Cash for clunkers also known as the Car Allowance Rebate System (CARS) went into effect less than a week ago and is already facing funding issues.
The program, aimed to boost automotive sales and put cleaner cars on the road, offers people interested in purchasing a more fuel efficient vehicle rebates up to $4,500 in exchange for their old clunker. After only 4 days the funds are drying up and Whitehouse is “reviewing options to keep the program funded”
The original plan was to keep the offer open until November 1st 2009. With an overwhelming response the amount offered, terms or duration may change.
One billion dollars was set aside to fund the program and as of yesterday only $779 million remains. This equates to a depletion of 22% (5.5% per day) of the funds within four days. At this rate the money will dry up within the next two weeks. This estimate may actually be less than two weeks because of heavier sales volume on the weekends.
Bailey Wood from the National Automotive Dealers Association said last night that the program was suspended however Whitehouse spokesman Robert Gibbs stated that it was not being suspended.
So the answer to the question – Is the program over or suspended? NO, the as of Friday morning the program still remains in effect. The government is currently working to revamp the system. If you were planning on taking advantage of the rebates right now would be a great time to act because terms and condition may change anytime.
{ 1 trackback }