Popular Cash for Clunkers Program to go Another Month

The popular "cash for clunkers" program that offers Americans up to $4,500 in rebates for trading in higher-mileage vehicles has been so popular since its inception that the $1 billion program is just about exhausted. But members of Congress have found the program to be so popular amidst a terrible economy, and in the wake of financial catastrophe by U.S. auto makers, that they are going to great lengths to keep the program going. Senate Majority Leader Harry Reid noted yesterday that he has the voles to pass a new $ 2 billion program that will the replace the existing program once the funding is used up. At present, it appears that there is enough funding to last for another month.

Said Transportation Secretary Ray LaHood, "I think the last thing any politician wants to do is cut off the opportunity for somebody who wants to get a rebate to buy a new automobile." Reid, speaking confidently, noted, "We’ll pass ‘cash for clunkers’ before we leave here."

To date, the program has included 157,000 transactions that have totaled $664 million in rebates. A whooping 83% of the vehicles traded in were trucks or SUVs, with 60 percent of the vehicles purchased under the program consisting of passenger cars. The total fuel efficiency increase under the program is noted at 61%. Despite obvious successes, members of both parties have concerns about the costs. Democrats, for instance, have argued the plan should require tougher emissions standards for the new vehicles. Senator Richard Shelby, from the other side of the aisle, noted, "People want to know what’s going to be next. Cash for shoes? Cash for groceries?"