Just when things looked bleak for the short-lived Cash for Clunkers rebate program, the U.S. House of Representatives voted today to inject another $2 billion into the dwindling automobile trade-in bailout.
The program offers rebates to car owners who trade in their gas-guzzlers for more fuel efficient models. The initial plan was funded with $1 billion. Car dealers are reporting 250,000 car sales since the program went into effect on July 1, 2009, though claims were not processed until July 24. When word spread yesterday that the program might be stopped, people flooded car dealerships to get in on the program before it ran out of funding.
Participants must trade in a vehicle that is less than 25 years old, get 18 or less MPG and the car must be registered and insured for the past year without a lapse. Consumers will be given between $3,500 and $4,500 at the time they purchase their new vehicle, based upon the scrape value of the clunker – as determined by the dealership.
Cash for Clunkers, a program that was expected to last until November 1, has been a win-win for buyers, dealers and car companies. The program is being administered by NHTSA – see cars.gov website.
Now it is up to the Senate to give the additional funding a thumbs up on Monday.