News
House of Representatives Approves Extra Funding for “Cash for Clunkers” Program
The
House of Representatives has approved an extra $2 billion in funding to continue
the Car Allowance Rebate System after it became evident the initial $1 billion used
to fund the program would not be enough.
As
part of the “Cash for Clunkers” program individuals are being offered up to
$4,500 to trade in their older model cars for more efficient vehicles. The
initial $1 billion to fund the programs was said to be enough for 250,000 transactions
but that money is now shoring up much quicker than officials had anticipated.
It
was originally thought that the program would extend until Nov. 1 or until the money
ran out but with nearly 250,000 transactions already completed or in the works
Congress is clamoring for more money from unused stimulus projects.
While
several dealerships have marked an increase in sales due to the program there
are many who have expressed fear that the government will not be able to back
up their promise to deliver the money. Several dealerships have fronted their
customers the trade-in money, expecting the government to reimburse them at a
later date.
###
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