Monday, August 10, 2009

$2B ‘Cash for Clunkers’ extension passes

The U.S. Senate voted 60-37 Thursday night to approve a $2 billion extension for the popular “Cash for Clunkers” program.

The U.S. House overwhelmingly approved the measure on July 31 after the program ran through its $1 billion fund in about a week. The measure would transfer money from other parts of the federal stimulus package.

The Car Allowance Rebate System, better known as Cash for Clunkers, offers a rebate of $3,500 to $4,500 for new-car purchases when buyers turn in older, less fuel-efficient models.

The Obama administration has expressed its support for continuing the program.

The program has been a proven success, President Obama said in a written statement after the Senate vote. “Businesses across the country — from small auto dealerships and suppliers to large auto manufacturers — are putting people back to work as a result of this program.”

Many auto dealers and manufacturers have been adding their rebates to the federal program, encouraging demand in what has been a tough two years for the auto industry.

Auto dealers report the program has greatly increased traffic on their lots.

www.bizjournals.com

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