If you are getting tired of reading all the news on the government's "cash for clunkers" program, don't worry... the Obama administration announced this afternoon that the popular incentive program will come to an end this Monday.There has been a lot of controversy over the program as of late, but one thing is for sure, car buyers have definitely been taking advantage of the program since it launched last month.
If you have been planning to take advantage of the program, you will have a few more days to trade in your old clunker and get the government incentive of up to $4,500.
Originally, Congress had allocated $1 billion for the program, but due to the popularity of the program that was extended to $3 billion, $1.9 billion of which has already been used.
The plan has done what the administration had hoped. Buyers hit the lots and bought more that 457,000 vehicles that qualified for the program, reducing inventories and leading the major automakers to re-hire employees and add additional shifts at their plants.
While consumers have embraced the program, not everyone has been so happy. A lot of auto dealers have been complaining about the lack of repayment from the government and decided to pull out of the program early.
The Obama administration is aware of the backlog in the processing of applications, but assures the dealers that their money is coming.
The government claims that 40% of applications have been processed, and that $145 million has already been paid out, which is a start, but still a very low percentage of the overall amount.
The Department of Transportation reports that on average, consumers that have traded in their old cars for the more fuel vehicles have increased their gas mileage by about 60%.
So, if you want to get in on the deal, you have until 8 PM EDT on Monday to trade in your old car.











Reader Comments (Page 1 of 1)
8-20-2009 @ 10:10PM
Tasia659 said...
LOVE the cash for clunkers Deal..!!
But we need more money for the program..!!!
It needs to be extended till the end of the year and give more people a chance to take advantage of the deal..
Good Job Mr. President!! Keep up the good work.
8-20-2009 @ 11:03PM
dhaspert13 said...
What you don't understand is, the dealerships are A. pulling out because of the lack of reimbursement, and B. ALL the major manufactures are out of inventory. Which makes the program useless. well done indeed, but it is time for this program to end.
8-20-2009 @ 11:47PM
u1947 said...
If I divide $3 bllion by $4500 I'll get the approximate # of vehicles sold right? I didn't think so. Is it $5,000, $10,000.
Do you start to see that every gov't program is dominated by waste and theft. That's why they have them
8-21-2009 @ 5:08AM
al coholic said...
Amen, brother (u1947).
We tolerate the waste of government spending during times of war but only to survive. Everything else the government does is ridiculously inefficient and intolerably wasteful as you pointed out.