertain is figuring out which Senators will go down in flames at their next election for opposing the extension of the program. :-)