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'Cash for clunkers' rebates survive _ for weekend email this discussion to a friend?

By KEN THOMAS
Associated Press Writer
 
5 months ago

WASHINGTON (AP) - Attention car buyers: There's still time to get in on the "cash for clunkers" rebate rush.


The House hastened to refuel the program on Friday, voting to pour in $2 billion to prop up the trade-in deals that have all but overwhelmed suddenly booming car dealers and exhausted the $1 billion the government had set aside. The Senate has yet to act, but the White House said weekend deals would count, no matter what.


The program, only a week old, was designed to encourage owners of pollution-spewing gas guzzlers to trade them in on new, more efficient cars, helping the hard-pressed auto industry and the environment, too. Enticed by rebates of $3,500 to $4,500, owners are jumping at the offer.


"Consumers have spoken with their wallets," declared Rep. David Obey, D-Wis., the chairman of the House Appropriations Committee.


House members approved the measure 316-109 within hours of learning from Transportation Secretary Ray LaHood that the program was already running out of money. The Senate is expected to take up the measure next week, but the White House wouldn't make any promises for deals beyond the weekend.


President Barack Obama praised the House's quick work, saying the program had "succeeded well beyond our expectations and all expectations, and we're already seeing a dramatic increase in showroom traffic at local car dealers."


Press secretary Robert Gibbs sought to assure consumers that the program would be alive at least a couple of days longer. "If you were planning on going to buy a car this weekend, using this program, this program continues to run," he said.


Senate approval for the extra $2 billion seemed less certain.


When the Senate approved $1 billion in funding for the plan in June, Democrats struggled to round up enough votes. Sen. Dianne Feinstein of California pushed a separate plan requiring the new vehicles being bought to be vastly more fuel-efficient than the trade-ins, and she supported the measure that passed after receiving what she said was "absolute assurance" from Senate leaders that an extension would be modeled after her bill.


And Sen. Jeff Bingaman, D-N.M., said he was concerned with the way the House had paid for the extension, shifting $2 billion from a renewable energy loan program. He said that would "rob from the loan guarantees we provided through the recovery package that, in the long-term, will shift our country to homegrown, renewable energy while creating good green-collar jobs."


Drivers seemed more concerned about greenbacks.


Dennis and Marcia Strom hurried to Walser Toyota in Bloomington, Minn., on Friday when they heard the rebate might not last.


"I might have waited until the truck died," Dennis Strom said of his 14-year-old Dodge Dakota. "It's a good vehicle that suits our needs. But it's not worth $3,500."


John McEleney, chairman of the National Automobile Dealers Association, said many dealers have been confused about whether the program would be extended and for how long. Many had stopped offering the deals Thursday after word came out that the federal money had been exhausted.


With so much uncertainty, North Palm Beach, Fla., dealer Earl Stewart said he planned to continue to sell cars under the program but would delay delivering the new vehicles and scrapping the trade-ins.


"It's been a total panic with my customers and my sales staff. We are running in one direction and then we are running in another direction," he said.


Called the Car Allowance Rebate System, or CARS, the program is designed to get old, polluting vehicles off the road and scrapped while helping car dealers pull out of the recession.


"I think we are seeing ourselves being placed on the road to economic recovery here, and this road has been paved by the 'cash for clunkers' program," said Rep. Candice Miller, R-Mich., who represents a district heavy with auto workers.


Not everyone in the House was cheering.


Some Republicans accused the Democrats of trying to jam the legislation through, and a number of lawmakers also complained that many dealers have been left to contend with a chaotic government-run program.


"The federal government can't process a simple rebate. I've got dealers who have submitted the paperwork three times and have gotten three rejections," said Rep. Pete Hoekstra, R-Mich. "What is a dealer supposed to do?"


The program was funded to provide incentives for up to 250,000 new cars. Sen. Debbie Stabenow, D-Mich., said about 40,000 vehicle sales had been completed through the program, and dealers estimated they were trying to complete transactions on an additional 200,000 vehicles, leaving the funding in doubt.


 

AP Business Writer Stephen Manning in Washington and Nomaan Merchant in Minneapolis contributed to this report.

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tags:  cash for clunkers, cars, united states, auto industry, car sales
 
1. myLot reputation of 86/100. echomonster (2722)   5 months ago

While I understand the rationale behind this program -- it gets polluting cars off the road, replacing them with green vehicles, as well as provides a boost to carmakers -- I also feel like we've done enough for the auto industry this year. Isn't it time we let consumer spending naturally go back up given how much we've already spent? People will start buying again when they feel comfortable with the economic situation.

 
2. myLot reputation of 50/100. hussyinterrupted (154)   5 months ago

I always thought this program was ridiculous. It was basically just the government subsidizing auto manufacturers and the purchasers of new cars. $3500-$4000 was never enough to actually "help" people afford a a new car. When a new car costs at least 20k, $4000 is chump change. No one that couldnt afford a new car before the rebate, can afford one after. This program only subsidized people that wanted new cars and felt like being cheap, not the people who are struggling and NEED new cars and can't afford them.

But now, what I find laughable is that the Gov has to stop the program because*gasp* it's getting results! Just another example of how the gov is so out of touch with what exactly is going on in the world. Even when they get something right, they get it all wrong.


myLot reputation of 66/100. psycospaz (199)  5 months ago

I have actually participated in the 'cash for junk cars' and instead of buying a new car I bought a used one for 5,000, so basically I got it half off. It was great for me because the junker I traded in had a really bad transmission and it would have cost me 6,000 to have it rebuilt. So I made out ahead, with a good reliable car at about half the amount I would have paid for it!

 
3. myLot reputation of 95/100. alindahaw (2030)   5 months ago

This program is really good for the environment but I am not sure this will help the economy. Yes, the "cash for clunkers" help boost auto sales around the country but I am not sure if the ultimate consumers benefit from this program at all.

 
4. myLot reputation of 97/100. Aurone (2549)   5 months ago

I, for one, hope they keep it going. I could use a new car badly using this rebate may be the only way I can afford to replace my existing car, I think its a good thing. Helps the environment, people and the economy. Think of all the taxes those sales are generating for states and towns. And consider all the people who couldn't afford to replace their car otherwise.


myLot reputation of 90/100. ErrollLeVant (2452)  5 months ago

Maybe they should raise my taxes so you can get a new car!


myLot reputation of 50/100. hussyinterrupted (154)  5 months ago

You do realize you have to buy a new car to use this program right? If you cant afford a new car without the program, you cant afford one with the program. 3500-4000 is barely anything when dealing with car prices. Remember what caused this recession in the first place? Consumers that bought what they couldn't afford from companies more than willing to make a dime off of desperate people. It's about time we learn our lesson.

 
5. myLot reputation of 69/100. beckish (662)   5 months ago

It figures that this program - one of the few in the whole stimulus arena that actually might help consumers - is one of the ones that is running out of money. Maybe they should shift the large chunks of money they already gave companies to this program - instead of paying corporate bonuses, help people buy cars. Noting that the only people who can afford cars are those that are working - and there are a lot of people unemployed because of the economy - how are they going to be helped in the long-term?

 
6. myLot reputation of 91/100. the_vicar (4841)   5 months ago

How could the program already be depleated? Didn't the designers of the program expect people to use the money to buy a car? Wasn't that the purpose of the program?

Instead of govong the money to banks and auto makers, why not use it to promote business the way this package has? People are obviously flocking to buy cars which will help the auto industry. It doesn't make sense to just hand over money that will be used for bonuses for the very few rather than to allow the money to be used to help the many.

Is this the government by the people, for the people, and of the people or is it the government for the wealthy?


myLot reputation of 96/100. warmweatherwoman (1031)  5 months ago

"Is this the government by the people, for the people, and of the people or is it the government for the wealthy?"

I SECOND THAT!!!!

 
7. myLot reputation of 68/100. friskimage (487)   5 months ago

I believe that this program should be extended. Possibly, by even more than the additional 2 billion dollars. This program has more of a direct impact as a stimulus package, than anything in the 800 billion dollar stimulus package. Not only does this benefit the automobile manufacturers, it benefits the average citizen, as well as being good for the environment.

 
8. tgates07 (1)   5 months ago

We Just Need To Get Out Of All This Mess. Its Horriable!

 
9. myLot reputation of 66/100. wingsofangels (160)   5 months ago

They have a place near us that will give you equal what the government will so in total you get a double amount off for your new car. But most folks have been layed off in our area and cant afford the payments so even if they get $8000 off a $18,000 car they still have to pay off that $10,000. Where is that money coming from. To me this is stupid. I prefer my old gas car. I cant afford a green car.

 
10. dinushasirisena (35)   5 months ago

I like this idea.It promotes the concept of green cars.The fossil fuels of the earth are becoming scarce and we need to be able to put our trust in our own resources rather than waiting for crude oil to burst somewhere. Newer forms of energy and concepts for new energy are required.Some may be unrealistic but as Edison said, "there are 1000 ways not to make a light bulb."

 
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